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ITC sees relief rally, ICICI Bank most active; Nifty choppy

12:00

The News International Team

12:50pm ABB India in Focus

Shares of ABB rallied 14 percent. Investors are hurriedly buying its shares after global CEO has said that there is no plan to delist its Indian arm.

He said that the company is planning to double exports from India in next 3-5 years and exports are likely to form nearly 50 percent of India business.  The management also added that there is a significant pick-up in orders in next 24-36 months.

The power and automation technology provider has been on buyers’ radar after it won orders worth Rs 334 crore from two public utilities group, Bihar Grid Corporation (BGCL) and West Bengal State Electricity Transmission Company. As per the agreement, ABB will build new transmission and distribution sub-stations that will boost power supplies in the region.

12:30pm FII View

Bullish Rakesh Arora, Head of Research – India at Macquarie Capital Securities has a new Nifty target of 9,960 for the next 12 months. He expects earnings to grow 19-20 percent and adds that this fresh Nifty target is driven by 15 times earnings estimate for FY17. Given the ongoing slide in global oil prices, he foresees more upside to the market if this fall continues further.

Further he adds that hope trade in India will continue for some more time and the market is unlikely to see major correction anytime soon. If any correction happens, it will be limited to 4-5 percent, he said.

12:00pm Market Check

Equity benchmarks remained lacklustre after shedding more than one percent gain in morning trade. ITC managed to support the frontliner indices while capital goods, select financials and auto stocks weighed. Midcap index has seen consolidation after outperformance in previous session.

The 30-share BSE Sensex rose 54.28 points to 28496.99 and the 50-share NSE Nifty advanced 5.20 points to 8542.85. About 1293 shares have advanced, 1277 shares declined, and 115 shares are unchanged on the Bombay Stock Exchange.

ITC continued to see a relief rally, up almost 4.5 percent today reacting to news that the government is unlikely to ban to sale of loose cigarettes. Godfrey Phillips and VST Industries gained 5.6 percent and 2.5 percent respectively on the same news.

Infosys remained in focus today after CEO, Vishal Sikka outlined strategy for the first time, saying ‘renew’ & ‘new’ will be the strategic focus for the IT major. He is also looking at acquisitions in under-penetrated geographies and verticals.

Private sector lender ICICI Bank was among the top five most active shares. The face value of the share split into Rs 2 from Rs 10.

Globally, Shanghai let Asian markets higher. Japan’s Nikkei and China’s Shanghai both traded near multi-year highs. Analysts expect Europe to open higher ahead of the European Cental Bank meet later today.

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