10:20am FII View
Andrew Garthwaite, Credit Suisse
says lower oil price would improve India's GDP by 1.5 percent, it would also
impact monetary policy with RBI likely to begin cutting interest rates in early
2015.
"These positives only serve to
further underpin our positive stance on India, which benefits from a cheap
currency, the most comprehensive set of reforms, strong demographics and
limited exposure to slowdown in China. The Indian market is not cheap, but
historically, an acceleration in GDP growth tends to correlate with a re-rating
of the equity market," he adds.
10:00am Market Check
Equity benchmarks are consolidating
today ahead of expiry of the December derivative contracts, which scheduled to
be on Thursday. The Sensex rose 66.64 points to 27438.48 and the Nifty advanced
19.80 points to 8245.
The broader markets outperformed
benchmarks with the BSE Midcap and Smallcap indices rising 0.7 percent and 0.5
percent, respectively. Nearly two shares advanced for every share declining on
the Bombay Stock Exchange.
Given that Indian equities are in a
sweet spot, market should hold steady at current levels, says Sandeep Bhatia,
Executive Director and Head of Sales at Kotak Institutional Equities.
Shares of NTPC and Gail topped the
buying list, up 2 percent each followed by ITC, ONGC, Maruti Suzuki, Mahindra
& Mahindra, HUL, Hero Motocorp, Bharti Airtel, Coal India, Sesa Sterlite
and BHEL with 1-1.7 percent gain.
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