Friday, November 7, 2014

Choppy Sensex, Nifty end lower; auto, cap goods, auto drag

Equity benchmarks closed marginally lower amid consolidation on Friday, weighed down by capital goods, metals, auto and index heavyweights like Reliance and ITC. The broader markets closed mixed with the BSE Midcap rising 0.35 percent and Smallcap falling 0.4 percent.

The 30-share BSE Sensex declined 47.25 points to close at 27868.63 and the 50-share NSE Nifty fell 1.30 points to 8337.

This is a market in which investors should buy on dips, says Vibhav Kapoor, Group Chief Investment Officer, IL&FS.

According to him, the market is right now banking on hope and trying to discount FY16 numbers instead of FY15 numbers, be it macro or corporate earnings. The macro environment still looked a bit uncertain at the moment, but there were enough signs of an improvement in FY16, he added.

Kapoor expects to see the Nifty at 9000 by March 2015 while Aditya Narain, Citigroup remains comfortable with market view of 31,000 on the Sensex by December 2015.

For the week, the Sensex, Nifty closed flat while the CNX Midcap and BSE Smallcap indices gained more than a percent.

Meanwhile, media report suggested that Union Council of Ministers will be expanded on Sunday in which about 10 new faces, including Goa Chief Minister Manohar Parrikar, are likely to be inducted in an exercise that may also cover some allies.

State-run power equipment maker BHEL fell more than 3 percent while engineering and construction major Larsen & Toubro declined a percent ahead of earnings later today.

Private sector lender HDFC Bank fell 1.5 percent as the MSCI has deleted it from its India index. Public sector lender State Bank of India was down 1.5 percent while its rivals Axis Bank and ICICI Bank gained 2.8 percent and 1 percent, respectively.

Two-wheeler maker Hero Motocorp lost 1.9 percentas 2.9 percent equity shares changed hands via block deals today and most likely Bain Capital was the seller.

Among others, Reliance Industries, TCS, ITC, M&M, Sesa Sterlite, Gail India, Wipro, Tata Steel and Cipla were down 0.8-2 percent.

India’s largest coal miner Coal India declined 1 percent ahead of earnings on Saturday.

Drug maker Dr Reddy’s Labs topped buying list in the Sensex. Dr Reddy's Labs surged nearly 5 percent as it received USFDA approval for Valcyte generic while DLF climbed 5.5 percent as the Securities Appellate Tribunal or SAT has allowed the realty major to redeem Rs 1,806 crore from mutual funds till next month.

Other gainers include Axis Bank, HUL and ONGC.

BSE midcap gainers were Allcargo, Risa International, Abbott India, Firstsource Solution and
Prestige Estate. Shares of Aurobindo Pharma hit record high at Rs 1043.40 per share, up 4 percent intraday after it has reported a whopping 58.3 percent growth in consolidated net profit at Rs 372 crore for July-September quarter led by US generics.

Top losers in the midcap were Birla Corp, UCO Bank, Novartis India, NBCC and Bhushan.

About 1440 shares advanced while 1564 shares declined on the Bombay Stock Exchange.
Source : Moneycontrol

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