The News International Team
11:50 am 2015 outlook: Jitendra Sriram, MD & Head of Research at HSBC India says the house is more positioned towards equity markets at this juncture because we are a cusp of recovery. He expects equities to give better returns than debt markets in 2015. In 2014, debt was a big play because India was probably the only market amongst emerging and Asian markets with higher interest rates.
However in 2015, rates could move higher globally and soften in India. He expects a 50 basis points rate cut by RBI through the year. Meanwhile, US Fed is also likely to hike rates by Q3 of 2015 because the US GDP growth is more conducive for a rate hike, says Sriram. According to him 2015 is going to be an earnings tracker.
11:30 am Buzzing: Shares of Bajaj Corp touched a record high of Rs 367.20, up 4.7 percent intraday after shareholders allowed the company to raise FII investment limit.
In a extraordinary general meeting on Tuesday, shareholders of the hair care products manufacturer approved the proposal to raise foreign institutional investors’ investment limit to 49 percent from current 24 percent.
“Shareholders permitted foreign institutional investors (including their sub-accounts)/foreign portfolio investor to acquire and hold equity shares of the company under the portfolio investment scheme/foreign portfolio investment scheme or any other permissible mode under FEMA up to an aggregate limit of 49 percent of the paid-up equity share capital,” said the company in its filing to the exchange.
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It is a tepid day at Dalal Street as the market prepares to wind up the year. The Sensex is up 69.78 points at 27473.32 and the Nifty is up 23.40 points at 8271.65. About 1414 shares have advanced, 895 shares declined, and 117 shares are unchanged.
Telecom stocks are in focus as TRAI releases recommendation on reserve price and valuation for 2100 mhz. E&Y says reserve price is on the higher side and only serious players with serious demand will bid.
BHEL, Dr Reddy’s Labs, Hindalco, NTPC and ICICI Bank are top gainers in the Sensex. Among the losers are M&M, Maruti, Bajaj Auto, HDFC Bank and Coal India.
The year 2014 ends on a strong note. The Nifty gains over 30 percent posting its best annual performance in 5 years. The midcap index is up 55 percent and BSE Small Cap Index is up 68 percent. The 10-year bond too can’t be left behind with yields softening to the lowest level since July 2013 and FII debt flows reaching the USD 26 billion, the highest ever.
Globally, Asian markets are broadly higher in thin trade. The only data point is HSBC PMI for China for December came in at 49.6 in line with the preliminary reading of 49.5. For today Japan, South Korea, Indonesia, Thailand and Phillipines are shut and Hong Kong and Australia are open only for half the day