10:15 am Market Expert:
The trajectory of earning growth, which saw a modest decline in the first half of FY16, is likely to see recovery in the second half and FY17 will see a proper growth in earrings, says Anish Damania, CEO, IDFC Securities.
According to him, earnings for whole year would grow around 7 percent. First half saw a decline of 3 percent but second half would see a growth of around 10-12 percent and FY17 would see a growth of 20 percent on back of government’s increased spending, lower inflation, seventh pay commission coming through, OROP etc.
On basis of all the above developments, he expects Nifty to hit 9250 within a year.
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10:00 am Market Check: The market continued to see buying interest, aided by banking & financials, FMCG, metals and infra stocks. However, the correction in Infosys limited upside.
The Sensex rose 80.66 points to 25840.76 and the Nifty climbed 23.30 points to 7829.90. The broader markets marginally outperformed benchmarks; the BSE Midcap and Smallcap indices gained 0.4 percent and 0.6 percent, respectively.
The market breadth was also positive as about 1158 shares have advanced against 618 declining shares on the BSE.
ITC continued to top contributor to Sensex’s gains, up 2 percent. Vedanta, Hindalco, GAIL, BHEL and Sun Pharma rallied 1.5-3 percent.
Infosys lost 1.66 percent on margin warning for second half of FY16. Dr Reddy’s Labs plunged over 2 percent and Bharti Airtel fell over a percent.