The News International Team
10:00 am FII view: Bharat Iyer, JPMorgan says markets are going into the reporting season with relatively realistic expectations compared to the previous few quarters.
“Our portfolio stance has been to position for the forecast economic recovery. We maintain an overweight stance on IT services and healthcare. The demand environment remains positive. We believe fears of substantial appreciation in the INR and the consequent headwinds to these sectors are overdone,” says Iyer
9:50 am New IPO norms: To boost fund raising from markets, the Securities and Exchange Board of India, on Thursday, proposed e-IPO norms, where investors can bid for shares through Internet and eventually on mobiles, while already listed public sector undertakings (PSUs) will be provided a ‘fast-track’ route for share sales to meet the disinvestment targets.
For already listed companies as well, the market regulator has proposed a fast-track route for raising of funds through FPOs (follow-on public offers) or rights offers (where funds can be raised from existing shareholders).
Under the new norms, SEBI has proposed to drastically cut the timeline for listing of shares within 2-3 days of the IPO, as against 12 days currently.
9:30 am Market outlook: Brokerage house UBS has rated India among the emerging markets (EMs) it sees doing well in 2015. Broadly, it expects emerging markets to face macro economic headwinds this calendar, but feels weak crude prices will be a key driver of earnings growth, especially in Asia.
UBS has forecast a target of 1070 for its MSCI Global Emerging Markets Index, a gain of 12 percent in dollar terms. “EM equities should face headwinds in 2015 from higher US rates (from June) and further dollar strength. The impact of Fed tightening on EM may be more muted this time given limited dollar gains, Fed transparency and lower than average ‘Fed-start’,” said the UBS note to clients.
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The market has opened with smart gains on Friday. The Sensex is up 195.90 points or 0.7 percent at 27470.61 and the Nifty is up 50.85 points or 0.6 percent at 8285.45. The 50-share index briefly touched 8300.About 534 shares have advanced, 72 shares declined, and 325 shares are unchanged.
Tata Steel, Tata Motors, ONGC,Tata Power and HDFC Bank are top gainers in the Sensex.
The Indian rupee gained in the early trade. It has opened higher by 19 paise at 62.48 per dollar compared to previous day’s closing value.
On Thursday, the rupee ended at nearly 4-week closing high of 62.67 per dollar. The euro extends losses to trade near a nine-year low, as investors bet the European Central Bank was getting closer to adopting quantitative easing to ward off deflation. Also a slump in German industrial orders in November reinforced bearish views of the single currency.
In the US, stocks surged for a second day, with benchmarks turning higher for the year, as oil steadied. The CBOE volatility index fell nearly 12 percent to 17.01. And in Europe, stocks surged to close almost 3 percent higher after European Central Bank president Mario Draghi reiterated yesterday that the central bank was ready to start “full-blown” quantitative easing.
In a letter made public, Draghi said the governing council would closely monitor the “risks to the outlook for price developments over the medium term”.
In commodities, crude prices held steady led by better-than-expected US jobs data. Nymex crude was above USD 49 while Brent crude was trading above USD 51 per barrel. From precious metals space, gold was flat as expectations that the Federal Reserve would exercise patience in raising interest rates left US bond yields flat.