Monday, 22 August 2016

Nifty hovers around 8650, Sensex firm; FMCG gains, auto falls

ITC and HUL rallied 1-2 percent while ICICI Bank, Lupin, Sun Pharma and Maruti were down over a percent. 

10:25 am Market Expert: India is entering a pronounced consumer credit-driven consumption phase, said Saurabh Mukherjea, CEO-institutional equities of Ambit Capital. The economy is heading into a credit boom and next 12 months look reasonably solid for India's growth, he added.

Speaking to CNBC-TV18, he said funding cost for all financial institutions has come down significantly due to abundance of liquidity in the financial system. "That (liquidity), allied with squeeze in the residential housing sector, jewelry sector and black money, is resulting in consumer credit boom," he said.

His Sensex year-end target remains at 29,500. However, Mukherjea is of the opinion that pharma as a sector will de-rate in coming days. He believes the cash flows related to pharma companies are risky and valuations are overly-rated.

Also read - New regime to be a little dovish under Urjit Patel: Taimur Baig 

10:00 am Market Check FREE INTRADAY STOCK TIPS 

Equity benchmarks remained rangebound with the Nifty hovering around 8650 level as FMCG stocks continued to support the market while auto, technology and banks dragged.

The 30-share BSE Sensex was down 59.45 points at 28017.55 and the 50-share NSE Nifty declined 22.80 points to 8644.10 despite positive market breadth.

About 1044 shares advanced against 825 declining shares on the BSE.

ITC and HUL rallied 1-2 percent while ICICI Bank, Lupin, Sun Pharma and Maruti were down over a percent.

Meanwhile, the government on last Saturday appointed Urjit Patel as new RBI governor.

Mahesh Nandurkar of CLSA says appointment of Urjit Patel as the next RBI Governor puts to rest, months of speculation.

His appointment pretty much signals that the Government intends to continue inflation targeting as Urjit's thought process is considered to be not too different from that of Raghuram Rajan and generally hawkish, he feels.

Certain section of investors who were hoping for aggressive rate cuts may get disappointed, according to Nandurkar.


Neha Agrawal said...

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Krush Bell said...

BSE midcap index down 0.33 percent at 12991.83. BSE smallcap index declined 0.9 percent at 12448.24. more updates for equity market you can visit stock market tips

pranjali upadhyay said...

Lupin, TCS, Sun Pharma and NTPC topped the selling list on Sensex, down 2 percent each whereas ITC, HUL and BHEL gained 1-2 percent.
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