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Sensex, Nifty consolidate; HUL up 2%, ONGC falls 2%

11:00

The News International Team

11:5 am Betting big? Investors are really excited about India post election outcome, said Kirti Doshi of Antique Stock Broking. He feels the results of recent government steps will be visible in 6-9 months. Speaking to CNBC-TV18 on the sidelines of Antique Investor Conference, both Doshi and Dharmesh Dalal, Co-Head, Equities, said the structural changes in the economy are seen at grassroots level and may start reflecting in earnings too in the next 2-3 quarters. Among sectors Antique is positive on infra, capital goods and autos. It expects financials to continue to lead the market and sees SBI to be the biggest beneficiary of turnaround in economy. The broking firm is bullish on HDFC Bank , ICICI Bank and Canara Bank .

11:45 am Result analysis: Macquarie has upgraded Wockhardt to outperform from neutral with a revised one-year target of Rs 1700 (from Rs 410) per share. The shares jumped 2.5 percent intraday on Thursday after it posted firm December quarter results. The stock was jump around 10 percent in yesterday’s trade. 

The brokerage has also increased FY15/16E EPS to Rs58/65, an increase of 120/110 percent respectively, driven largely by higher UK sales. It states that Wockhardt has more than doubled its field force over the last 2-3 years. New product launches and increasing productivity of sales should help drive high-teen growth in the market going forward, feels Macquarie.

The brokerage had a cautious view on the stock for past year, awaiting better visibility regarding regulatory issues and future approvals but Form 483 issued by the US FDA in early 2014 on the Morton Grove US facility has now been resolved, which provides significant comfort around the sustainability of the remaining US business.

11:30 am Outlook: Market expert Udayan Mukherjee believes the fall in the market could have had a darker red hue had it not been for the most important financial event – the Budget.

Mukherjee says the Budget trigger is proving a strong support for Nifty, which is trading ahead of itself. He says a 200-300 points correction would have been just fair given the way the corporate earnings have disappointed.

Mukherjee believes the immediate trigger- the Delhi elections is not in essence an important event but the results of the same could have contrarian impact on the street.

“If the BJP comes to power, it will rekindle the market’s sentiment and Nifty could rally beyond 9000. But if the AAP wins the elections, it will give the market a reason to sulk,” he adds. On the earnings season, Mukherjee is hopeful of seeing better cumbers from companies in the next two quarters. He believes it will take that long for the government’s actions o bear fruit. 

But on the more immediate trigger, Mukherjee says the market may see a 10 percent fall if the

Don’t miss: How to trade Bharti Airtel post tepid December quarter nos?

The market is consolidating with the Nifty hovering around 8750 levels. IT stocks support while banks continue to weigh. The Nifty is up 27.50 points at 8751.20 and the Sensex is up 115.24 points at 28998.35. About 1237 shares have advanced, 1028 shares declined, and 197 shares are unchanged.

Wipro, Axis Bank, HUL and Infosys are top gainers in the Sensex. Among the losers are Tata Power, ONGC, GAIL, M&M and Sesa Sterlite.

Globally, Asian markets are mixed. China is higher as the People’s Bank of China reduced the reserve requirement by 50 bps, the first cut in 2 years. However, volatility in oil prices and worries about Greek debt after the European Central Bank banned the use of Greek government bonds as collateral weighs.

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