The News International Team
9:50 am Market outlook: State-owned banks should deliver good returns froma 18-24 month time horizon, feels Krishna Kumar Karwa of Emkay Global Financial Services. In general, he expects banking and financial services stocks to continue their outperformance streak.
In an interview with CNBC-TV18, Karwa says globakl liquidity is expected to remain strong because of the ECB’s monthly bond purchases going forward. And while there is good momentum globally, Indian shares could see some amount of volatility.
Karwa expects the market to deliver returns of 12-15 percent this year, and says there is a possibility of the RBI again cutting interest rates at its policy review on February 3. He sees the central bank cutting rates by 75-100 basis points over the next 12 months, and expects the capex cycle to pick up as a result.
9:40 am Poll: Maruti’s third quarter profit is expected to jump 29 percent year-on-year to Rs 875 crore, according to the average of estimates of analysts polled by CNBC-TV18. Revenue is seen going up 13.4 percent to Rs 12,352 crore in the quarter ended December 2014 from Rs 10,893.8 crore in the year-ago period, driven by better volume growth. The India’s largest car maker sold 3.23 lakh units during the quarter, up 12 percent compared to 2.88 lakh units sold in the same quarter last fiscal. Operating profit may climb 19 percent on yearly basis to Rs 1,615 crore and margin may expand 140 basis points to 13 percent in the quarter gone by.
9:34 am Market check: The market has picked up pace as the Sensex is up 107.47 points at 29386.31. The Nifty is up 13.75 points at 8849.35. About 1015 shares have advanced, 570 shares declined, and 201 shares are unchanged.
Tata Motors, BHEL, Cipla, L&T and Tata Power are top gainers while Dr Reddy’s Labs, Hindalco, Infosys, Bajaj Auto and Coal India are laggards.
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The market climbed more than 150 points on the Sensex but could not sustain gains for long. The Sensex rose 33.65 points to 29312.49 while the Nifty fell 6.55 points to 8829.05.
About 621 shares have advanced, 293 shares declined, and 187 shares are unchanged on the Bombay Stock Exchange.
BHEL, Cipla, Axis Bank, Tata Motors, Tata Power and ICICI Bank were top gainers in early trade, up 1-2 percent. Maruti Suzuki climbed 0.87 percent ahead of Q3 earnings.
However, Hindalco Industries lost 2.59 percent. Dr Reddy’s Labs, Coal India, Bharti Airtel, Bajaj Auto, Ambuja Cements, Sesa Sterlite and Kotak Mahindra Bank were marginally in red.
The Indian rupee opened at 61.50 a dollar, down 8 paise compared to Friday’s closing value of 61.42 per dollar.
Ashutosh Raina, HDFC Bank says the USD-INR currency pair has been trading in 61-62/dollar range with appreciating bias, although the strong suspected RBI intervention has capped the gains so far.
US President Barack Obama’s India trip will end today with him signing off with a town-hall meeting. Addressing the Indo-US CEO summit yesterday, Obama said the US-India economic relationship is defined by untapped potential. He announced USD 4 billion dollars in India- investment & lending deals.
Global cues are positive with the US markets ending with modest gains as investors braced for the FOMC meeting that will begin today.
European markets closed higher, despite opening the session lower, as investors digested news that anti-austerity party Syriza won a general election in Greece on Sunday.
Asian markets too are in the green, hitting fresh highs buoyed by a relatively inspiring handover from Wall Street overnight.
In other asset classes, the euro held onto modest gains, bouncing off an 11-year low as investors decided to take profits on extremely bearish positions. The rouble weakened as Standard & Poor’s cut Russia’s sovereign credit rating to junk status, bringing it below investment grade for the first time in a decade.
Nymex crude is steady above USD 45 per barrel after a three-session fall that dragged prices to near their lowest level in almost six years
And precious metal gold fell 1 percent on Monday to USD 1270 an ounce as traders cashed in gains that took the metal to five-month highs last week.