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Sensex, Nifty volatile; HCL Tech spikes, Coal India plunges

Equity benchmarks erased all its early gains to trade lower amid consolidation. Indices had touched record highs in opening trade but could not sustain.

10:00

The News International Team

10:30am FII View

The News International Team

Ridham Desai, Morgan Stanley says industrials is the best sector to buy on declining short rates.

“Financials and consumer discretionary are other ways to play this theme. We are overweight these three sectors,” he says.

“Chetan Ahya, our India economist, believes that 2015 marks the beginning of a big rate cut cycle with a cumulative rate cuts of 150 basis points. This will likely mark the start of a new earnings cycle,” says Desai.

He says the brokerage expects an earnings CAGR of 24 percent from FY15-17. “In our view, the forthcoming rate cut cycle mirrors the cycle of 2000-04. Industrials, banks and consumer discretionary were the best-performing sectors in that period as well. Further, we believe that companies with high operating and financial leverage will benefit as growth recovers and interest rates fall,” he adds.

10:00am Market Check

Equity benchmarks erased all its early gains to trade lower amid consolidation. Indices had touched record highs in opening trade but could not sustain. The 30-share BSE Sensex fell 94.23 points to 29587.54 and the 50-share NSE Nifty declined 22.25 points to 8930.10.

However, the broader markets outperformed benchmarks with the BSE Midcap and Smallcap indices rising half a percent each. About 1176 shares have advanced, 794 shares declined, and 207 shares are unchanged on the Bombay Stock Exchange.

Private banks, FMCG and oil stocks dragged the market down while technology and capital goods stocks led the support.

HCL Technologies rallied 9 percent following stellar performance of the company in Q2 earnings. Profit grew 2.3 percent sequentially to Rs 1,915 crore and dollar revenue rose 4 percent to USD 1.49 billion during October-December quarter.

Coal India plunged 3 percent as the government will sell up to 10 percent equity stake in the company via offer for sale today. It has fixed floor price at Rs 358 apiece as against Thursday’s closing price of Rs 374.95.

09:15

Record high opening: Nifty races towards 9000, Sensex firm

The Indian rupee has opened at 61.79 per dollar, up 7 paise compared to previous day’s closing value of 61.86 a dollar.

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