The News International Team
10:20am FII View
Andrew Garthwaite, Credit Suisse says lower oil price would improve India’s GDP by 1.5 percent, it would also impact monetary policy with RBI likely to begin cutting interest rates in early 2015.
“These positives only serve to further underpin our positive stance on India, which benefits from a cheap currency, the most comprehensive set of reforms, strong demographics and limited exposure to slowdown in China. The Indian market is not cheap, but historically, an acceleration in GDP growth tends to correlate with a re-rating of the equity market,” he adds.
10:00am Market Check
Equity benchmarks are consolidating today ahead of expiry of the December derivative contracts, which scheduled to be on Thursday. The Sensex rose 66.64 points to 27438.48 and the Nifty advanced 19.80 points to 8245.
The broader markets outperformed benchmarks with the BSE Midcap and Smallcap indices rising 0.7 percent and 0.5 percent, respectively. Nearly two shares advanced for every share declining on the Bombay Stock Exchange.
Given that Indian equities are in a sweet spot, market should hold steady at current levels, says Sandeep Bhatia, Executive Director and Head of Sales at Kotak Institutional Equities.
Going ahead, the market may witness fresh highs before the Budget, he says in an interview to CNBC-TV18.
Shares of NTPC and Gail topped the buying list, up 2 percent each followed by ITC, ONGC, Maruti Suzuki, Mahindra & Mahindra, HUL, Hero Motocorp, Bharti Airtel, Coal India, Sesa Sterlite and BHEL with 1-1.7 percent gain.
However, Infosys, ICICI Bank, Reliance Industries, TCS, L&T, Hindalco Industries and Dr Reddy’s Labs declined 0.4-1 percent.