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Sensex, Nifty consolidate ahead of IIP, CPI data; Midcap up


The News International Team

10:59am Market Expert

Independent market expert Dhiraj Agarwal sees a high risk of correction post-Budget. According to him, the Nifty may even break 8000 support, slipping to 7500 level, if the Budget disappoints. However, on the upside he sees the index breaking 9000 on a satisfactory verdict.

The market needs public spending at this point, said Agarwal, adding that India looks solid from a 3-year horizon, but the investment cycle needs to pick up. He remains bullish on IT.

10:30am Buzzing Stocks

Power Grid gained 1.5 percent after reporting strong numbers with total income up 18.2 percent at Rs 4,354 crore, margin up 170 basis points to 85.9 percent while PAT up 17.9 percent at Rs 1,229 crore. The company continues to deliver strong execution and strong commissioning of assets during last 1 year.

Zee Entertainment rallied 3.5 percent after a large trade was seen on the NSE in which 22 lakh shares changed hands in 6 block deals.

India Cements gained 11 percent after they delivered a good operational performance with margins expanding 170 basis points to 15.7 percent in Q3. Additionally they have approved a proposal for reorganisation of Chennai Super Kings Cricket limited and the ownership of the franchise will be held by shareholders of the India Cements.

Grasim Industries rose 0.9 percent and Aditya Birla Chemicals rallied 3.7 percent after Grasim proposed the acquisition of Aditya Birla Chemicals with a swap ratio of 1 share of Grasim for every 16 shares of Aditya Birla Chemicals held. The swap ratio is favouable for AB Chemicals shareholders. Edelweiss says they are positive on the merger.

Fortis Healthcare climbed 0.9 percent after Rakesh Jhunjhunwala bought over 34 lakh shares in the company yesterday while Claris Lifesciences gained 20 percent on reports of many Indian companies such as Zydus Cadila, Lupin and Cipla along with global majors such as Pfizer being interested in the company’s sterile injectibles business.

10:00am Market Check

The market remained in a consolidation mode ahead of December industrial output and January CPI data (to be announced later today). The broader markets outperformed equity benchmarks with the BSE Midcap and Smallcap indices gained 0.8 percent each.

The Sensex fell 22.71 points to 28511.26 and the Nifty rose 3.35 points to 8630.75. More than two shares advanced for every share declining on the Bombay Stock Exchange.

The January consumer price index (CPI) data will be the first CPI data on a new base. The government has revised the CPI data base year from 2010 to 2012 couple of weeks ago due to which there are varied expectations. The CPI data for January is likely to be in the range of 5.3 to 5.8 percent on the upside against 5 percent reported in December.

The index of industrial production (IIP) data for December may come in at around 1.8 to 2 percent against 3.8 percent on a month-on-month basis, according to a CNBC-TV18 poll.


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