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Sensex up 300 pts, Nifty reclaims 7900; Hindalco, BHEL zoom

09:15

The News International Team

09:59am Telecom Commission meet

Telecom Commission is likely to meet on October 15 and discuss issues pertaining to the upcoming spectrum auction and full mobile number portability.

“The Telecom Commission will meet on October 15. The agenda has not been finalised yet but issues such as full MNP, NIA for the auctioneer and telecom connectivity to Andaman and Nicobar are likely to be taken up,” a source in Department of Telecom said.

Telecom regulator TRAI has already given its final view on issues that were raised with respect to full MNP, a service which will allow mobile subscribers to change their operator in any part of the country while retaining their number. At present, a subscriber can avail such facility within same telecom service circle.

The working group at DoT on spectrum auction is also likely to place its study before Telecom Commission which comprises members from the DoT, Department of Electronics and IT, Planning Commission, Finance Ministry and Department of Industrial Policy and Promotion.

TRAI has given its recommendation with respect to auction of CDMA spectrum (800 Mhz band) and is working on recommendation for radiowaves in 900 Mhz and 1800 Mhz band
which at present are used for GSM services by telecom operators like Airtel , Vodafone, Idea Cellular , Videocon , reports PTI.

09:40am FII View

Jyotivardhan Jaipuria, Bank of America Merrill Lynch says aggregate Sensex PAT is expected to show growth of 12 percent on a consolidated basis and 9.1 percent on standalone basis. There is also an expected deceleration in sales growth to 4.8 percent, he adds.

“However, good news is that forecast ex-energy PAT growth is strong at 16.4 percent. Secondly, EBITDA margin is expected to continue showing improvement. This is consistent with our view that earnings will recover gradually and show sharp growth from 2HFY16. Near-term, we continue to expect market to be range-bound with negative bias due to slower than expected reform pace,” says Jaipuria.

09:15am Market Check

Equity benchmarks rebounded in early trade on Thursday with the Sensex rising 294.82 points or 1.12 percent at 26541.61. The Nifty reclaimed 7900, up 84.50 points or 1.08 percent at 7927.20 post positive US cues.

The broader markets too saw buying interest with the BSE Midcap and Smallcap indices gaining 1 percent each. About five shares advanced for every share declining on the Bombay Stock Exchange.  

Hindalco topped the buying list, up 4 percent post Alcoa earnings. BHEL surged 3.5 percent on getting Rs 7800 crore EPC order from Tamil Nadu Generation & Distribution Corporation.

Dr Reddys Labs, ICICI Bank, SBI and DLF were other gainers, up 1.5-2 percent.

The Indian rupee gained in early trade. It has opened higher by 27 paise at 61.13 per dollar against previous close 61.40.

Mohan Shenoi of Kotak Mahindra Bank said, “Dollar gave back its gains due to reference to dollar strength and its impact on inflation in the FOMC minutes released overnight. This is expected to strengthen rupee today. USD-INR is expected to trade today in a range of 61.10-61.45/dollar.”

On the global front, Asian equity markets rose after US indices posted their biggest one-day gain of 2014. Hang Seng, Nikkei, Straits Times and Taiwan Weighted gained 0.2-0.8 percent while Shanghai and Kospi fell 0.4-0.6 percent.

In the US, stocks ended about 2 percent higher as markets extended gains on the FOMC minutes and recovered from Tuesday’s selloff, closing 274.8 points higher; the Dow Jones industrial average had its best day since December 18, 2013. The S&P 500 and the Nasdaq had their best day since nearly a year ago on October 10, 2013.

And in Europe, shares closed mostly lower, as fears over global growth and the Ebola virus spooked investors. Peripheral markets like Russia, Portugal and Irish markets were all under pressure and ended with cuts of 1.5 percent to 2 percent.

In the currency space, dollar slipped to near 2-week lows against the euro after minutes of the Federal Reserve policy meet suggested the Central Bank could take its time in raising interest rates.

In commodities, Brent crude held on the USD 91 level as global growth forecasts have raised new concerns about oil demand. And that too, at a time when US crude inventory levels continue to rise.

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