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Choppy Sensex, Nifty trade lower; Mid Smallcap outperform

14:00

The News International Team

02:30pm Market Expert

Kamlesh Rao, CEO of Kotak Securities believes the government will work towards reducing the fiscal deficit, which is a key factor for any government.

“With the need to increase consumption demand, there will be a relook at the personal and corporate taxation rates. A focus on kicking the capex cycle which is the big stimulus required for sustained economic growth. Inverted tax laws will hopefully find correction to realize the “Make in India” plan of the government,” he says.

“At 8900-9000 certainly one cannot act on short term view as the markets are going to remain volatile on the back of internal or external news flow but in the next 12 to 18 months of time we are expecting steady and positive indications. Down side is limited to 8000 as per Nifty and 27000 as per Sensex.  On the higher side, we are expecting 25 percent to 30 percent returns in next 12 to 18 months of time,” Rao adds.

02:00pm Market Check

The market continued to see selling pressure in afternoon trade, dragged by index heavyweights like Reliance Industries, ICICI Bank, HDFC, Infosys and L&T.

The Sensex declined 101.13 points to 29361.14 and the Nifty slipped 25.55 points to 8869.75. However, the broader markets saw buying interest as the BSE Midcap and Smallcap indices gained 0.3 percent and 0.6 percent, respectively.

About 1455 shares have advanced, 1299 shares declined, and 202 shares are unchanged on the Bombay Stock Exchange.

Nirmal Jain, chairman, IIFL said it is unlikely to see a big rally or crash in market till Budget. He believes the government is moving in the right direction and all circumstances are conducive for a ‘historic’ Budget.

Jain also said that Budget is not the only criterion to judge the big-ticket reforms taken by the government as it is taking lot of efforts to push through the goods and services tax (GST) which is set to get implemented from 2016 onwards. 

Reliance Industries topped the selling list, falling nearly 3 percent followed by ICICI Bank, HDFC, Infosys, Bharti Airtel, Tata Power and Wipro with 1-1.7 percent loss. L&T, Maruti and HUL declined over half a percent.

JSPL continued to be in focus after it failed to qualify to bid for the Gare Palma IV/1 coal block. The management, however, told CNBC-TV18 that their strategy for the auction is non-aggressive and they didn’t want to exceed their quoted price for the coal block.

However, BHEL was the biggest gainer on Sensex, up 4 percent. ITC, Tata Motors, TCS, State Bank of India, M&M, Dr Reddy’s Labs, Tata Steel and Hindalco Industries climbed 0.7-1 percent.

In global data, markets in Europe opened lower by 0.5 percent amidst continued uncertainty over Greece. On data front, German producer prices showed further fall in January, leading to increased fears that region is falling into a deflationary spiral.

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