The News International Team
9:55 am Market outlook: The way the market is positioned, it is clear that 9000 is just a milestone along the way, says CK Narayan of Growth Avenues.
“We will be achieving higher milestones this year. I am extremely bullish on the prospects of the market,” he told CNBC-TV18. He sees Nifty at 11000 by this year-end. As far as this Budget goes, there is no cause for concern, he says. For a while, the Budget was being pointed to as a probable cause for a big drop in Nifty, it in fact has removed the probability of it happening, he adds.
In the private banking space, he says there is a clear shift of preference. The patronage has shifter from ICICI Bank to Axis Bank and Kotak Mahindra Bank. He believes Jubilant Foodworks is a better buy than Just Dial.
9:30 am Buzzing: Shares of Mahindra & Mahindra slipped 3 percent intraday after its February sales number was disappointing. The auto manufacturer reported 10 percent decline in total sales at 38,033 units in February. It had sold 42,166 units in the same month last year, the company said in a statement.
In domestic market, M&M’s sales declined by 11 percent to 34,918 units last month as against 39,338 units a year earlier.
However, exports were up 10 percent at 3,115 units from 2,828 units in the same period a year earlier. Sales of passenger vehicles, including Scorpio, XUV 500, Xylo, Bolero and Verito stood at 18,103 units compared with 19,308 units in February 2014, down 6 percent.
Four-wheeler commercial vehicle sales fell by 19 percent to 11,928 units last month against 14,701 units in year-ago period, M&M said.
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The market has opened flat. The Sensex is down 34.04 points at 29425.10 and the Nifty is down 17.55 points at 8939.20. About 492 shares have advanced, 215 shares declined, and 100 shares are unchanged.
Sun Pharma, HDFC, TCS, Reliance and Cipla are top gainers in the Sensex. Coal India tanks 5 percent, while M&M, Tata Motors, Axis Bank and ITC are laggards.
The Indian rupee opened flat at 61.89 per dollar versus 61.87 Monday.
The dollar edges higher against a basket of major currencies, touching an 11-year high despite soft economic data. Euro slips to 1.11 levels.
Ashutosh Raina of HDFC Bank said, “The dollar index is trading near a 11-year high and the markets will be keenly awaiting the US jobs report this week. Despite the strength seen in the dollar, the USD-INR has settled below 62/dollar and should continue trading in the 61.50-62.50/dollar range.”
Meanwhile, on the macro front India formally joins the ranks of inflation targeting countries. President signs landmark monetary policy agreement with the Reserve Bank of India (RBI) ordering central bank to keep inflation below 6 percent next year and around 4 percent for all subsequent years.
Among global markets, in the US, stocks closed higher yesterday, with the Nasdaq above the psychologically key level of 5,000 for the first time since March 2000 and the Dow and S&P 500 at records as investors cheered US economic data and an interest rate cut in China.
In Europe, equities closed lower as a fall in oil price once again hit investor sentiment. Asian stocks were modestly higher this morning but were not displaying the same exuberance that was seen on the Wall Street. Nikkei was at 15 year highs with dollar-yen trading near a two-and-a-half-week high of 120.1. Kospi index opened at a new five-month high.
Among commodities, Brent crude posted its biggest drop in a month yesterday, down 5 percent. Speculation that a nuclear deal could lift Iran’s sanctions and boost its exports stoked supply concerns.
In precious metals space, gold prices slip marginally to USD 1207 per ounce.