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Sensex, Nifty consolidate; Axis firm, Wipro RIL in focus

12:00

The News International Team

12:40pm Banks in focus

The Reserve Bank of India is considering allowing banks to buy infrastructure bonds, in a bid to jumpstart a market that has suffered from low trading volumes after launching last year, said a source with knowledge of the central bank’s thinking.

Allowing banks to buy infrastructure bonds would mark a reversal for the central bank, which last year allowed lenders to only issue the debt, while limiting purchases to investors such as pension funds, provident funds, and insurers.

That limitation has backfired, according to bankers, severely crimping trading volumes in the market since lenders are the biggest buyers and traders in debt markets.

Reviving investment in infrastructure is a key priority for Prime Minister Narendra Modi which has been looking to ease regulations and bottlenecks to spur the sluggish economy, reports Reuters.

12:30pm Rupee Update

The rupee gained past 62 a dollar in afternoon trade, up 23 paise to trade at 61.82 against dollar.

12:00pm Market Check

Equity benchmarks remained choppy in noon trade as the frontline indices took a breather after yesterday’s stellar rally. The broader markets marginally outperformed benchmarks with the BSE Midcap and Smallcap indices rising 0.3 percent each.

The 30-share BSE Sensex declined 19.46 points to 28056.09 and the 50-share NSE Nifty slipped 3.55 points to 8490.60. About 1305 shares have advanced, 1209 shares declined, and 303 shares are unchanged on the Bombay Stock Exchange.

Asian markets except Shanghai lost today on the back of worries over global growth, and oil’s continued price slump. Switzerland’s unexpected decision to remove its currency cap also heightened volatility in global financial markets.

TCS is among the top losers on Nifty today as its dollar revenues for the third quarter missed muted expectations. Brokerages gave a thumbs down, reduced their earnings per share targets on the tech major. Management told CNBC-TV18 that they remain optimistic on their overall FY16 outlook.

Axis Bank came off the day’s high after delivering an in-line set of earnings for the thrid quarter. Net profit grew by 18.5 percent year-on-year to Rs 1,900 crore and net interest income climbed 20.3 percent to Rs 3,589 crore. Asset quality remained stable.

In important earnings today, Reliance Industries’ net profit is seen at Rs 5,000 crore against Rs 5,742 crore quarter-on-quarter. Gross refining margins may be seen between USD 7.5-7.8 per barrel. From IT, Wipro may see a muted dollar revenue growth at USD 1.8 billion and its Q4FY15 guidance is seen at 1-3 percent or 2-4 percent.

SpiceJet is the stock in focus, up 10 percent. Ajay Singh told CNBC-TV18 that he will make an open offer if SEBI asked him to and his revival plan includes cutting costs, improving revenue and margins. Sun TV too spiked up today as the SpiceJet deal removed an overhang from the company.

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