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Nifty above 8700, Sensex firm; Sesa, Cipla HDFC Bank up

09:15

The News International Team

9:50 am Sale: Wind turbine maker Suzlon is close to selling off its wholly owned German subsidiary Senvion in a move to pare its debt.

The company’s board met on Tuesday to discuss its debt reduction strategy and is in the process of implementing Rs 9500 crore corporate debt restructuring (CDR) plan.

The company is aiming to retire its debt by Rs 4000 crore by FY15-end.

9:40 am Market outlook: Gaurav Mehta, Ambit says having found strong support on multiple occasions at the lower end of the all-important channel that has defined Nifty’s upmove over the past twelve months, the uptrend in the index has been reinforced.

“We look for upside targets near the 9000 mark over the next few weeks. On stocks, we recommend buys on Cipla , IndusInd Bank , TCS ,  Coal India and  Alstom India while recommending going short on HPCL ,” he adds.

9:30 am Poll: Cigarette-hotel-to-FMCG major ITC ‘s third quarter profit is expected to rise 12.6 percent year-on-year to Rs 2,686 crore, according to the average of estimates of analysts polled by CNBC-TV18. Net sales are seen going up 11.7 percent to Rs 9,744 crore in the quarter ended December 2014 compared to Rs 8,727 crore in same quarter last year.

Analysts feel overall earnings growth is likely to be soft during the quarter. Profit growth has been capped at just 12-13 percent against company’s historic range of 15-20 percent. According to them, the full impact of a third consecutive year of price hikes (in cigarettes business) may hit volumes in the quarter.

They expect margin expansion across all segments except hotels and paperboards/packaging. Operating profit may rise 12.8 percent on yearly basis to Rs 3,706 crore driven by cigarettes, FMCG and agri businesses. Operating profit margin may expand 40 basis points to 38 percent in the quarter gone by.

 Don’t miss: RBI tweaks base rate rules: Can banks avoid cutting rates ?   

After a stellar performance, the market has opened higher. The Sensex is up 93.46 points at 28878.13 and the Nifty is up 24.05 points at 8719.65. About 501 shares have advanced, 148 shares declined, and 199 shares are unchanged.

Sesa Sterlite, M&M, Tata Steel, Cipla and HDFC Bank are top gainers in the Sensex.

The Indian rupee opened flat at 61.68 per dollar versus 61.69 Tuesday.

Pramit Brahmbhatt of Veracity said, “Indian local markets are expected to extend their gain today, though at higher levels we may see some profit booking as yesterday local equities posted new milestones and closed all time high for the day.”

The yen nurses broad losses as investors sold the Japanese currency in a precautionary move against any further policy easing by the Bank Of Japan.

Global cues, meanwhile, are positive with US markets ending trade with marginal gains in volatile trade. European markets too closed with modest gains ahead of the European Central Bank policy meet. And Asian markets traded mixed in morning trade.

In other asset classes, Nymex crude was trading at sub-USD 47 per barrel amid worries over ample supplies and sluggish demand after the International Monetary Fund cut its 2015 global economic forecast. Brent is trading at USD 48 dollars per barrel.

From the precious metals space, gold rose to USD 1290 dollars an ounce to a 4-and-a-half month high as uncertainty over the extent of a stimulus program the ECB is expected to unveil on Thursday drove investors into assets seen as lower risk.

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