Home / Business / Money / Sensex, Nifty consolidate; Nikkei negative on Ebola scare

Sensex, Nifty consolidate; Nikkei negative on Ebola scare


The News International Team

12:50 pm Market outlook: Investors had lots of hopes from the Winter session, but after its complete washout, between now and the Budget, Ajay Bodke of Prabhudas Lilladher sees the Nifty consolidate between 8000 on the lower side and the previous highs on the upside. He believes that the government needs to push through as many administrative reforms as it can and also take up pending reforms such as the land bill to make it easier for infrastructure companies to acquire land. Bodke believes that the third quarter earnings will be on expected lines.

He still has a base case of Nifty earnings growth at 13.5-14 percent in FY15. He feels among cyclical stocks, auto companies will lead the market. He recommends investors to buy Infosys and Tech Mahindra with a one-year view among large-cap IT stocks and Mindtree in midcap IT space.

12:30 pm Big gains: Shares of United Breweries Holdings rose 16 percent intraday after Calcutta High Court has dismissed United Bank of India (UBI)’s decision to declare his grounded Kingfisher Airlines a wilful defaulter.

Earlier in September, UBI had declared Kingfisher Airlines and its chairman Vijay Mallya wilful defaulters for non-payment of Rs 400 crore of dues. Three company directors include Subhash R Gupte, Ravi Nedungadi and Anil Kumar Ganguly.

UB Holdings is parent company of the ailing airline company. The airline company has unpaid loans of about Rs 6,500 crore, borrowed from a consortium of 17 banks.

Don’t miss: Aban Offshore soars 13% as CARE upgrades rating

The market consolidates with the Nifty hold the 8250-levels quite comfortably. The 50-share index is up up 63.85 points or 0.8 percent at 8264.55. The Sensex is up 210.09 points or 0.8 percent at 27451.87. About 1634 shares have advanced, 875 shares declined, and 79 shares are unchanged.

Sesa Sterlite is up 4.5 percent while Hindalco, Tata Steel, Tata Motors and Coal India are top gainers in the Sensex.

Japanese stocks turned negative after the health ministry announced a suspected case of the deadly Ebola virus, spooking investors but boosting health-related shares. The Nikkei benchmark fell 0.5 percent to close at 17,729.84 points, wiping out early gains inspired by last week’s strong Wall Street performance.

The Nikkei is on track for a yearly rise of almost 9 percent as the weak yen and aggressive asset buying by the Bank of Japan have helped offset the country’s disappointing economic performance. In 2013 it climbed a massive 57 percent on the back of Prime Minister Shinzo Abe’s easy-money policies. Tuesday is the final trading day of 2014 for Japanese markets.


Check Also

Rupee recovers 6 paise to 67.01

The rupee today recovered some lost ground by rising 6 paise to ...

Notes ban to have positive impact on economy

NEW DELHI: The government’s demonetisation move has led to widespread adoption of ...