Home / Business / Money / Nifty above 8800, Sensex firm ahead of RBI policy; SBI up

Nifty above 8800, Sensex firm ahead of RBI policy; SBI up

09:15

The News International Team

9:55 am Result poll: Hero Motocorp’s third quarter profit is expected to increase 31 percent year-on-year to Rs 689 crore, according to the average of estimates of analysts polled by CNBC-TV18. However, overall analysts expect a weak performance from the company in December quarter. Revenue is seen falling 1.3 percent to Rs 6,785 crore in Q3FY15 from Rs 6,876.8 crore in the year-ago period. After a strong show in April-September period of FY15, volumes declined 2 percent year-on-year to 16.48 lakh units in Q3FY15. Domestic volumes slipped 5 percent to 15.71 lakh units due to overall weak sentiment and drop in rural economy.

9:40 am Buzzing: Shares of Videocon Industries surged over 15 percent in early trade after it announced petroleum discovery in Brazil by a consortium.

“The accumulation is part of the Sergipe-Alagoas Basin ultra-deep water exploratory project, as provided for in the 2014-18 business and management plan.The well 3-SES-186 is currently under further drilling to the target depth of 6060 meters, at water depth of 2467 metres,” Videocon said in a statement issued to BSE.

This is largest discovery of petroleum by the consortium this year. The consortium includes Petrobras, BPCL and Videocon.

9:30 am Rate cut? The Reserve Bank of India will announce its credit policy on February 3 after governor Raghuram Rajan surprised the street with an out of turn repo rate cut of 25 bps on January 15, 2015 on the premise that inflation number has come down and would remain largely range bound in the next few months. Against this backdrop, is there a scope of further rate cut tomorrow? A CNBC-TV18 poll of the bankers and economists suggests only 10 percent of the respondents are still looking forward to another rate cut of 25 bps, but the majority believes the rates will remain unchanged this time, but the governor may act post the Union Budget. A 55 percent respondents expect the RBI to announce three more rate cuts in 2015 taking repo to 7 percent by the end of the year; 35 percent expect only two more cuts this year while 10 percent see only one more cut coming their way.

Don’t miss: In CIL stake sale LIC bought almost 50% of shares on offer

After a few days of losing, the market has rose again ahead of Reserve Bank of India credit policy review today. The Sensex is up 114.54 points at 29236.81 and the Nifty is up 31.45 points at 8828.85. About 537 shares have advanced, 92 shares declined, and 146 shares are unchanged.

Sesa Sterlite, SBI, GAIL, Axis Bank and ONGC are top gainers in the Sensex. Among the losers are Dr Reddy’s Labs, Bajaj Auto, HDFC Bank, Wipro and TCS.

The Indian rupee gained in early trade. It has opened higher by 18 paise at 61.62 per dollar versus 61.80 Monday.

The dollar holds steady against the yen and euro. Meanwhile the Canadian dollar and Norwegian crown held onto strong gains following a rebound in oil prices. Abheek Barua, Consultant at ICRIER, feels the Reserve Bank should cut rates in today’s policy as inflation has seen a dramatic decline. Stating that stage is set, Barua expects a 25-bps rate cut in today’s credit policy. He sees January CPI at around 5.6 percent to 5.7 percent.

Global cues, meanwhile, are positive with the US markets rallying with the Dow rising 200 points on encouraging news from the eurozone and stronger oil prices. Major European indices closed higher after a volatile day of trading. Greek stocks rallied upto 5 percent , as its new left-wing government began on to persuade its eurozone partners to create a new debt agreement with the country. Despite a positive handover from the US and European markets, Asian markets are trading with a mild negative bias.

Leave a Reply

x

Check Also

Rupee recovers 6 paise to 67.01

The rupee today recovered some lost ground by rising 6 paise to ...

Notes ban to have positive impact on economy

NEW DELHI: The government’s demonetisation move has led to widespread adoption of ...