Home / Business / Money / Sensex inches towards 29000, Nifty firm; HDFC SBI up 2-3%

Sensex inches towards 29000, Nifty firm; HDFC SBI up 2-3%

10:00

The News International Team

10:50am Brent Crude Update

Oil prices edged up today in a further sign of support around current levels, but analysts fretted that the outlook for the next six months remained bleak due to oversupply.

Oil fell as much as 5 percent on Tuesday after the International Monetary Fund cut its 2015 global economic forecast and key producer Iran hinted prices could drop to USD 25 a barrel without supportive OPEC action.

Prices stabilised on Wednesday, with traders pointing to buying this week whenever benchmark Brent crude oil LCOc1 dropped towards USD 48 a barrel.

Brent was trading at USD 48.44 a barrel at 0413 GMT, up 45 cents from its last settlement, while US crude CLc1 was up 48 cents at USD 46.95 a barrel.

But analysts said they expected low prices to continue for the next half-year, reports Reuters.

10:25am FII View

There can be sizeable job creation even without large capex spends, says Adrian Mowat of JP Morgan. He says the government needs to improve the business environment and that itself will encourage many companies to add to their workforce.

In an interview with CNBC-TV18, Mowat said things are improving on the macro front, but in absolute terms, the pace is still not satisfying.

On the Budget, Mowat feels the government should not be worried about a higher fiscal deficit, and should instead concentrate on narrowing revenue deficit.

“Let’s have a bigger fiscal deficit, but a lesser revenue deficit,” Mowat said, adding that the government should borrow more now that interest rates were cooling, and also because of weak crude prices.

“Borrow more, but spend wisely; invest in infrastructure,” Mowat said.

10:00am Market Check

Equity benchmarks extended gains for the fifth consecutive session today as the Sensex is inching towards 29000 supported by banking & financials and select technology stocks.

The index climbed 153.45 points or 0.53 percent to 28938.12 and the Nifty rose 41.60 points to 8737.20. The broader markets gained half a percent too. Two shares advanced for every share declining on the Bombay Stock Exchange.

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,” he adds.

Housing finance company HDFC rallied another 3 percent today, in addition to 6 percent gains seen yesterday. Public sector lender State Bank of India jumped over 2 percent while its rivals ICICI Bank and HDFC Bank gained 0.5 percent each.

Larsen & Toubro, Maruti Suzuki, Bharti Airtel and Bajaj Auto advanced 1-1.5 percent whereas Tata Motors and Sesa Sterlite lost 1-2 percent on profit booking. Reliance Industries and ONGC declined half a percent each.

ITC erased early gains, falling 0.2 percent ahead of Q3 earnings. A CNBC-TV18 poll expects 12.6 percent growth in profit at Rs 2,686 crore and 11.7 percent growth in revenue at Rs 9,744 crore for the quarter.

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