The News International Team
9:55 am Market outlook: The December quarter may not have been very positive for companies, but the next financial year is likely to be much better, says Anup Maheshwari, executive vice president and head of equities, DSP Blackrock. In an interview to CNBC-TV18, Maheshwari says FY16 will be the year of superior earnings to the tune of 15-20 percent buoyed by increasing operating margins.
Furthermore, Maheshwari is confident that FY16 will see the return of retail investors into the equity market and expects 15 percent annualized returns in the same. On sectoral preferences, Maheshwari is bullish on financials, consumer discretionary, autos and pharmaceuticals.
9:45 am Pie of the sky: IndiGo, the low-cost carrier, continues its domination of Indian skies with a 31.8-percent market share for 2014 having flown 214,25 lakh passengers during the year, according to official figures released on Monday.
Jet Airways together with its subsidiary JetLite was at the second spot with a 21.7-percent market share carrying 146.65 lakh passengers. Government-owned Air India (AI) stood third with a market share of 18.4 percent.
SpiceJet managed to get a 17.4-percent share of the total domestic passenger traffic in 2014 on the back of heavy discounts during the year.
9:30 am Downgrade: The International Monetary Fund (IMF) trimmed its global growth forecast for 2015-16, cautioning that the boost from lower crude oil prices would be offset by dimmer economic prospects for China, Russia, the euro area, Japan and oil producers. In its World Economic Outlook (WEO) update, the IMF projected the world economy would expand by 3.5 percent this year and 3.7 percent next year, picking up from 3.3 percent in 2014 but lower than its previous estimates. In October, it predicted global growth for this year and next at 3.8 and 4 percent, respectively.
The downgrade comes days after the World Bank lowered its growth forecast for global growth to 3 percent from the 3.4 percent forecast made in June, warning that the world economy is overly dependent on the single engine of the U.S. recovery.
Don’t miss: Railways not to be privatised, investments needed
The market opened higher as the Sensex is up 109.31 points at 28371.32. The Nifty is up 28.50 points at 8579.20. About 485 shares have advanced, 112 shares declined, and 222 shares are unchanged.
Coal India, Hindalco, TCS, Axis Bank and Tata Steel are top gainers in the Sensex. Among the losers are HUL, Tata Motors, GAIL, Maruti and Bajaj Auto.
The Indian rupee opened lower by 11 paise at 61.82 per dollar against previous day’s closing value of 61.71 a dollar.
Ashutosh Raina of HDFC Bank said, “The earlier than expected rate cut by Reserve Bank of India (RBI) last week has spurred the Indian markets; with currency, equity and bond markets rallying. The USD / INR currency pair is back in 61-62 range with appreciating bias.”
Global cues, meanwhile are positive with the Asian market treading mixed in early morning trade as investors await data from China for further trading cues. China’s Q4 GDP was expected to grow by 7.2 percent but came in at 7.3 percent.
European equities closed largely higher on Monday, as investors look ahead to Thursday’s European Central Bank (ECB) meeting.
In other asset classes, the euro struggled around 11-year lows as investors braced for a crucial meeting later in the week which could see the European Central Bank take its boldest steps to revive the euro zone’s economy. In commodities, Nymex Crude prices hold below USD 48 dollars per barrel and gold prices were steady above USD 1270 an ounce as prices supported by wider market volatility that boosted the metal’s appeal as a haven from risk.