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Sensex, Nifty open flat; Wipro, HDFC, ONGC top gainers

09:15

The News International Team

9:50 am Snowman debut day: Snowman Logistics shares will list today. It has fixed the issue price at higher end of the price band of Rs 44-47 apiece as majority of the bids were at the higher band.

After looking at great response to the issue, which got oversubscribed 60 times supported by QIBs, HNIs as well as retail, expectations for listing price are very high now.

According to sources, the grey market premium is around Rs 15-23 over the issue price of Rs 47, but experts’ range for listing price is 5-45 percent.

Experts are very bullish on the stock in the long term as it is the only listed company in cold chain industry having excellent fundamentals, but their debut price range for the stock is very high.

9:35 am FII view: Abhay Laijawala, Deutsche Equities says the brokerage house believes that the skew in India’s household savings to physical assets has bottomed and it may see a transition towards more productive financial assets.

“The trend of increasing allocation to equity MFs is one such sign of this shift, in our view. The financials sector should be the biggest beneficiary of the shift. Prospective stock beneficiaries include Kotak Mahindra Bank, Axis Bank, HDFC Bank, Bank of Baroda, PNB and LIC Housing Finance,” he adds.

The market has opened marginally higher. The Sensex is up 28.47 points at 27024.34 and the Nifty is up 1.35 points at 8087.05. About 607 shares have advanced, 152 shares declined, and 29 shares are unchanged.

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Wipro, TCS, HDFC, ONGC and ICICI Bank are top gainers.Sun Pharma, Sesa Sterlute, HDFC Bank, GAIL and Hero are major laggards.

The Indian rupee opened flat at 60.97 per dollar against the previous day close of 60.92.The dollar hovered below a 14-month peak against a basket of major currencies as the sell-off in sterling and the euro tapered off, but commodity currencies remained under pressure.

Pramit Brahmbhatt of Veracity said, “Expect investors to trade cautiously and track the market closely at higher levels. Rupee is expected to trade rangebound to slightly weak tracking the local equity movement. See a range of 60.50-61.50/dollar.”

IIP for July and CPI for august will be released today. A CNBC-TV18 poll sees IIP falling to 1.7 percent month on month primarily due to weak core sector data and base effect. CPI on the other hand is likely to soften to 7.7 percent mainly on account of food inflation. Core inflation will be key and could surprise with market expectation anywhere between 6.9 percent to 7.3 percent.

In the US, stocks cut losses to close mixed as geopolitical tensions lingered ahead of consumer data. Boosted by low oil prices, transports also gained and helped stocks turn positive.

In commodities, crude prices rebounded from multi-month lows as global tensions and profit-taking momentarily outweighed fears about ample supply. Separately IEA expects global oil demand to grow by 0.9 million barrels a day in 2014. That’s a drop of 65,000 barrels per day, compared with last month’s forecast.

From precious metals space, gold logged its fourth straight daily loss yesterday, weighed by increasing speculation that the US Federal Reserve could soon raise rates sooner than expected. It was trading around USD 1240 an ounce.

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