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Sensex, Nifty gain strength again; ITC in focus, LT up 2%

12:12

The News International Team

The market continued its gains into the fifth consecutive session especially after yesterday’s strong run. The 50-share NSE Nifty traded comfortably above 8700, up 24.20 points at 8719.80.

The 30-share BSE Sensex climbed 122.25 points to 28906.92 whereas the broader markets underperformed benchmarks with the BSE Midcap and Smallcap indices falling 0.3 percent each. About 1116 shares have advanced while 1496 shares declined on the Bombay Stock Exchange.

Adrian Mowat of JP Morgan says investors need to see growth for the India story to continue. He sees 15 percent earnings growth in FY16 and higher rating for India as interest rates are cut.

Mowat wants the Budget to have lower revenue deficit on account of lower subsidies but is okay with a higher fiscal deficit if it is spent on infrastructure.

Shares of HDFC, Larsen & Toubro, State Bank of India, Hindustan Unilever and Bharti Airtel topped the buying list on Sensex, up 2-3.5 percent. However, Tata Motors, ONGC, Cipla, Wipro, Sesa Sterlite, Hindalco Industries and Tata Steel declined 1-2 percent.

ITC fell nearly 2 percent ahead of Q3 earnings. Analysts expect numbers this quarter to be capped at 12-13 percent against a historical range of 15-20 percent. A CNBC-TV18 poll is estimating sales growth of 11.7 percent and profit growth of a little over 12 percent.

Globally, Japan’s  Nikkei widened losses as the Bank of Japan maintained its monetary stimulus of 80 trillion yen per year. FY15 GDP estimates, however, were reduced by the central bank to a decline of 0.5 percent against a growth of 0.5 percent estimated earlier in October. Brent crude traded around USD 48 a barrel while gold traded at 5-month high.

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