Wednesday, 8 April 2015

Sensex, Nifty trim gains; Midcap, Smallcap outperform

10:50am Interview: L&T Finance Holdings’ cost of borrowings has reduced 30-40 basis points recently, N Sivaraman, President and Whole-Time Director of the company said in an interview today.

He said commercial vehicle loan growth was likely to be low in the near term even as there were some signs of recovery.

He expects margins in retail loans to improve and those in wholesale loans to be stable.

He said the company’s overall margins have been improving by 15 basis every quarter.

10:25am Market Update: The market trimmed gains due to selling in ICICI Bank and HDFC. The Sensex rose 70.35 points to 28586.94 and the Nifty advanced 28.20 points to 8688.50.

About 1413 shares have advanced, 613 shares declined, and 148 shares are unchanged on the BSE. 

10:20am BoJ maintains status quo: The Bank of Japan kept monetary policy steady today, suggesting that policymakers remain unfazed by slowing inflation and recent signs of weakness in the economy.

As widely expected, the BOJ left unchanged its pledge to increase base money, or cash and deposits at the central bank, at an annual pace of 80 trillion yen (USD 666 billion) through purchases of government bonds and risky assets.

Board member Takahide Kiuchi, who has expressed concerns that massive money printing could sow the seeds of a future bubble, called for the BOJ to cut back its asset buying.

He proposed reducing the base money target, and the annual pace of increase in the BOJ's government bond holdings, to 45 trillion yen. The proposal was rejected by a majority vote.

Investors will be watching whether Governor Haruhiko Kuroda, at his post-meeting news conference, will stick to his conviction of hitting his 2 percent inflation target two years into the stimulus programme.

10:00am Market Check

The market continued to see buying interest led by Reliance Industries. Technology, FMCG and banks also supported the market. The Sensex rose 142.33 points to 28658.92 and the Nifty advanced 47.30 points to 8707.60 while the broader markets have consistently been beating benchmarks.

The BSE Midcap and Smallcap indices gained 0.8 percent and 1.5 percent, respectively. About 1392 shares have advanced, 504 shares declined, and 120 shares are unchanged on the BSE.

The risk reward is favourable for long-term investors, said Sanjay Dutt, Director at Quantum Securities, who believes second-rung companies would be big beneficiaries of the next move.

Speaking on the lending rate cuts taken by top three banks, Dutt said though the move is a definite positive but not much should be read into a 15-25 bps rate transmission.

Coal India topped the buying list on Sensex, up 3 percent followed by Reliance Industries with 2 percent rally. Infosys, TCS, Tata Motors, HDFC Bank, ITC, SBI and Bharti gained 0.7-1 percent. Maruti Suzuki rallied 1.7 percent.

However, ONGC and Sesa Sterlite lost nearly 2 percent. HDFC, Sun Pharma, M&M, NTPC and Tata Steel fell marginally. For More information please visit this site


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