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BHEL, Cipla, Maruti up; BSE Sensex, Nifty sluggish

11:00

The News International Team

11:50 am Market outlook: There will always be corrections in any bull market, but investors would be better off not selling or going short for now, feels BSE broker Ramesh Damani. In an interview to CNBC-TV18, Damani said the market is entering a sweet spot. He says growth is picking up, interest rates are falling, and the government is pushing through reforms.

“There is lot of underlying strength in the market when one looks at the screen,” Damani said. According to him, the breadth in the market (advancing stocks minus declining stocks), the quality of stocks making new highs and the kind of returns that investors have made reflect the strength. Damani said there are global concerns, but investors in India will reap the benefits of sitting through the pain of any likely corrections.

11:30 pm FII view: Things are improving at the macro level, but it could take some time for it to translate into corporate earnings, feels Vibhav Kapoor, Group Chief Investment Officer of IL&FS. In an interview to CNBC-TV18, Kapoor says he expects marginal earnings downgrades. This in turn could keep the market upswing in check, he says, adding that the medium term outlook remains positive.

Part of it is because of the steep fall in crude and metal prices, which will hurt earnings of the companies in both sectors. The other reason is because of too much expectations of a recovery at the ground level, which is not playing out as expected. Kapoor feels the investment cycle could take longer to pick up, also because of the government cutting down on expenditure to meet its fiscal deficit target.

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The market is almost in a slumber mode. The Sensex is down 4.46 points at 27580.81 and the Nifty is up 17.30 points at 8340.30. About 1446 shares have advanced, 883 shares declined, and 327 shares are unchanged.

BHEL, Cipla, Axis Bank, Hindalco, and Maruti are top gainers in the Sensex. Among the losers are ONGC, Infosys, HUL, Tata Motors and Tata Power.

Crude oil futures fell sharply by 22.28 percent to Rs 2,824 per barrel today as speculators engaged in trimming positions amid a weak trend in Asian markets. The trading sentiment remained weak in futures trade as oil extended its disconcerting plunge towards six-year lows in Asian trade today after Wall Street giant Goldman Sachs lowered its price forecast, adding to concerns about a supply glut and weak demand, analysts said.

Meanwhile, Brent yesterday plunged more than five per cent to close below USD 50 for the first time since April 2009, and WTI fell 4.7 percent to its weakest since March 2009.

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