The News International Team
11:30am FII View: Jan Dehn, Head-Research, Ashmore Investment Management is not perturbed by the intense sell-off in Indian equities. The Indian story is far from over, he tells CNBC-TV18 in an interview adding government spending, particularly in infrastucture, will make Indian equities attractive again.
Indices can rise as much as 10 percent in 12 months on policy actions and if GST is implemented one can expect 24 percent return on investments within 2 years, he said.
While advising investors to continue accumulating on dips as the market is poised to go up, Dehn revealed he likes cyclicals and financials where he sees a lot of value.
“See value in downstream oil companies and industrials as well,” he said while warning one to cut exposure to healthcare and defensives. He finds the government support to Gas-fed power stations a big positive for the energy sector.
11:00am Market Check
The market gained marginally amid consolidation after yesterday’s steep fall. The 30-share BSE Sensex rose 83.70 points to 27541.28 and the Nifty climbed 16.50 points to 8358.65.
About 1106 shares have advanced, 1088 shares declined, and 145 shares are unchanged on the BSE.
From the frontline stocks, the new Nifty additions continued to be in focus. Idea Cellular and Yes Bank added in the Nifty while JSPL and DLF excluded and added into the CNX Midcap index along with Dewan Housing, Marico and Wockhardt.
Idea Cellular was in focus also on account of the details emerging from the telecom auctions. Idea was the highest spender at Rs 30,306 crore. Apart from this, Bharti Airtel spent Rs 29,310 crore with Reliance Communications from the listed space shelling out Rs 4,299 crore. Macquarie says given the biggest overhang related to spectrum auction is behind, they have increased their target price for both Bharti and Idea Rs 460 and Rs 215, respectively.
Despite its exclusion from the Nifty, JSPL jumped 5 percent. The Delhi High court raised an eyebrow over the government’s decision to cancel coal block bids from JSPL and BALCO yesterday calling the move unfair and asking the government what changed its stance on the possibility of carterlisation and also on why a re-auction has not been considered.
IT stocks saw a fillip as Accenture released a solid set of numbers, raising 2015 guidance to 8-10 percent from 5-8 percent earlier. Nomura read the results as a positive for India IT from a demand perspective. They prefer HCL Technologies, TCS and Tech Mahindra. Infosys surged 3 percent and TCS gained 1.5 percent.
L&T climbed nearly 2 percent on winning orders worth Rs 1,711 crore in the month of March.
However, HDFC, ITC, Reliance Industries, Dr Reddy’s Labs, Sun Pharma, Mahindra & Mahindra, Bharti Airtel and HUL dropped 1-2 percent.
From the broader markets, Cadila Healthcare gained 1 percent as the company is going to acquire 50 percent stake in Zydus BSV Pharma from its joint venture partner Bharat Serums.
Pipavav Defence rose 1.6 percent as its debt restructuring was approved by lenders which will include around Rs 150-160 crore of promoter funding and includes Rs 4,500 crore of fresh funds. Adhunik Metaliks gained 3 percent ahead of the board meet today where it will consider the composite debt restructuring sanctioned by CDR Empowered Group.