The News International Team
9:55 am Market outlook: The market has been rather volatile in the run up to the Budget. But despite that Taher Badshah of Motilal Oswal AMC advises investors to buy into every correction. From the point of view of the Budget, there is this expectation that it will be a path-breaking one, he says. But according to him, if finance minister Arun Jaitley just keeps to some of the ideas that he had initiated in July – whether it is the ‘Make in India’ campaign or smart cities or on the personal taxation front and provide more teeth to these programmes – it should be good enough. It will be well accepted by the market, especially if it is accompanied with correcting fiscal imbalances.
Even prior to the run up to the Budget, Motilal Oswal AMC had positions in the industrial space, especially logistics. It is currently happy to add on to the space. Badshah says the company built into these positions over the last one month as well. “There is an attempt to realign portfolios in favour of infrastructure, rate-sensitive companies that more dependent on economic recovery,” he told CNBC-TV18.
9:45 am Exclusive: MCX is hoping that the commodity transaction tax will be removed in the upcoming Union Budget, according to PK Singhal, Deputy Managing Director.
In an interview with CNBC-TV18, Singhal says Taiwan is the only other country which levies a CTT. He says commodity trading volumes have come down significantly since the imposition of CTT, and this is also leading to grey market transactions in which the government gets no revenue at all.
Average daily turnover on MCX has fallen from Rs 50,000 crore to Rs 30,000 crore since CTT was introduced, Singhal says. MCX has regained the market share it lost in the aftermath of the scam at NSEL, Singhal says.
9:30 am Buzzing: Godrej Consumer is up 1 percent as the FMCG firm hiked its stake in hair extension brand Darling South Africa and Mozambique businesses to 90 percent. “The company has entered into an agreement with the Darling Group for increasing its shareholding in Darling South Africa and Mozambique businesses to 90 percent in line with its intent of gradually scaling up its ownership of the Darling businesses,” GCPL said in a BSE filing. It has been acquiring brands, specially in Africa, mostly targeting local firms in emerging markets.
Don’t miss: Gold bounces off 7-week low as Yellen flags flexibility
The market has opened with some strength ahead of F&O expiry tomorrow. The Sensex is up 151.63 points at 29156.29, and the Nifty is up 46.25 points at 8808.35. About 649 shares have advanced, 146 shares declined, and 119 shares are unchanged.
Sesa Sterlite, Tata Power, SBI, M&M and ONGC are top gainers in the Sensex.
The Indian rupee gained in the early trade. It has opened higher by 20 paise at 62 per dollar versus 62.20 Tuesday.
The dollar edges lower against the yen and euro early after Federal Reserve Chair Janet Yellen held back from giving a clear view on when the Fed may begin raising interest rates.
NS Venkatesh of IDBI Bank said, “Rupee closed stronger at 62.20/dollar yesterday. Today the market is expected to trade a little weak due to month-end importer demand. The rupee is likely to trade in a range of 62.10-62.30/dollar.”
Globally, the US markets closed the trading day at 15-year highs after the US Federal Reserve Chairman Janet Yellen said the central bank will remain patient on rate hikes.
Asian trade is mixed with Japan’s Nikkei relatively under performing as the dollar-yen fell closer to the 118 levels.
In other asset classes, Brent Crude slipped to USD 58 per barrel and precious metal gold edged marginally higher after Yellen’s comments on considering any hike on a “meeting-by-meeting basis.”