The News International Team
The market remained under pressure with the Nifty struggling below 8100 level as capital goods, healthcare, select oil & gas and metal stocks took a hit. The broader markets too gave up all their early gains, trading 0.5 percent lower.
The Sensex declined 174.22 points to 26813.24 and the Nifty fell 49 points to 8078.35. About 893 shares have advanced, 1600 shares declined, and 454 shares are unchanged on the Bombay Stock Exchange.
Market experts are not too worried about the correction. Ridham Desai of Morgan Stanley expects more volatility ahead but expects earnings to pick up in the next two quarters. Geoff Lewis of JPMorgan too continues to be positive on Indian market. Arvind Sanger of Geosphere, though sounds a cautios note, says will buy into India on dips.
Asian markets are mixed amid choppy trade as concerns over lower oil prices persist. Brent crude continued to trade around USD 50 a barrel on supply glut worries.
Indian crude basket fell by USD 2.31 to USD 49.22 a barrel yesterday.
Lower oil prices continued to impact stocks like GAIL and Cairn, down 3 percent each. Media report suggested that gas transmission company GAIL postponed LNG tender date as it found no takers.
HUL continued its gains from yesterday, up 3 percent. Infact it is the top gainer today as brokerage upgrades pour in. In previous session, Deutsche Bank upgraded the stock to buy with a target price of Rs 900 and today Credit Suisse and JP Morgan followed suit. Credit Suisse upgraded the stock to outperform from neutral with an increased target price at Rs 915 from Rs 800 earlier and also upgraded earnings by 4 percent to build in lower input costs. JP Morgan upgraded the stock to neutral with a December 2015 target price of Rs 790.
Kotak Mahindra Bank and ING Vysya Bank are in focus. Both banks will hold their extraordinary general meeting today for approving the USD 2.5 billion all stock deal between the two. Both stocks gained 2 percent each.
ONGC managed to gain, up 0.9 percent. UBS says ONGC is relatively better positioned than global emerging market upstream oil state owned entities. Valuations are at trough levels on enterprise value/EBITDA and price to book value, according to the brokerage. UBS has a buy rating on the stock. “It is among our top picks with a target price of Rs 480,” it adds.