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Nifty struggles below 8100; banks FMCG firm, pharma weak


The News International Team

1:50 pm FII view: Brokerage house Morgan Stanley says the widely held view that India is at the beginning of a new multi-year bull market like the one seen in 2003-04, may not be correct. According to the brokerage, while there are some similarities, there are plenty of dissimilarities as well. In a nutshell, the macro and market environment were much more appealing at the start of bull market in 2003-04

“The similarities we found were the state and direction of global liquidity, the 2-year forward expectation of earnings growth, which was 15% for both periods, the ending point of absolute valuation multiples and sector performance ranks,” says the Morgan Stanley note.

1:30 pm Interview: Crude prices have softened of late and paint companies feature among the top benefactors owing to lower input costs. Abhijit Roy, MD, Berger Paints believes the reduction in crude prices will aid gross margins, however adds that most of the company’s raw materials will have no impact from the crude fall. Roy rules out any price hikes in the short-term given softness in input prices.

Although there is no material pick-up in volumes so far, the paint company is confident of achieving margins in the range of 11-12 percent on the back of their market share having improved to current 19-20 percent, he says in an interview with CNBC-TV18. While the automotive segment is seeing signs of uptick, a revival in the infrastructure space will abet growth in industrial paint segment, he adds.

Don’t miss: HPCL gains 3%; Macqauire raises target, falling crude aids

The Nifty continues to trade weak for the third day in a row.  The Sensex is down 77.96 points at 26979.45, and the Nifty down 14.65 points at 8079.45.

Sun Pharma, Coal India, ONGC, Wipro and M&M are top laggards in the Sensex. Among the gainers are SBI, HUL, HDFC, Hero MotoCorp and NTPC.

The cabinet committee on economic affairs (CCEA) has waved the green flag to sell stake in Coal India, ONGC and NHPC and are set to garner over Rs 45,700 crore at current market rates. Retail investors are also set to get a 20 percent reservation in this stake sale.

Speaking at the Economist India Summit 2014 Power & Coal Minister Piyush Goyal said that the government does not intend to fully exit Coal India and the Supreme Court’s decision on the coal allocation issue will help re-orient Coal India.

Japan’s Nikkei share average rose to an eight-month high on Thursday as the weak yen lifted sentiment and a meeting between the central bank governor and prime minister boosted expectations of additional easing in the long-term.

The Nikkei climbed 0.8 percent to 15,909.20, the highest closing level since Jan. 10. The broader Topix hit a six-year high, rising 0.3 percent to 1,311.24.

Bank of Japan Governor Haruhiko Kuroda said he told Prime Minister Shinzo Abe that the central bank will not hesitate to ease policy further if its 2 percent inflation goal becomes difficult to achieve.


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