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Choppy Nifty holds 8500; auto stocks in focus

11:00

The News International Team

11:30am Oil Update

Oil rose more than 1 percent today with Brent climbing above USD 71 a barrel, recovering slightly from losses in the prior session as a turbulent market struggled to find a price floor.

The market has swung between sharp gains and losses since OPEC said last week that it would maintain steady output in an oversupplied market. Brent and US crude are down more than 30 percent since June and touched five-year lows on Monday.

Brent hit a high of USD 71.46 a barrel before trading up 62 cents at USD 71.16 by 0350 GMT, after falling USD 2 on Tuesday.

US crude was at USD 67.68 a barrel, off the day’s high of USD 67.97 but up 80 cents from the previous session when prices dropped more than USD 2.

American Petroleum Institute data showing a bigger-than-expected fall in crude stocks supported US oil prices, reports Reuters.

11:00am Market Check

It is quiet day for the benchmark indices as the Nifty and Sensex consolidate while broader markets outperform. Globally, Asian markets trade mostly higher. Japan’s Nikkei and China’s Shanghai surge to multi-year peaks.

The Sensex declined 35.40 points to 28408.61 and the Nifty slipped 2 points to 8522.70. About 1684 shares have advanced, 745 shares declined, and 90 shares are unchanged.

Auto stocks are in focus today. Mahindra & Mahindra gained as CLSA maintains buy on the stock with a target price of Rs 1550. According to the brokerage, M&M’s stock performance is now completely hinged on the market response to upcoming new products in FY16. The stock rallies 1.2 percent.

Tata Motors too sees buying. Jaguar Land Rover has begun building its plant in Brazil which will be the first fully owned factory outside UK. The company will invest USD 290 million in this plant and the first vehicle roll out is expected in 2016. The stock gains 0.6 percent.

In the broader space, Eicher Motors and TVS Motor gained 4-6 percent. Goldman Sachs has resumed coverage on both the stocks with a buy. On TVS, Goldman has a 12-month target price of Rs 345 and on Eicher a 12-month target of Rs 19235.

Moving beyond the auto space. Havells India and Bajaj Electricals gain 4-8 percent, reacting to a CNBC Awaaz exclusive news that all government offices and municipal corporations will have LED lights.

Insurance companies such as Reliance Capital gains 3 percent on news of FDI in insurance making headway. Reports indicate the congress has back key reforms measures and the draft report is expected in first 10 days of December after which the panel will approve. It will be tabled in the house thereafter.

Pratibha Industries loses 5 percent as crisil downgraded the company’s ratings to BB+ negative from BBB negative. The company told CNBC-TV18 that it is comfortably servicing their debt as of today.

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