The News International Team
9:50 am Market outlook: This is a market in which investors should buy on dips feels Vibhav Kapoor, Group Chief Investment Officer, IL&FS. In an interview to CNBC-TV18, Kapoor said the market was right now banking on hope and trying to discount FY16 numbers instead of FY15 numbers, be it macro or corporate earnings. Kapoor said the the macro environment still looked a bit uncertain at the moment, but there were enough signs of an improvement in FY16.
He said most stocks were looking expensive in the short term, but investors would do well to buy and hold on to good stocks for 12-15 months. Kapoor is bullish on cyclicals, particularly auto and financials.
9:30 am Buzzing: Drug firm Ranbaxy Laboratories today said the US health regulator has revoked its tentative approvals for its generic anti-viral drug and stomach and esophagus problems treatment tablets. “As a consequence, in FDA’s view, Ranbaxy has forfeited its eligibility for 180-day exclusivity for its ANDA for valganciclovir hydrochloride tablets USP, 450 mg,” Ranbaxy Laboratories said in a filing to BSE.
The communication from US Food and Drug Administration (USFDA) said that Ranbaxy’s ANDAs of concern did not have any data integrity issues. However it added that “its original decisions granting tentative approvals were in error because of the compliance status of the facilities referenced in the ANDAs at the time the tentative approvals were granted.”
Don’t miss: ECB leaves key rates unchanged; Draghi warns on growth outlook
The market has opened on a tepid note. The Sensex is down 37.16 points at 27878.72, and the Nifty is down 7.30 points at 8331.00. About 555 shares have advanced, 184 shares declined, and 46 shares are unchanged.
Tata Motors, Axis Bank, ITC, Dr Reddy’s and Tata Steel are top gainers in the Sensex. Among the losers are Sun Pharma, Hero, M&M, Coal India and HDFC Bank. Ranbaxy lost 4 percent.
The Indian rupee fell 11 paise in early trade. The currency opened at 61.52 a dollar compared to Wednesday’s closing value of 61.41 per dollar. The market was shut on Thursday for public holiday.
Pramit Brahmbhatt, Veracity expects the rupee to trade weak as overnight dollar is trading strong ahead of payrolls data due for the day. “Strength in dollar will keep rupee under pressure. The range for today is seen between 61-62/USD,” he adds.
In the US on Thursday stocks climbed, lifting the Dow and S&P 500 to records, after upbeat economic reports in the US Jobless benefits fell by 10,000 to 278,000 last week, to 285,000.
In Europe, the ECB president Mario Draghi assured that the bank would adopt further easing measures, if needed. Yesterday, it decided to keep interest rates unchanged in its monetary policy review. However, president Mario Draghi’s dovish comments soothed the equity markets and shares closed mixed.
The president had been the subject of speculation that members of the ECB governing council were planning to challenge him over his management and communication style.
In the Aisan markets, Nikkei saw some profit booking in Thursday’s session but renewed its upmove as the yen move to 114, in the morning.
However, in the currency space, the euro languishes near two-year lows against the dollar after European Central Bank after Draghi renewed his pledge to take necessary steps to stimulate a sluggish euro zone economy.
In commodities, Brent crude prices flat near 82 dollars per barrell on an apparent momentum towards a deal between iran and world powers over its nuclear program and higher u-s inventories
Gold prices drop further to 1140 dollars an ounce.