The News International Team
1:50 pm Buzzing: Shares of Jindal Steel & Power surged 19 percent as it won Gare Palma IV/2 &3 at Rs 108 per tonnes in the ongoing coal e-auction.
1:30 pm Market outlook: The reality of the market right now is that it is way ahead of itself, says Vibhav Kapoor of IL&FS.
Kapoor says the corporate earnings for Q3 have been disappointing and despite that stocks are seeing higher levels. He further adds that the market is extremely expensive with stocks trading at high valuations like cement companies that are trading 25 times FY16 earnings.
Furthermore, Kapoor is also wary of the market as he expects below 10 percent returns from equities in the next 12 months.
However, a 5-7 percent rally in the market will make a case for asset reallocation, he adds. Kapoor also investors to reduce the weightage to economy related cyclical stocks as the macros aren’t seen to be improving significantly.
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The market is still in red as the Sensex is down 77.50 points at 29242.76. The Nifty slips 34.60 points at 8834.50. About 1147 shares have advanced, 1506 shares declined, and 205 shares are unchanged.
Tata Steel, M&M, Infosys, HDFC and TCS are top gainers in the Sensex. Among the losers are Tata Power, NTPC, ICICI Bank, Axis Bank and Wipro.
Taking positive cues from global markets, gold prices rose sharply by Rs 233 to Rs 26,370 per 10 grams in futures trade today as participants created speculative positions.
Analysts said the rise in gold prices at futures trade was mostly due to a firming trend overseas after minutes from the Federal Reserve’s January meeting signalled many officials were inclined to keep interest rates near record lows for longer.