The News International Team
01:55pm Tyre stocks on buyers’ radar
Tyre makers gain as natural rubber prices in the local market are near their lowest levels in five years.
A strong rupee also helps further lower the cost of imports. Tyre makers source natural rubber from both home and abroad.
Auto sales in September were also robust, spurring share gains, dealers say.
Shares in Apollo Tyres jump as much as 7.6 percent. JK Tyre and Industries rises as much as 5.6 percent and Ceat gains as much as 4.9 percent, reports Reuters.
01:20pm FII View
FII flows into India hit a seven-month low in September. But the question is will flows continue to be under pressure on US Federal Reserve rate hike jitters? Cameron Brandt, Director of Research, EPFR Global believes investors are perhaps edging more towards a risk-off mind set.
He says institutional investors will probably deploy the money piling up in money market funds once they get some certainty about the number of issues. But fund managers continue to talk India up so there seems to be some appetite, he adds.
Rishav Dev, Equity Strategist Capital – Institutional Equities, Quant, too, is not much worried about the decline in fund flows. He says maybe the magnitude of flows has slowed, but it is inflows nonetheless and not outflows. Moreover, he adds, global factors are in India’s favour.
Dev believes November-December are the best months for emerging markets equities. According to him, equity inflows could be in excess of USD 25 billion this year.
01:00pm Market Check
The market extended losses in afternoon trade due to fall in capital goods, metals, healthcare and HDFC group stocks. The Sensex dropped 151.91 points to 26416.08 and the Nifty declined 51.15 points to 7894.40 while the rupee gained 30 paise to 61.31 a dollar.
The rupee has been trading in the range of 61-62 a dollar, which is the fair value of the rupee, says Ashutosh Khajuria, President – Treasury, Federal Bank. He sees the range of the rupee at 60-62/ dollar.
Shares of HDFC, Sun Pharma, Mahindra and Mahindra, Cipla, Sesa Sterlite and Hindalco Industries lost 2-3.5 percent followed by L&T, ONGC, SBI, Dr Reddy’s Labs, Tata Steel and Coal India with 1-1.8 percent loss.
However, Tata Motors rallied 2.6 percent despite a 8 percent fall in September sales. Commercial vehicle sales of the company went down 13 percent to 28,943 units and light commercial vehicle sales fell 24 percent year-on-year to 18,539 units while medium and heavy commercial vehicle sales rose 18 percent to 10,404 units.