11:55 am Interview:
11:45 am BoJ monetary policy: The Bank of Japan kept monetary policy steady but warned that the country’s exports and output were feeling the pinch from slowing demand in emerging markets. As widely expected, the BOJ reiterated its pledge to increase base money, or cash and deposits at the central bank, at an annual pace of 80 trillion yen (USD 664 billion) through purchases of government bonds and risky assets. The policy board decision was made by an 8-1 vote.
11:30 am Buzzing: Shares of Bharat Forge slipped 5 percent intraday. Bank of America Merill Lynch has slashed target price by 16 percent to Rs 900 per share as weaker demand drives de-rating. The brokerage has also cut FY17 earnings per share (EPS) by 6 percent stating weaker exports and non-auto will hurt mix and margin. BoAML says weaker non-auto demand led by oil & gas sector and cyclical slowdown in the US heavy truck market in 2016 are key concerns for the company. In 1QFY16, non-auto declined 15 percent Q-o-Q and grew only 4 percent Y-o-Y, substantially lower than the 52 percent growth in FY15.
11:55 am Interview:The newly listed arm of Biocon , Syngene International is targeting a growth of USD 250 million by FY2018, says the Chief Executive Officer (CEO) of the company, Peter Bains. Syngene has managed to maintain its margin in the range of 31 to 34 percent and will continue to do so, he says adding that the company is aiming for compounded annual growth rate (CAGR) of 20 percent. In an interview with CNBC-TV18, Bain says that the company is looking to expand its manufacturing services and turn it into a commercial venture in the future.
It also adds that reduction in volume growth to only 5.8 percent annually in Q1FY16 compared to 21 percent in FY15 has started hurting Bharat Forge stock’s performance.
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The market continues to struggle as capital goods, metals and auto stocks are down. The Sensex is down 63.88 points at 25792.82. The Nifty is down 27.80 points at 7844.45. About 967 shares have advanced, 1011 shares declined, and 95 shares are unchanged.
Tata Steel, Hindalco, Vedanta, Tata Motors and L&T are major laggards while Maruti, Sun Pharma, NTPC, HUL and ITC are top gainers in the Sensex.
Gold edged down to just above a one-month low, as European stocks rose ahead of a Federal Reserve policy meeting that will be scrutinized for clarity on when the US central bank will raise interest rates.
The Fed will kick off a two-day policy meet on Wednesday. Though some in the market still reckon a “lift-off” could come this week, the view is gathering steam that faltering global growth could push that back even into next year.