12:45pm Market
Recovers
The market recouped losses in afternoon trade with the Nifty
clawing back above the 8100 level supported by Reliance Industries, HDFC and
HDFC Bank The Sensex declined 48.73 points to 26938.73 and the Nifty slipped
8.55 points to 8118.80.
About 968 shares have advanced, 1602 shares declined, and
455 shares are unchanged on the BSE.
12:35pm TC sends back
TRAI recommendations
Inter-ministerial panel Telecom Commission (TC) has decided
to send back TRAI's recommendations on 3G spectrum pricing for a reconsideration.
According to sources, TC today discussed Trai's proposals on
2100 MHz band base price, used for 3G services, in its meeting and decided to
send back the recommendations for a review.
The Telecom Regulatory Authority of India (TRAI) on December
31 had recommended a base price at Rs 2,720 crore per megahertz.
An internal committee of the Department of Telecom (DoT) is
believed to have suggested fixing base price of 3G spectrum at Rs 3,899 crore
per megahertz, about 43 per cent higher than the rate recommended by TRAI.
"The committee is of the view that market determined
price of 2010 should be indexed using SBI PLR and 80 percent of that price can
be fixed as reserve price for 2100 Mhz band (used for 3G services)," a
source said, reports PTI.
12:20pm Market Expert
Contrary to the widely held view that sees a fall in crude
prices to be a negative for the global markets, Geoff Lewis, ED, JPMorgan Asset
Management believes lower oil prices are very good for energy importers like
India. According to him, the fall in crude price does not signal lower global
growth.
Germany is making contingency plans for the possible
departure of Greece from the euro zone. Speaking Lewis says the probability of
Greek exit is low and is around sub-10 percent.
Going ahead, Lewis continues to remain bullish on the Indian
market. Money seems to be coming to India on a fairly regular basis and there
is solid growth opportunity, he concludes.
12:00pm Market Check
The market remained under pressure with the Nifty struggling
below 8100 level as capital goods, healthcare, select oil & gas and metal
stocks took a hit. The broader markets too gave up all their early gains,
trading 0.5 percent lower.
The Sensex declined 174.22 points to 26813.24 and the Nifty
fell 49 points to 8078.35. About 893 shares have advanced, 1600 shares
declined, and 454 shares are unchanged on the Bombay Stock Exchange.
Market experts are not too worried about the correction.
Ridham Desai of Morgan Stanley expects more volatility ahead but expects
earnings to pick up in the next two quarters. Geoff Lewis of JPMorgan too
continues to be positive on Indian market. Arvind Sanger of Geosphere, though
sounds a cautios note, says will buy into India on dips.
Asian markets are mixed amid choppy trade as concerns over
lower oil prices persist. Brent crude continued to trade around USD 50 a barrel
on supply glut worries.
Indian crude basket fell by USD 2.31 to USD 49.22 a barrel
yesterday.
Lower oil prices continued to impact stocks like GAIL and
Cairn, down 3 percent each. Media report suggested that gas transmission
company GAIL postponed LNG tender date as it found no takers.
HUL continued its gains from yesterday, up 3 percent. Infact
it is the top gainer today as brokerage upgrades pour in. In previous session,
Deutsche Bank upgraded the stock to buy with a target price of Rs 900 and today
Credit Suisse and JP Morgan followed suit. Credit Suisse upgraded the stock to
outperform from neutral with an increased target price at Rs 915 from Rs 800
earlier and also upgraded earnings by 4 percent to build in lower input costs.
JP Morgan upgraded the stock to neutral with a December 2015 target price of Rs
790.
Kotak Mahindra Bank and ING Vysya Bank are in focus. Both
banks will hold their extraordinary general meeting today for approving the USD
2.5 billion all stock deal between the two. Both stocks gained 2 percent each.
ONGC managed to gain, up 0.9 percent. UBS says ONGC is
relatively better positioned than global emerging market upstream oil state
owned entities. Valuations are at trough levels on enterprise value/EBITDA and
price to book value, according to the brokerage. UBS has a buy rating on the
stock. "It is among our top picks with a target price of Rs 480," it
adds. More information please visit this site www.bigprofitbuzz.com
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