The News International Team
03:30 pm Market closing: The market ended with some smart gains on hopes that FOMC meeting outcome will be favourable as Fed Reserve indicated that there may be no rate cuts till 2015. The Sensex was up 138.78 points at 26631.29 and the Nifty was up 42.60 points at 7975.50. About 1530 shares have advanced, 1482 shares declined, and 104 shares are unchanged.
Dr Reddy’s Labs, Infosys, Tata Power, BHEL and Wipro are top gainers in the Sensex. Among the losers are Cipla, Coal India, HDFC Bank, Sun Pharma are major laggards.
03:15 am Outlook:
The head of the Employees’ Provident Fund Organisation (EPFO) says it has “no option” but to change its rules and put money into riskier investments by buying stocks for the first time to seek higher returns.
KK Jalan, chief of the EPFO, said that to get better returns, the fund with about USD125 billion in assets needs to diversify investments, the bulk of which are in government debt.
“The way our fund size is increasing, and the way it is bound to increase, there is no other option,” Jalan told Reuters in an interview.
Prime Minister Narendra Modi’s government also wants the 80 million-member EPFO, the world’s ninth largest by assets in 2012, to invest in stocks, which could support buoyant Indian markets.The Nifty has been a star performer so far in 2014, rising more than 26 percent.
02:50pm Kotak on Hero and Bajaj Auto
Kotak raised target price on Hero Motocorp to Rs 3,200 from Rs 2,800 earlier and Bajaj Auto to Rs 2,550 from Rs 2,250.
“Hero Motocorp will increase market share as Honda runs into capacity constraints while Bajaj Auto will surprise with export growth with entry into new markets,” said the report.
Honda has current capacity of 4.6 million units, which will be fully utilised in FY15. Capacity expansion of 1.2 million units in Gujarat is delayed to end of Q4FY16, it added.
02:25pm Cairn India in focus
Cairn India said it had made three new oil discoveries in its exploration block in Rajasthan, taking its total oil discoveries in the block to 36.
One of the wells is in close proximity to the company’s Mangala field and it is planning fast track appraisal to commercialize the discovery, Cairn India, part of London-listed Vedanta Resources Plc , said in a statement on Wednesday.
The company is spending USD 3 billion over three years to boost oil production and natural gas output from its Rajasthan block, which had an output of 66.3 million barrels of oil equivalent in the year ended March 31.
Cairn India has a portfolio of nine blocks, one in Rajasthan which contains multiple assets, two on the west coast and four on the east coast of India, and one each in Sri Lanka and South Africa, reports Reuters.
02:00pm Equity benchmarks remained firm amid consolidation in afternoon trade. The Sensex rose 76.97 points to 26569.48 and the Nifty gained 24.35 points at 7957.25 but the BSE Midcap and Smallcap indices declined marginally.
About 1208 shares have advanced, 1678 shares declined, and 92 shares are unchanged.
Vineet Bhatnagar, MD, Phillip Capital believes that if Nifty does not close above 8030, on a weekly basis, it is headed for a very sharp correction. 8200 could be high for Nifty in 2014, he adds.
Two-wheeler maker Hero Motocorp topped the buying list, up 3 percent followed by Infosys, TCS, Mahindra and Mahindra, Dr Reddy’s Labs, Tata Steel, Wipro, Bajaj Auto, Tata Power and BHEL with 1-2 percent. Index heavyweights Reliance Industries, ITC and ICICI Bank gained 0.3-0.9 percent.
However, Jindal Steel fell 4 percent and Sesa Sterlite lost 2 percent. Shares of Cipla, Coal India and Gail India declined over a percent.
Meanwhile, global stocks and commodity prices rose, boosted by speculation the US Federal Reserve will maintain a pledge on low rates later in the day and by a report China’s central bank will provide the country’s biggest banks with fresh loans.