10:59 am Market recovers:
10:59 am Market recovers:Equity benchmarks recouped early losses. The Sensex rose 16.27 points to 26408.65 and the Nifty advanced 8.10 points to 8010.05.
About 1097 shares have advanced, 967 shares declined, and 88 shares are unchanged on the BSE.
10:45 am Sadbhav gets anchor money: Sadbhav Infrastructure Project has raised Rs 210 crore from anchor investors. The company alloted 2.04 crore equity shares at a price of Rs 103 aggregating Rs 210 crore, the company said in a statement. The anchor investors are HDFC Mutual Fund, Tata MF, Nomura MF, Morgan Stanley, Amansa, Tata AIA Life and SBI MF.
Sadbhav plans to raise Rs 425 crore through fresh issue of equity shares and an offer for sale of up to 32.36 lakh equity shares by existing investors including the anchor investors’ portion.
The price band has been fixed at Rs 100-103 a share. The IPO, which opens today, would close on September 2.
10:30 am FII View: Bhuvnesh Singh, Head of Research, Barclays feels while Q1FY16 earnings were by and large weak due to weaker-than-expected demand recovery, but there were still some bright spots.
According to him, operating performance was better than topline performance, the demand environment showed signs of improvement in a few sub-sectors in the consumption and industrial sectors.
Barclays analysts expect an earnings bounce back in H2FY16 in several sectors like consumer, financials, healthcare and capital goods.
However, the brokerage slashed 12-month forward Nifty index target to 9,642 from 10,219 earlier due to delay in earnings recovery, Singh adds.
10:15 am Rate cut on card?: Indicating an imminent rate cut, RBI Governor Raghuram Rajan has said inflation has come down to the comfort zone quicker than expected and he is keeping a watch on data to see how much room is there for further easing of the monetary policy.
“We are on a phase of accommodation. We are still in that phase. We are looking at the data to see what more room we have,” Rajan said.
Stating that RBI monetary policy has been accommodative, Rajan said he has cut interest rates three times already this year and he was “still on an accommodative setting”.
10:00 am Market Check
The market continued to see profit booking in morning trade after two-day rally. The Sensex fell 130.82 points to 26261.56 and the Nifty declined 31.20 points to 7970.75, dragged by banking & financials, capital goods and metals stocks. However, pharma stocks bucked the trend.
Hiren Ved of Alchemy Capital Management feels that the market may correct further from current levels. But the good thing about corrections this time around is the fact that market participants did not panic.
“Average market correction has been around 20 percent going by historical data,” he told CNBC-TV18. Also, he adds that a lot of the correction was because of external factors than domestic ones. Ved says India will continue to remain vulnerable to such corrections unless substantial growth is seen.