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Nifty hovers around 8850; Midcap, Smallcap outperform

10:00

The News International Team

10:50pm Market Expert

Ahead of the much-awaited Budget over the upcoming weekend, the market is expected to remain volatile over the next few days, is the word coming in from Sanjay Dutt, director, Quantum Securities. At the moment, the market is at the upper end of the trading range, he says.

As expected, there will be a lot of noise in the run up to the Budget. But Dutt does not expect major changes on the tax front in the Budget. “The Budget needs to be a radical, out-of-the-box type of a Budget,” he told CNBC-TV18. If it indeed turns out to be a Modi Budget, or if finance minister Arun Jaitley truly manages to deliver, there will be a big rally in the market, he adds.

As far as the Railway Budget goes, all positives that may come from it are already priced in, he says. Certain core issues have been plaguing the Railways for many years now and if Suresh Prabhu has to bring the railways back on track, there is a need for some radical decisions on that front as well.

Coming back to the markets, despite most investors increasing their IT play, Dutt says he will not be doing the same. According to him, IT is a crowded trade right now. He infact advises investors move money from the IT sector to some of the riskier assets and to buy banks on every dip. He sees the Nifty hitting 9500-9800 in the next 12 months.

10:20am Gold Update

Gold hovered around the key USD 1,200-an-ounce level today, its lowest in seven weeks, as support for the safe-haven metal eased after a deal was struck over Greece’s debt, while the absence of major consumer China also took a toll.

Spot gold was little changed at USD 1,202.10 an ounce by 0225 GMT, after dropping to USD 1,197.95 in the previous session as safe-haven bids receded. The metal recorded its fourth straight weekly decline on Friday.

Eurozone finance ministers reached an agreement to extend heavily indebted Greece’s financial rescue by four months, officials on both sides said.

The deal removes the immediate risk of Greece running out of money next month and possibly being forced out of the single currency area, reports Reuters.

10:00am Market Check

The market remained firm with the Nifty hovering around 8850. Private banks, FMCG, technology, metals and healthcare stocks while heavyweights like HDFC, Reliance Industries were under pressure.

The Sensex rose 71.45 points to 29302.86 and the Nifty advanced 17.75 points to 8851.35. The broader markets outperformed benchmarks with the BSE Midcap and Smallcap indices rising 0.4-0.6 percent.

Nearly two shares advanced for every share declining on the Bombay Stock Exchange.

Hindalco Industries topped the buying list, up 1.7 percent on getting Gare Palma IV/4 coal block at Rs 3,001 per tonne in coal auction. Sesa Sterlite was up over a percent as its subsidiary BALCO won Gare Palma IV/1 coal block at Rs 1,585 per tonne and the company also proposed its name change to Vedanta.

Infosys, ICICI Bank, L&T, ITC, TCS, HDFC Bank, HUL, Wipro and Cipla gained 0.3-1 percent. GAIL, Bajaj Auto and Tata Steel fell more than 1 percent followed by HDFC and Reliance Industries with 0.4 percent loss.

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