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Thursday, 30 April 2015

Sensex, Nifty drag 1%; rupee weak, infra & FMCG stocks skid

1:30 pm Big bull: The Indian stock market has corrected enough over the past few weeks and the thesis remains that local equities are in a sustainable long-term run, as compared to countries like China where shares have seen a ‘poor quality’ rally.

That’s the view of Samir Arora of Singapore-based Helios Capital, who has upped the net exposure of his long-short hedge fund by 5-7 percent. (Arora’s current net long exposure is not known but in February this year, he said his position then stood at 63-64 percent.)

“As opposed to 2014, which was a long-only year, we expect this year to be long-short,” he said, while maintaining that investors should expect 12-15-18 percent kind of returns from stocks this year.

On the issue that has had investors the most worried, Arora said that even if earnings were muted in the current fiscal year (at about 10-12 percent growth), they will likely make up for it in the following year and that on a 2016-17 basis, shares were priced at a reasonable 16-17 times earnings.

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The market is slipping away, as the Sensex is down 295.90 points or 1 percent at 26930.03. The Nifty is down 85.35 points or 1 percent at 8154.40. About 1031 shares have advanced, 1369 shares declined, and 147 shares are unchanged.

Bharti, Tata Power, HDFC, Coal India and Dr Reddy's Labs are among major laggards while Axis Bank, Vedanta, Cipla, Reliance and ONGC are top gainers in the Sensex.

The rupee pared its initial losses, but was still down by 17 paise at 63.47 against the American currency in late morning trade on sustained bouts of month-end dollar demand from banks and importers amid weak equities.

The dollar was lower against its major rivals in early trade over the doubts about the strength of the US economic recovery. For more information please visit this site

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