The News International Team
9:50 am FII view: Gautam Chhaochharia, UBS says consumer staples/discretionary and autos have done well in anticipation of pent-up demand led consumption recovery, especially in the context of the October festive season. However, we expect disappointment in the near term, he adds.
“Our top-down view is that the consumer and auto sectors’ risk-reward profiles are relatively unattractive. We are underweight on consumers and 2-wheelers and our least preferred stocks include United Spirits, HUL and Hero Motocorp. Some stocks may still meet expectations or even surprise positively. We prefer Maruti Suzuki, Titan and Asian Paints,” says Chhaochharia.
9:30 am Poll: Nestle India, which is engaged in the food business, is expected to report a 10.9 percent growth in third quarter profit at Rs 316 crore compared to Rs 285 crore in the year-ago period, according to the average of estimates of analysts polled by CNBC-TV18. Numbers will be announced today and the company follows calendar year 2014 as its financial year.
Total income from operations may increase 10.3 percent to Rs 2,603 crore in the quarter ended September 2014 compared to Rs 2,360 crore in corresponding quarter of last fiscal.
Operating profit during the quarter is likely to jump 7.8 percent on yearly basis to Rs 532 crore but margin may decline 50 basis points to 20.4 percent.
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After some profit taking yesterday, the market has opened higher on Tuesday. The Sensex is up 66.07 points at 26818.97 and the Nifty is up 10.70 points at 8002.40. About 354 shares have advanced, 121 shares declined, and 29 shares are unchanged.
L&T, ICICI Bank, ONGC, Bharti Airtel and TCS are top gainers in the Sensex. Coal India, Infosys, HUL, Hindalco and Hero are among the laggards.
The Indian rupee opened flat at 61.33 per dollar versus 61.31 Monday.The US dollar nurses modest losses, on expectations of more dovish comments from the Federal Reserve.
Agam Gupta of Standard Chartered said, “We do not expect rupee to dip below Rs 61.20/dollar due to demand from nationalised banks at that level. The range for the day could be Rs 61.20-61.45/dollar. We expect exporters to sell above Rs 61.40/dollar.”
In the US, stocks closed little changed, after the market’s best week of the year, as investors tracked the cost of crude as a proxy for the health of the global economy and sorted through quarterly earnings.
It is an important week for the US markets, as the Federal Reserve will begin its 2-day policy meeting today. The fed is expected to end its 3rd round of bond buying and the investors will look for clues on timing of rate hike.
European stock markets closed lower after a closely-watched German economic report came in weaker than expected, putting the brakes on a relief rally over the results of a key health check on the region’s banks. German business sentiment hit its lowest level in almost two years.
In commodities, Brent crude slipped to USD 85 per barrel as Goldman Sachs cut its 2015 outlook for oil prices, saying it expects Brent crude to drop to USD 85 a barrel in the first quarter of 2015. From precious metals space, gold prices slipped to USD 1220 an ounce ahead of FOMC meeting.