The News International Team
The market recovered amid consolidation in noon trade but the broader markets continued to outperform benchmarks with the BSE Midcap and Smallcap indices rising 0.7 percent each.
The Sensex fell 10.54 points to 27447.84 and the Nifty rose 3 points to 8287.50. About 1495 shares have advanced, 991 shares declined, and 381 shares are unchanged on the Bombay Stock Exchange.
In the market opinion, Deutsche Bank sees Sensex rising 23 percent by year end. The company has set a Sensex target of 33,000 by December 2015 on the back of improving macros, stable government and fall in commodity prices.
In a discussion on CNBC-TV18, Pratik Gupta, Head – Equities, Deutsche Bank (India) said the outlook for India remains highly positive and though there is an increase in the outflows, Indian market will outperform on the back of flows by the domestic investors.
Cairn India, Hindustan Zinc and Sesa Sterlite were in focus today, down 1-3 percent. Reports indicated that Vedanta Resources is exploring a merger of the two companies (Cairn India and Hindustan Zinc) with Sesa Sterlite. This move, however, could help reduce Sesa’s net debt of nearly Rs 32,500 crore.
United Spirits gained close to 7 percent. Minority shareholders gave their nod to enter into licensing and cost sharing agreement with Diageo Plc. This is the final step of USL’s integration with Diageo and is expected to add Rs 700 crore revenue in the first full year.
Globally, Asia markets were mixed with Shanghai falling at one week low. Brent crude traded sub USD 50 a barrel while gold climbed to one month highs.