The News International Team
09:40am Morgan Stanley on Jubilant: Brokerage house Morgan Stanley has retained its ‘underweight’ rating on Jubilant Foodworks, citing increased competition, lack of innovation and high prices of its pizzas as the key reasons.
Morgan Stanley’s assessment is based on a consumer survey conducted by it.
“Moderation in SSG is not entirely macro driven–increased competition and lack of innovation are factors that may have contributed to the current trend of sluggish sales,” said the Morgan Stanley note to clients.
The brokerage has trimmed its FY16 earnings per share forecast for the company to Rs 19.9 from Rs 20.6, and says this is 29 percent below consensus estimates in the broking industry.
09:15am Market Check
The market opened marginally higher on Wednesday, taking support from stocks like pharma, FMCG and banks. The Sensex rose 73.99 points to 28235.71 and the Nifty climbed 25.95 points to 8568.90.
About 312 shares have advanced, 99 shares declined, and 98 shares are unchanged on the BSE.
Sun Pharma and Ranbaxy Labs gained more than 1 percent as Sun said merger of Ranbaxy with company has been consummated.
Tata Motors, Dr Reddy’s Labs, NTPC, BHEL, Lupin, Cairn India and Hindalco advanced more than 0.5 percent while Bharti Airtel, Wipro, GAIL, Coal India, Reliance Industries, NMDC, Jindal Steel, Power Grid Corp and Bank of Baroda declined.
The Indian rupee has opened marginally lower at 62.32 per dollar today against previous day’s closing value of 62.26 a dollar.
The US dollar rebounded against the euro on persistent bullish sentiment toward the greenback. The euro slipped below 1.10 to the dollar.
NS Venkatesh of IDBI Bank said, “The currency market today is expected to take cues from the month-end demand from importers which could put some pressure on the rupee. The rupee is expected to trade between 62.20-62.40/dollar today.”
Overnight, US indices closed weak for the second successive session Tuesday. Macro indicators like inflation and housing sales data pointed to further strengthening of the economy, and stoking expectations that the Fed may hike rates ahead of schedule.
Asian shares were mixed, with Japan, Singapore and Korea slightly higher, and Hong Kong and Taiwan trading down.