Wednesday, 23 November 2016

Sensex, Nifty may rally on global cues; L&T, Wokchardt in focus

L&T will react to its Q2 earnings which beat street estimates. Divestment gain, other income and lower finance cost drove bottomline growth. The company has maintained its FY17 revenue and order inflow guidance. 

The market may rally Wednesday on strong global while the SGX Nifty indicates a strong start on Dalal Street. The US markets extend their all-time highs, with the Dow topping 19000 for the first time ever. Asia, too, opened on a strong footing. Japanese markets are shut for trade today.

Yesterday, short covering and positive global cues helped the BSE Sensex snap six-day losing streak and the Nifty close above 8000 level. The 30-share BSE Sensex was up 195.64 points at 25960.78 and the 50-share NSE Nifty climbed 73.20 points to 8002.30.

L&T will react to its Q2 earnings which beat street estimates. Divestment gain, other income and lower finance cost drove bottomline growth. The company has maintained its FY17 revenue and order inflow guidance.

US FDA woes continue for Wockhardt as it gets another warning letter for its UK subsidiary CP Pharma. The letter highlights aseptic processing issues amongst other problems at the plant.

Among global markets, Asian stocks crept to one-week highs as investors tried to share in the exuberance of Wall Street, where the three main indices seized record peaks for a second straight session.

MSCI's broadest index of Asia-Pacific shares outside Japan also added 0.3 percent, edging further away from four-month lows hit on Monday.

The Dow closed up 0.35 percent and above 19,000 for the first time. The S&P 500 gained 0.22 percent and the Nasdaq 0.33 percent. Still, the market is starting to look expensive with the S&P 500 trading near 17.3 times forward 12-month earnings, compared to the 10-year median of 14.7, according to StarMine data.

The dollar resumed its uptrend helped by a surge in US existing home sales last month that further cemented expectations not only of a Federal Reserve interest rate hike in December, but also of further tightening next year.

Crude oil prices gave up gains on worries Iran and Iraq were not ready to agree on an OPEC output freeze. Prices earlier rose to the highest level this month on reports cartel members had overcome their internal disputes.

Gold edged lower on after US equities hit all-time highs on market expectations for higher growth and more spending from a Donald Trump presidency. Investors cut holdings for an eighth consecutive session, amid speculation that the Federal Reserve will raise US interest rates next month.
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3 comments:

Geet Khare said...

Equity benchmarks wiped out early gains with the Nifty breaking 8000 level on profit booking. Banking & financials, auto and FMCG stocks were under pressure while healthcare, technology and metals stocks gained. capitalstars

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Geet Khare said...

Indian equity benchmarks are likely to witness a positive opening on Friday, the first day of the December Futures & Options (F&O) contract series, tracking a mostly bullish trend across markets in Asia amid optimism that the US economy is strong enough to withstand higher interest rates, bolstering risk raking appetite. SGX Nifty is trading 54.00 points higher.capitalstars