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Sunday, 29 March 2015

Sensex, Nifty maintain uptrend; telecom, banks, FMCG lead

11:30am Buzzing: HDFC gained over 2 percent after Keki Mistry told that with regards to HDFC Life the timing or amount of IPO is not decided yet and Standard Life will want to increase stake in HDFC Life but the quantum is not decided. Separately, they see scope of further 25 to 50 bps rate cuts but don't expect any movement on April 7.

Idea Cellular saw a bounceback today. BoAML has upgraded Idea to buy from neutral. According to them, Idea was the most vulnerable in the upcoming auction with around 70 percent of revenue at risk but with the regulatory overhang behind, BoAML expects the focus to return to operations. They prefer Idea to Bharti Airtel.

11:00am Market Check:

The market has maintained its strong momentum with the Nifty trading at 8400 supported by telecom, banking & financials, IT and FMCG stocks. The broader markets continued to outperform benchmarks with the BSE Midcap and Smallcap indices rising 1.3 percent and 2.3 percent, respectively.

The Sensex surged 281.01 points or 1.02 percent to 27739.65 and the Nifty rallied 75.40 points or 0.90 percent to 8416.80. About 1703 shares have advanced, 540 shares declined, and 120 shares are unchanged on the BSE.

Asian markets traded mostly higher. Shanghai markets hit a new high as a modestly positive lead from Wall Street offset the impact of sliding oil prices. Crude continued to decline with the Brent trading near USD 56 per barrel.

Oil and gas companies remained in focus on account of the likelihood of gas prices being cut to USD 5.02 per mmbtu effective April 2015. Analysts say the lower gas prices will impact the likes of ONGC where a 10 percent fall in gas prices is likely to impact earnings by 9 percent. Reliance Industries is expected to see a small impact as analysts say gas is now a small component of its business.

Staying with the story city distribution gas stands to benefit as the segment will get 100 percent allocation of cheap domestic gas which will enhance margins. According to Edelweiss, Indraprastha Gas will be the largest beneficiary while GSPL will benefit via stakes in city gas companies. More information please visit this site

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