Friday, 20 January 2017

Nifty holds 8400 amid pressure; Mindtree sinks 2%, Cipla jumps

Benchmark indices continued to reel under selling pressure amid volatility as investors maintained cautious stance ahead of inauguration speech of Donald Trump as US President later today and after disappointing Axis Bank's earnings. 

10:40 am Buzzing: Motherson Sumi Systems shares gained nearly 4 percent intraday after the board approval for acquisition of Finland based truck wire maker by its subsidiary.

"The board of directors of Motherson Sumi, on January 19, has approved a proposal to launch a voluntary, recommended public tender offer for acquisition of outstanding share capital and voting rights of Finland company PKC Group Plc that currently listed on Nasdaq Helsinki stock exchange," the auto ancillary and engineering company said in its filing.

Headquartered in Helsinki, PKC is a global tier 1 supplier of wiring harness and associated components to original equipment manufacturers in the heavy & medium duty commercial vehicles and locomotive segments across North America, Europe, Brazil and China.

10:25 am FII View: Indian markets haven’t completely factored risks such as protectionism in IT sector and earnings which can lead to short-term volatility in the markets, according to BNP Paribas’s management. Besides, consensus earnings estimates for FY17 and FY18 are way off charts, said Manishi Raychaudhuri, Asian Equity Strategist - Equity Cash Asia Pacific at BNP Paribas.

Raychaudhari pegged earnings growth for FY17 in single-digits and for FY18 in low double digits. He told CNBC-TV18 he expects a 7-8 percent EPS growth in FY17 and a 12-14 percent EPS growth in FY18.

Also read - Buy, sell, hold: 3 crucial stocks that analysts are watching out 

10:00 am Market Check 

Benchmark indices continued to reel under selling pressure amid volatility as investors maintained cautious stance ahead of inauguration speech of Donald Trump as US President later today and after disappointing Axis Bank's earnings.

The 30-share BSE Sensex was down 82.39 points at 27226.21 and the 50-share NSE Nifty fell 23.40 points to 8411.70.

Axis Bank tanked nearly 6 percent after reporting lower-than-expected earnings, though slippages were lower compared to analysts' estimates.

Mindtree declined over 2 percent as earnings met analysts' estimates, though operational performance was ahead of expectations.

Infosys, ICICI Bank, Tata Motors, Asian Paints and NTPC were under pressure while HDFC Bank, SBI, ITC, Cipla and Reliance Industries gained.

Asian markets were a mixed bag on Friday after China's latest set of economic data suggest the economy is recovering, even as risk sentiment sours ahead of Donald Trump's inauguration.
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