Tuesday, 13 December 2016

Nifty still below 8200 ahead of Fed meet; Lupin, Tata Steel down

Equity benchmarks remained directionless as investors maintained caution ahead of Federal Reserve's two-day policy meeting that will begin tonight. 

10:40 am Buzzing: Shares of BLS International Services surged 10 percent intraday on bagging big contract worth 175 million euro (Rs 1,300 crore) from the Government of Spain.

"With this agreement, BLS International will open almost 100 global consulate offices in more than 38 countries for exclusively processing Spanish Visas globally," it said.

The company expects to process approximately 1.8 million applications every year. Of the total, 53 Spanish Visa Application Centres (VACs) will get operational in December 2016.

BLS International Services is a specialist provider for outsourcing of visa, passport and attestation services to the client governments across the world.

10:29 am FII View: Mahesh Nandurkar of CLSA says top ideas for 2017 are ITC, Maruti, ICICI Bank, Power Grid, Vedanta and Zee Entertainment.

He believes the slowdown due to demonetisation is unlikely to last materially beyond March 2017 and the stocks fallen due to the scare offer good buying opportunities.

"ITC, Maruti Suzuki and Zee Entertainment fall under this theme. ICICI Bank and Vedanta fit well with the globally trending value theme and Power Grid is a solid stock that offers predictable earnings growth," he explains.

10:15 am Interview: The impact of cash crunch is felt across corporate India, and non-banking financial companies (NBFCs) can see tough times for the next two quarters, says Rajeev Jain, MD of Bajaj Finance.

Speaking to CNBC-TV18 he said that post demonetisation all verticals except for business loans have seen growth and the company has decided to be more cautious on loans against property and small businesses.

He said that repayments and disbursements going forward will be focussed on a monthly basis.

It is difficult to quantify the impact of demonetisation on the assets under management (AUM) growth for the third and fourth quarter but the company is well equipped to deliver (on a sustained basis) 25 percent balancesheet growth and a net profit growth of 20 percent, he further said.

Also read - Buy, sell, hold: 7 cherry picked stocks for your portfolio 

10:00 am Market Check: Equity benchmarks remained directionless as investors maintained caution ahead of Federal Reserve's two-day policy meeting that will begin tonight.

The 30-share BSE Sensex was up 52.46 points at 26567.70 and the 50-share NSE Nifty gained 8.95 points at 8179.75. The market breadth was positive as about 1049 shares advanced against 763 declining shares on the BSE.

Analysts say a 25 basis points rate hike is largely priced in by the market, hence the important point to watch out for would be commentary on future rate hikes and inflation.

While contending that the environment is appropriate for a rate hike, Matthews believes that the US Fed is playing second fiddle to government policy.

“Unless there is something truly shocking, I really doubt the market will be that focussed on the minutia as it used to be. US president elect Donald Trump has implied that he won’t be continuing Yellen’s chairmanship beyond her term and its importance has waned in the light of presidential elections," he said.

Tata Motors retained its top position in the buying list, up nearly 3 percent after block deals. Sources told CNBC-TV18 that Morgan Stanley was likely to buy 5 crore shares in the company.

ITC, Reliance Industries, Maruti Suzuki and Wipro gained 0.7-1.7 percent while ICICI Bank, Lupin, Asian Paints, Tata Steel and BHEL fell 0.5-1 percent.

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