The News International Team
9:55 am FII view: Rakesh Arora, Macquarie says there’s no significant pick-up in revenue growth as yet, reflecting that economic recovery is tepid. “Several one-offs are also contributing to weakness in the current quarter,” he adds.
“While expectations have moderated, there’s still headroom to meet estimates for the full year. Stocks to position for the results on the positive side are Sun Pharma, Crompton Greaves, IRB Infra, HCL Technologies and Yes Bank. Stocks to position for the results on the negative side are Canara Bank, Bajaj Auto, SAIL and Indiabulls Real Estate,” Arora says.
9:45 am Buzzing: Shares of Bajaj Corp, hit all time high at Rs 437.50 intraday, after iot posted stellar December quarter earnings. The FMCG firm reported 43.78 percent increase in standalone net profit at Rs 41.84 crore for the third quarter ended December 31, 2014. It had reported net profit of Rs 29.10 crore in the October-December quarter of 2013-14 fiscal, the company said in a BSE filing. Bajaj Corp’s net sales in third quarter of 2014-15 stood at Rs 205.40 crore, up 29.83 per cent as against Rs 158.20 crore in the year-ago period.
9:30 am Vibrant Gujarat: Large conglomerates from India and abroad today announced huge investment and job creation plans at the two-day Vibrant Gujarat Summit, which kicked off this morning in presence of Prime Minister Narendra Modi and leaders from across the world.
Kumar Mangalam Birla of Aditya Birla Group announced investment plans for Rs 20,000 crore in the state. Among foreign companies, Australian mining giant Rio Tinto’s CEO Sam Walsh said the group would add 30,000 jobs in diamond cutting industry in Gujarat, adding that Australia is looking forward to the state as a promising business destination. Vibrant Gujarat Summit (VGS) is a biennial global business summit, being held since 2003, when Modi was Chief Minister of the state, and has always seen huge investment commitments running into billions of dollars being announced by business leaders from India and abroad.
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The market has opened flat on Monday. The Sensex is up 13.73 points at 27472.11 and the Nifty is up 6.85 points at 8291.35. About 394 shares have advanced, 130 shares declined, and 313 shares are unchanged.
NTPC, Infosys, M&M, Tata Power and Hindalco are top gainers in the Sensex.
The Indian rupee gained in the opening trade. It has rose by 17 paise at 62.15 per dollar against 62.32 Friday.
The dollar nurses losses, having suffered a setback after an unexpected fall in US wages, while yen gains. Agam Gupta of Standard Chartered said, “We expect USD-INR to see a range of 61.95-62.25/dollar today. Exporters and FIIs will be looking to sell USD on any upticks. The India CPI data after market will be keenly watched for further cues.”
In key macro data to watch today, December CPI is seen slightly higher at 5.2 percent due to base effect. However, core CPI is seen around 5.3 percent. November IIP is expected to grow 2.2 percent due to pick in manufacturing and higher working days.
US stocks dropped on Friday, pulling benchmarks back into the red as the December jobs report topped expectations but hourly earnings declined.
In commodities, oil prices remain under pressure having hit their lowest since April 2009. Brent crude currently trades below USD 50 per barrel while Nymex slips to USD 47 per barrel. From precious metals space, gold inches higher to USD 1220 an ounce as dollar declines and as uncertainty in Greece boosted demand for assets seen as safe.