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HDFC, Sesa Sterlite, Hero laggards; Sensex, Nifty flat

11:00

The News International Team

11:45 am Exclusive interview: India’s largest lender State Bank of India has more than Rs 4000-crore exposure to companies that will be impacted by the recent Supreme Court judgement quashing 214 coal blocks. The bank has a loan exposure of Rs 4341 crore to six companies whose coal mines have been deallocated. Arundhati Bhattacharya, chairman of SBI does not believe that the entire exposure will be written off. She does not see loans extended to power plants turning into bad loans.

“Have to see what coal linkages these companies get,” she told CNBC-TV18. The government has promised linkages despite cancellation of mines. SBI’s exposure to large companies such as JSPL and Hindalco stands at Rs 21,000 crore, while the same for Usha Martin and others stands at Rs 5,000 crore.

11:30 am market outlook: Technology is the top pick in my portfolio at the moment, Helios Capital founder and 11:fund manager Samir Arora said in an interview to CNBC-TV18. He said some of the best IT stocks were available for 14 times earnings, compared to the frontline stocks in other sectors which were going for anywhere between 25-40 times earnings. Arora said he was not in a hurry to buy beaten down cyclicals or state-owned banks because reform measures would take a bit longer to play out, than what the market was anticipating. In short, he was not bullish on any stock where the performance depended on some particular event, either policy-related or some micro development.

Apart from technology, Arora is bullish on pharma and select auto shares. His fund has reduced exposure to private banks. He said he was bearish on logistics companies and Indian internet stocks, one of which he has already short sold. On the whole, he said the market was not expensive, but investors had to be choosy about what they were buying.

Don’t miss: JP Power rises 13%, sells 3 plants to JSW Energy

The market is absolutely flat as weak global cues, the recent streak of FII selling and impact of the Supreme Court verdict on coal blocks remains an overhang.

The Sensex is up 2.96 points at 26471 and the Nifty is down 0.35 points at 7911.50.
About 1148 shares have advanced, 1182 shares declined, and 77 shares are unchanged.

Sun Pharma is up 6 percent, reversing its early morning losses reacting to a Credit Suisse note that says the comoany has received the form 483 for the Halol plant. It lists 23 observations with no data integrity issues. Hence chances of an import alert are low now.

Hindalco, ONGC, Tata Steel and M&M are top gainers in the Sensex. Among the losers are HDFC, Coal India, Sesa Sterlite, TCS and Hero MotoCorp.

Globally, Asian markets are mostly weak reacting to the US sell off.  The dollar is at near-four-year highs against a basket of major currencies. Month-end dollar demand from importers also hurting the rupee.
 

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