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Sensex, Nifty consolidate; HUL, Sun Pharma gain 2%


The News International Team

11:45 am Inflation: In a major boost to India’s sovereign outlook, Moody’s on Thursday said the new ‘inflation targeting’ mechanism is a “credit positive” move and it would make RBI’s monetary policy tools much more effective.

Under the new ‘inflation targeting’ mechanism, the government has mandated RBI to bring down inflation to below 6 percent by January 2016 and then target a level of 4 percent by March next year. RBI will have to explain the reasons if such targets are not achieved.

Moody’s said that the new mechanism would increase the predictability and effectiveness of RBI’s monetary policy, while the effectiveness of its monetary tools would increase because ‘inflation targeting’ would take into account future — rather than past– price trends.

“Quantitative inflation targeting will foster transparency and predictability in monetary policy, as capital market participants, businesses and the public understand the drivers of central bank actions,” Moody’s Investors Service Associate Analyst Shirin Mohammadi said, adding that the move was “credit positive” for India.

11:30 am Buzzing:  Dewan Housing Finance Corporation (DHFL) said it has raised Rs 809.61 crore by issuing shares to institutional investors.

The company said it has issued and allotted 1,69,31,102 equity shares to the Qualified Institutional Buyers (QIBs) at a price of Rs 478.18 per equity share, including a premium, aggregating to Rs 809.61 crore.

In a regulatory filing, DHFL further said that its paid-up equity capital has increased to Rs 145.67 crore consequent to the allotment of shares to the QIBs. The finance committee of the company had approved the issue and allotment of shares to the QIBs at a meeting held yesterday.

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The Sensex is up 36.68 points at 29417.41 and the Nifty is up 5.00 points at 8927.65.
About 1224 shares have advanced, 1083 shares declined, and 170 shares are unchanged.

HUL, Cipla, Sun Pharma, Wipro and Dr Reddy’s Labs are top gainers in the Sensex. Among the losers are Hindalco, ICICI Bank, Tata Steel, GAIL and NTPC.

Globally, Shanghai markets trade lower as China lowered growth target to 7 percent for 2015 this will be the lowest growth target in 11 years down from the 7.5 percent last year. Crude oil futures prices rose by 1.85 percent to Rs 3,359 per barrel today as speculators created positions amid a firm trend in Asia.

Marketmen said the rise in crude oil futures was largely in tandem with a firming trend in Asian trade, as signs that refineries’ strike in the US is weakening, overshadowed a rise in US crude stocks. Meanwhile, West Texas Intermediate crude prices advanced by 29 cents to USD 51.82, while Brent gained six cents to USD 60.61 a barrel respectively in late morning trade on the New York Mercantile Exchange.

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