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Tuesday, 21 April 2015

Sensex sees marginal gains: HUL rebounds, IT stocks decline

10:25am FII View: A positive macro-and-policy-fuelled India was the most preferred emerging market across all financial centres in Europe at the end of 2014, says Deutsche Bank in a research report. But now global as well as emerging markets investors are looking at a tactical reallocation of aggressively overweight positions towards other EM's like China, Russia and Brazil, the report says.

Deutsche Bank met as many as 34 investors last week across key financial centers in Europe.

The brokerage house further says: "Many global investors we met – who were first time investors into India, through the rally last year, are currently focused on European equity markets, following improving economic data and QE in Europe."

Focusing on India, the report says, the ongoing tactical correction is a healthy consolidation and investors waiting on the sidelines should use this as an opportunity to realign their portfolios.

Deutsche Bank maintains its year-end Sensex target of 33,000.

10:00am Market Check

The market continued to see marginal gains in morning trade led by banking & financials, FMCG and select oil stocks. The Sensex rose 71.09 points to 27747.13 and the Nifty climbed 12.20 points to 8389.95.

The BSE Midcap and Smallcap indices gained 0.3 percent and 0.6 percent, respectively. More than two shares advanced for every share declining on the Bombay Stock Exchange.

Sun Pharma rebounded with 2 percent gains after a 9 percent fall in previous session. JP Morgan has maintained overweight rating on the stock with a target price of Rs 1030. "Large correction was driven by supply from Daiichi’s stake sale (down 19 percent over last 2 weeks including correction yesterday)," said the brokerage, adding he will use the weakness as a buying opportunity.

He believes the base Sun Pharma business (ex-Ranbaxy) can grow at more than 15 percent over medium term and sees significant upside from integration / turnaround of Ranbaxy acquisition, manufacturing related synergies.

HUL also rallied 2 percent followed by ICICI Bank, ITC, Reliance Industries, Axis Bank, M&M, HDFC Bank, HDFC, Dr Reddy's Labs and Hero Motocorp with 0.3-1.3 percent.

However, Wipro tanked 4 percent post disappointing earnings and weak guidance. TCS and Infosys too were under pressure, down 0.4-0.9 percent. For more information please visit this site

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