The News International Team
09:55am Market Update: The Sensex is down 56.50 points at 28413.17, and the Nifty down 23.65 points at 8611.00.
About 688 shares have advanced, 1073 shares declined, and 116 shares are unchanged on the BSE.
09:50am Macquarie on BHEL: Macquarie has maintained an underperform rating on BHEL but increased target price to Rs 179 per share. It has also cut order inflow by 8 percent and earnings estimates on growing concerns that given disappointing order inflows, execution should continue to remain lacklustre while fixed cost pressures especially staff costs beginning Q4FY16 may curtail any significant margin recovery.
“We believe street expectations of a 200 basis points margin recovery in FY17 will not come through as operating leverage on account of higher revenue would get negated by the sharp increase in employee cost (15 percent) due the 7th pay commission,” it says in a report.
The brokerage has slashed earnings by 17-35 percent for FY15-16 mainly due to lower revenue growth and EBITDA margin.
09:35am Market Expert: The long funds are coming into the market and building positions, says Deven Choksey of KR Choksey Shares and Securities.
The market is facing discomfort on two counts – dollar gaining strength and bond yields moving in a direction opposite to rate cuts, which is resulting in a selloff in every rally, he says. Also, once the rupee starts depreciating against the dollar, the reading funds will start selling, he adds.
09:15am Market Check
The market opened lower on Friday following weakness in global peers. The Sensex fell 126.80 points to 28342.87 and the Nifty declined 43.30 points to 8591.35.
About 470 shares have advanced, 576 shares declined, and 107 shares are unchanged on the BSE.
Wipro, Sun Pharma, Tata Power, Coal India, Cipla, Lupin and Dr Reddy’s Labs gained 0.5-1 percent. However, NTPC tanked 7 percent as the stock adjusted for debentures bonus issue.
Tata Motors, HDFC, M&M, GAIL and Grasim lost 0.7-1.5 percent.
The Indian rupee opened flat at 62.51 per dollar today against previous day’s closing value of 62.52 a dollar.
The dollar rose broadly as investors remain bullish on the greenback, it is currently above the 99 mark.
Pramit Brahmbhatt of Veracity said, “Local equity market is likely to trade sideways today and will take cues from global markets for further directions. The ongoing strength in dollar may force rupee to depreciate. Range for the day is seen between 62.20-63/USD.”
The Asian markets were lower on the back of a weak overnight handover. Kospi has shaved off a tad bit from six-month high.
In the US, stocks closed mixed as investors eyed options expirations and weighed the Federal Reserve statement that indicated a rate hike would come gradually.
European equities closed mixed as investors reacted to a dovish statement from the Fed. FTSE digested the annual UK Budget statement presented by finance minister George Osborne.
In the currency space, dollar rose broadly as investors remained bullish on the greenback. In commodities, crude slipped on a rebounding dollar and Kuwait’s stance that OPEC had no choice but to keep producing in an oversupplied market.
From precious metals space, gold rose to 1170 dollars an ounce, following a more cautious than expected interest rate statement from the Fed.