The News International Team
09:35am Market Expert
The Indian equity market is going through a cyclical recovery, so one should brace for near-term correction, says Pankaj Murarka, Axis Asset Management. However, the outlook for India remains constructive in the medium-term hence any dip should be seen as an opportunity to buy, he told CNBC-TV18 in an interview.
The market would see some pullback due to global cues, but valuations are reasonable, he added.
On sectors, Murarka is betting on cyclicals. Among financials, he is positive on private banks. The fund house has also started buying public sector lenders in anticipation that economy recovery will help banks to improve their stressed balance sheets.
He is also bullish on automobile and capital goods sector.
09:15am Market Check
Equity benchmarks opened marginally lower on Wednesday following weak global cues. The Sensex slipped 13.61 points to 26258.36 and the Nifty fell 4.75 points to 7847.65.
About 437 shares have advanced, 315 shares declined, and 28 shares are unchanged.
Shares of Sesa Sterlite, Infosys, Hindalco Industries, Sun Pharma, Gail India, NMDC and Jindal Steel were down 0.8-1.6 percent while NTPC, ONGC, Bharti Airtel, M&M, HUL and Tata Power gained 0.5-1 percent.
The Indian rupee opened flat at 61.46 per dollar on Wednesday as against previous day’s closing value of 61.43 a dollar.
Dollar bulls are being forced to temper their enthusiasm post weak German data and IMF cutting its global growth forecast – dollar index eases to 85.664 off its 4-year highs.
NS Venkatesh of IDBI Bank says the rupee will continue to take the cues from the equity market flows. He expects the rupee to trade in the range of 61.4-61.6/dollar.
On the global front, Asian markets were trading weak following negative US cues. In the US, stocks fell sharply, extending losses into a second session, as investors fretted slowing economic growth in Europe and the potential impact on coming third-quarter earnings from US corporations.
And in Europe, shares closed lower with sentiment curbed by weak economic data from Germany and a downturn on Wall Street.