The News International Team
11:50 am FII view: The Indian market is almost 1 percent lower today with the key benchmark indices losing heavily led by global cues. Speaking to CNBC-TV18, Dhiraj Agarwal, Director – Institutional Sales, Standard Chartered Securities says the current market fall is not a worry and does not see a major correction in the market anytime soon. According to him, the market is unlikely to correct more than 5-6 percent by December-end.
He, however, expects Nifty to gain about 30-40 percent in the next 24 months. Going ahead, Agarwal believes one has to take a positive call on the economy which is currently in doldrums at the ground level. He believes government is doing its best to resolve the coal supply issue. He is bullish on economic sensitive and cyclical stocks as government’s decisions will have positive impact in the long-term though in short-term growth may remain subdued.
11:30 am Buzzing: Investors are hurriedly buying shares of sugar stocks in early trade on government’s impetus for the industry. Sugar stocks like Balrampur Chini , Bajaj Hindusthan , Shree Renuka Sugars rallied 7-8 percent on Thursday as the government has fixed a price of Rs 48.50-49.50 per litre for procurement of ethanol for blending with petrol, a rate much higher than the price oil companies presently pay to buy the sugarcane extract.
Abinash Verma, DG, Indian Sugar Mills Association (ISMA) says in a euphoric note that almost all private sugar companies will benefit from it as sugar industry is likely to see better realisations with new price. He also adds that procurement may increase up to 10 percent If supplies increase. “Indian revenue may rake in nearly Rs 5,000 crore after the new rate is implemented. Oil marketing companies (OMCs) have been paying Rs 47.50 at oil depot for procurement,” Verma says in an interview to CNBC-TV18.
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The market is sluggish tracking global weakness. The Sensex down 226.08 points at 27605.02 and the Nifty is down 65.30 points at 8290.35. About 805 shares have advanced, 1414 shares declined, and 75 shares are unchanged.
GAIL, L&T, Tata Motors, Infosys and ICICI Bank are losers in the Sensex. Among the gainers are BHEL, Bajaj Auto, M&M, Sun Pharma and TCS.
Globally, Asian markets are in the red with Japanese markets at 2-week lows weighed down by the Dow closing at a one-month low, worse than expected Japanese machinery data and a further decline in oil prices.
Crude oil futures recovered by 0.65 per cent to Rs 3,876 per barrel today as speculators
created positions on the back of rebound in Asian region. Marketmen said the rise in crude oil futures was largely in tandem with a better trend in Asian trade where crude rebounded after falling sharply to fresh five-year lows in the previous session after OPEC cut its forecast for demand 2015 and US stockpiles saw surprise surge.