The News International Team
11:25am FII View: Marc Faber, editor and publisher of The Gloom, Boom & Doom, said emerging markets have become relatively inexpensive versus developed markets. Investors are now realizing how inexpensive these EMs are and hence more money is flowing in, he added.
He believes Asian markets will perform better than the US over the next 10 years. For the Reserve Bank, he said the central bank’s number one priority right now is currency stability.
According to him, India becoming the biggest economy in the next five years is an overly optimistic view. Though, even if India delivers 4-5 percent growth, it will be better than most countries, he adds.
Also, he does not see the US Fed increasing rates this year unless there is a sharp pick-up in the economy.
11:00am Market Check
The market remained rangebound with the Nifty hovering around 8780 level. Banks, technology and auto stocks saw selling pressure while capital goods, FMCG and select oil stocks gained.
The Sensex advanced 2.62 points to 28882 while the Nifty slipped 0.90 point to 8779.45 while the BSE Midcap index gained 0.6 percent and Smallcap jumped 1 percent. More than two shares advanced for every share declining on the Bombay Stock Exchange.
Asian markets traded mixed but Chinese shares led gains to touch fresh seven-year highs following a strong close in the US markets. Crude prices remained flat on a big jump in US crude inventories and stoke concerns of a global supply glut.
GAIL India topped the selling liston Sensex, down 3 percent after Credit Suisse downgraded the stock to underperform with a target of Rs 320. The brokerage said there has been a 180 degree turn in the company’s fortunes and even with the elimination of subsidy payments, GAIL’s PAT can decline Y-o-Y in FY15-16.
Shares of Mahindra & Mahindra, Tata Motors, Dr Reddy’s Labs, NTPC and Hindalco declined 1-1.7 percent while HDFC, L&T, Sun Pharma, Reliance Industries, ITC, HUL, Bharti Airtel, BHEL, ONGC, Tata Steel and Tata Power gained 0.4-1.6 percent.
Loans are set to get cheaper as HDFC and SBI cut home loan rates over the weekend. HDFC reduced home loan rates by 20 basis points to 9.9 percent with effect from today while SBI cut rates for new loans by another 10 basis points to 9.9 percent.
Info Edge gaind 2.5 percent after Zomato raised USD 50 million from its existing investors. Info Edge pumped in Rs 155 crore crore to maintain its shareholding at 50.1 percent in Zomato. Bank of America Merrill Lynch said this fund raising should add Rs 10 to 88 per share to Info Edge sum of the parts.
In important fund action, Shriram EPC gained 13 percent as board approved conversion of funded interest term loan with the conversion of up to Rs 313 crore of CDR lenders into company’s equity shares.