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Tuesday 11 November 2014

Record opening: Sensex, Nifty soar on strong global cues

9:50 am Result estimates: Private steel maker Tata Steel is expected to report a 35.3 percent decline in consolidation profit after tax at Rs 593 crore in July-September quarter compared to Rs 917 crore in the year-ago period due to higher tax rate, according to the average of estimates of analysts polled by CNBC-TV18. In Q2FY14, there was a deferred tax of Rs 390.02 crore.

Revenue during the quarter is seen falling 1.8 percent to Rs 35,990 crore in the quarter ended September 2014 from Rs 36,644.9 crore in same quarter last year due to weak European volumes (though Indian volumes may be marginally higher).

Operating profit (earnings before interest, tax, depreciation and amortisation) may grow 9.5 percent year-on-year to Rs 4,057 crore and margin may expand 120 basis points to 11.3 percent in the quarter gone by.

9:30 am Macro data poll: Inflation based on the Consumer Price Index (CPI) for the month of October is seen at 5.63 percent versus 6.46 percent on a month-on-month basis, another new low for the index since it started in January 2012, says a CNBC-TV18 poll. Even the industrial output (IIP) for September is expected to come at 2 percent versus 0.4 percent in August.

CPI-based inflation eased for the second month in a row to 6.46 percent in September, compared with a downward revised 7.73 percent a month ago. It is expected to come in at its lowest since the new index was started on the back of a recovery in monsoon, which prevented food inflation from becoming a nasty shock.

Following the trend of past three months, one can see that food inflation peaked in July and after that it has been falling month-on-month. In July, it stood up 2.7 percent against the previous, while it fell by 1.6 percent and 0.3 percent in August and September, respectively. October prices are expected to be down by about 7 percent against September on a sharp fall in vegetable and cereal prices.

However, industrial output numbers (IIP), expected at 2 percent, could be bit of negative news. According to the poll, it can range from 1 to 2 percent, while many respondents also gave zero as the expected IIP growth, which means no growth at all.

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The market has opened at new record high following strong global cues. The Sensex is up 48.58 points at 27958.64 and the Nifty is up 27.70 points at 8390.35. About 504 shares have advanced, 141 shares declined, and 27 shares are unchanged.

Coal India, Tata Power, Tata Steel, BHEL and Reliance are top gainers in the Sensex. Among the losers are Infosys, NTPC and Wipro.

The Indian rupee opened flat at 61.52 per dollar versus 61.55 Tuesday.The yen hovers around seven-year lows against the dollar early on reports that Prime Minister Shinzo Abe will call a general election in December.

NS Venkatesh of IDBI Bank said, "Both rupee & bond markets will closely watch the macro economic data release lined up later today. Rupee markets will also take cues from equity markets."

"Softening of inflation will be positive for currency and the rupee is expected to marginally strengthen against the dollar on the back of trade flows as well as capital flows. We expect a narrow USD-INR range of Rs 61.45-61.60/dollar," he added.

The US markets closed marginally higher with both the S&P 500 and Nasdaq composite hitting record highs. Meanwhile, Asian markets are mixed in morning trade with Japan's Nikkei hitting a new 7-year high.

In commodities, Brent crude prices trade around USD 81 per barrel after falling on Tuesday to USD 80.46, the lowest level since September 2010. From precious metals space, gold prices steady as demand for physical metal picked up after the previous day's 2 percent slide. More information please visit this site www.bigprofitbuzz.com

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