The News International Team
The market saw consolidation on Friday after rallying 729 points on the Sensex in previous session. FMCG, capital goods and healthcare stocks supported the market while technology, select metals and auto stocks saw selling pressure.
The 30-share BSE Sensex rose 46.34 points to 28121.89 while the 50-share NSE Nifty closed above the 8500-mark, up 19.65 points at 8513.80.
Though current valuations look expensive, the new high by expiry can not be ruled out, say experts.
Sanjeev Prasad of Kotak Institutional Equities says the valuations of the market are expensive at this point and a lot of good news has been factored in. It is now hard to find quality ideas at reasonable valuations.
For the week, the market recouped previous week’s losses with the Sensex and Nifty rising 2.4 percent and 2.8 percent, respectively after surprise rate cut by RBI and fell in December trade deficit.
Global markets, however, traded in the red today. In Asia, Nikkei, Hang Seng, Straits Times and Kospi fell over a percent whereas only Shanghai closed 1.2 percent higher. European markets were trading marginally in the red as the Swiss National Bank’s unexpected decision to remove its currency cap unleashed volatility within the markets.
On the home turf, the rupee gained past 62/dollar, up 19 paise to close at 61.87 a dollar.
Hindustan Unilever surged 2 percent, which joined the Rs 2 lakh crore market cap club. The stock rallied 9 percent in addition to 14 percent rally in previous week.
Shares of Sun Pharma, Mahindra & Mahindra, Coal India and BHEL topped the buying list on Sensex, up 2-3 percent followed by Dr Reddy’s Labs, Cipla, L&T, Tata Power and Sesa Sterlite with more than a percent gain.
Axis Bank closed flat after third quarter earnings. The private sector lender’s third quarter net profit rose 18.45 percent year-on-year to Rs 1,900 crore, boosted by other income. Rise in provisions, however, checked bottomline growth.
However, TCS trimmed losses in last hour of trade, down 0.5 percent post earnings. Brokerages gave thumbs down to earnings and reduced earnings per share targets. Management told CNBC-TV18 that they see revenue headwinds in Diligenta & energy but remained optimistic on their overall FY16 outlook.
Top telecom operator Bharti Airtel was down 1.9 percent as Swiss Franc appreciation will impact by Rs 290 crore as of first 15 days in January. The company has bonds worth 350 million Swiss Franc.
Shares of Infosys, Tata Motors, State Bank of India, Hero Motocorp and Hindalco Industries were down 1-2 percent.
GAIL India was down 0.8 percent on brokerage downgrades. Bank of America Merrill Lynch cut FY15-17e earnings per share, and target price by 19 percent to Rs 327. According to brokerages, steep cut in the oil price forecast would hit GAIL’s LPG and petrochemical profitability. Jefferies lowered rating on GAIL to underperform as it believes risk to earnings from lower crude prices is under-appreciated.
In the broader space, SpiceJet was locked at 10 percent on the back of a revival plan. Kalanithi Maran and KAL Airways, which own 53.5 percent stake in the low cost carrier, will transfer ownership and management control to original co-promoter Ajay Singh.
Sun TV Network climbed over 11 percent as Credit Suisse said the SpiceJet deal removed major overhang on the group stock. The brokerage maintains outperform rating on the stock and mark them as a top pick in the media space.
Entertainment Network India surged 18 percent as Cabinet cleared Phase III auction of FM Radio today.
Piramal Enterprises closed 1 percent higher as the company is considering the acquisition of UK-based Coldstream Labs for around USD 30 million or around Rs 189 crore.
Hathway Cable gained 1.7 percent as Goldman Sachs Singapore Pte bought 8.09 million shares of the company at Rs 65/share in a large deal yesterday. Opto Circuits surged 4 percent on getting European approval for Coronary Stent system.
Spice Mobility advanced 1.8 percent as its arm acquired 38.5 percent stake in online education co Anytime Learning. However, PTC India Financial Services lost nearly 6 percent on a 49 percent decline in third quarter bottomline.