Home / Business / Money / Sensex up over 100 pts, Nifty hits 8550; Wipro gains 6%

Sensex up over 100 pts, Nifty hits 8550; Wipro gains 6%


The News International Team

9:50 am Exclusive:  After the government hiked excise duty last week, it is now mulling reimposing customs duty on crude oil in Budget FY16.

While it had scrapped the duty in 2010, the government actually imposed the duty at 5 percent which was again taken back in July 2011 when the oil prices were very high.

With oil prices being where it is, the case is bright in terms of getting to bring the duty back. The only question now remains that whether it will be 2.5 percent or 5 percent duty. A 2.5 percent custom duty on crude oil would essentially mean that petrol, diesel would be kept at 5 percent and Naphtha, ATF would be kept at around 10 percent because there has to be a duty differential of at least 2.5 percent between crude and the petroleum products.

9:40 am Result analysis: Brokerages do not seem to be so excited about Wipro going ahead. Both JP Morgan and Bank of America Merrill Lynch have a neutral rating on the stock with target price of Rs 640 and Rs 600 per share respectively.

According to JP Morgan, sustaining reasonably elevated multiples requires a consistency of growth, which Wipro has not exhibited so far.

However, BoA ML remains cautious on the growth outlook, pending improvement in the company’s client-mining efforts and also feels that near term, relatively higher exposure to the energy and telecom verticals may impact growth.  Barclays maintains equalweight on Wipro with a target of Rs 600 per share as it feels higher-than-expected revenue growth or margin expansion to drive it.

Credit Suisse maintains underperform rating on the stock but feels gradual improvement in momentum and attractive valuations can be triggers.

9:30 am Poll: Hindustan Unilever’s (HUL) reported profit is expected to increase 2.7 percent year-on-year to Rs 1,091 crore in the quarter ended December 2014, according to the average of estimates of analysts polled by CNBC-TV18.

Adjusted profit after tax may jump 14.3 percent to Rs 1,091 crore during the same period. In Q3FY14, profit included an exceptional credit of Rs 23 crore along with few more adjustments.

Total income from operations is seen going up 10.2 percent to Rs 7,963 crore in the third quarter of current financial year 2014-15 from Rs 7,223 crore in same quarter last fiscal. Operating profit may surge 15.6 percent year-on-year to Rs 1,418 crore and marign may see expansion of 80 bps at 17.8 percent in the quarter gone by.

Don’t miss: Want to shop in Q3 earnings period? 11 stocks to make you rich

The market has started the week with a bang. The Sensex is up 174.17 points or 0.6 percent at 28296.06 and the Nifty is up 36.25 points or 0.4 percent at 8550.05. About 522 shares have advanced, 133 shares declined, and 230 shares are unchanged.

Wipro gains 6 percent while Hindalco, HDFC Bank, Sesa Sterlite and ONGC. Dr Reddy’s Labs and M&M are among losers in the BSE.

The Indian rupee continued its upward momentum on Monday as it opened higher by 23 paise at 61.64 per dollar versus 61.87 Friday.

Agam Gupta of Standard Chartered said, “The inflows into India remain strong. Government-owned banks will probably be aggressive buyers of dollar at 61.60- 61.65/dollar level while exporters will continue to sell into any upticks.” The euro slips against the dollar as the European Central Bank gears up for fresh stimulus.

In the US stocks rallied on Friday to close higher for a first session in six, as energy led gains with US crude rising and as investors considered a mixed bag of economic reports.

In Europe, equities closed mostly higher, but Swiss stocks weighed on wider benchmarks. However, the Swiss benchmark stock index closed over 5 percent lower on Friday, with a stronger currency making a country’s exports more expensive

In the morning Asian markets showed gains with Nikkei up over a percent following a positive handover from Wall Street on Friday.

Japanese and Korean markets were both trading with sharp gains in the morning on the back of a strong US lead.

In terms of economic data Chinese new home prices fell 4.3 percent in December from a year ago but the volume of sales hit their highest levels for the year last month.

From the commodity space, oil prices jumped more than 5 percent on Friday, boosted by the response to a bullish report on US consumer sentiment. Nymex trades around USD 48. While Brent crude is back above USD 50 per barrel. Gold continues to gain, as investors sought safety from volatility in wider markets


Check Also

Rupee recovers 6 paise to 67.01

The rupee today recovered some lost ground by rising 6 paise to ...

Notes ban to have positive impact on economy

NEW DELHI: The government’s demonetisation move has led to widespread adoption of ...