10:45am Market Corrects
Equity benchmarks declined further with the Sensex falling 148.74 points to
28350.80 and the Nifty losing 64.45 points to 8465.70.
About 567 shares have advanced, 1783 shares declined, and 62 shares are
unchanged.
Sanjay Dutt, director, Quantum Securities is not bearish on the Indian
market; however he cautions that prices have run up ahead of fundamentals and
Indian stocks look very over-owned at the moment.
According to him, there is a 80 percent probability that this is the peak
for market this year and recommends market participants to brace for a
good correction before January 31. He sees base for Nifty at 7600-7700 level.
Those looking to bet on the market should keep adding on to stocks when
there is a pullback, he says.
10:20am Divestment
The ONGC and Coal India divestments could be within days of each
other as the government is keen to conclude the divestment by December 15, say
sources.
The international road shows for ONGC and Coal India are done with and the
domestic road shows are now underway. The government is expected to decide as
early as next week which issue it will launch first, ONGC or Coal India.
Sources also say that foreign investors have sought a steep discount for the
ONGC OFS issue. It is important to note that the cabinet had approved the ONGC
OFS and had provided for a discount of upto 10 percent.
Sources say investors have sought a steep discount as there is no clarity on
the subsidy-sharing mechanism and that foreign investors are keen to
participate in the Coal India stake sale.
The government is hoping to lap up between USD 4-5 billion by divesting
stake in both those companies.
10:00am Market Check
Equity benchmarks slipped into red in morning trade led by profit booking in
metals, banks and auto stocks. The 50-share NSE Nifty broke the 8500 level,
falling 31.10 points to 8499.05 while the 30-share BSE Sensex declined 54.38
points to 28445.16.
The broader markets lost ground too. The BSE Midcap and Smallcap indices
fell 0.8 percent each. Advancing shares outnumbered declining ones by a ratio
of 1306 to 687 on the Bombay Stock Exchange.
Among banks, ICICI Bank, State Bank of India and Axis Bank slipped nearly a
percent. In the metal space, Tata Steel and Hindalco Industries dropped over 2
percent while Sesa Sterlite declined over a percent.
Engineering and construction major Larsen & Toubro and power producer
Tata Power declined 1.5 percent each.
However, state-run power equipment maker BHEL climbed over 2 percent as
brokerage house Citi upgraded the stock to buy from sell earlier and raised
target price by 90 percent to Rs 335 (from Rs 176 earlier), implying 26 percent
upside from current levels.
Telecom operator Bharti Airtel gained a percent as company and American
Tower Corporation signed an agreement for sale of Nigeria tower portfolio.
Bharti's Nigeria portfolio has 4,800 towers.
HDFC, HDFC Bank, Infosys, Hindustan Unilever, Maruti Suzuki and Wipro gained
0.3-0.8 percent. More information please visit this site www.bigprofitbuzz.com
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