11:45am Stocks in Focus: SBI remained in focus as the bank
has approved divestment in SBI Life by upto 10 percent. VG Kannan, MD, SBI saysthere are no plans to sell more than 10 percent stake at this stage and stake
is valued at around Rs 2500 crore.
Reliance Industries climbed 2 percent as Morgan Stanley has upgraded the
stock to overweight from underweight. It expects earnings to grow 50 percent
over FY15-18e driven by downstream expansion.
CLSA reiterated its high conviction buy call on Infosys and raised target
price to Rs 2800 from Rs 2500. It expects stronger revenue growth in FY16/17 as
new management is in place and it should gain leadership in digital and
traditional services while improving client mining. The stock fell 0.5 percent
on profit booking.
Dr Reddy's Labs also gained 2 percent as CLSA has a buy rating on the stock,
saying remediation efforts at Srikakulam API plant is on.
JK Tyre jumped 10 percent. Antique met the management and a few takeaways
include the surge in Chinese import share not sustaining in the longer run
especially with a cyclical revival in domestic commercial vehicles expected to
start in H2FY16.
11:25am Road projects: After having awarded a total of 3000
km road projects in FY15, National Highways Authority of India now aims to
award 9000 km road projects in FY16, says member- Finance Satish Chandra.
In an interview Chandra says the road authority also deferred premium payments
for 13 projects to the tune of Rs 7000 crore in FY15.
Furthermore, Chandra adds the FY16 expenditure is likely to be about
Rs 75000 crore.
11:00am Market Check
The market continued to gain into today's trading session with the Sensex
holding 28000 level. The broader markets outperformed with a firmadvance:decline ratio.
The Sensex advanced 66.20 points to 28042.06 and the Nifty gained 21.60
points at 8513.90. The BSE Midcap Index rose 0.6 percent and Smallcap rallied
1.3 percent.
About 1499 shares have advanced, 652 shares declined, and 137 shares are
unchanged on the Bombay Stock Exchange.
Herald Van Der Linde, HSBC is still overweight on India and do not think
investors are selling India to buy China although it has become more attractive
on back of some key policy changes by The People's Bank of China (PBOC).
He believes there are no specific risks in India, the only risk being other
markets could become more attractive. However, he does not see money being
rotated out of India into other emerging markets either.
Oil marketing company stocks surged as the IOC chairman, B Ashok that they
will report healthy profit in Q4. "Inventory losses have been made up and
currently we enjoy healthy margins on petrol cracks. Under-recoveries will fall
from Rs 15,500 crore in Q1 to Rs 3,000 crore in Q4," he says. IOC, HPCL
and BPCL rallied 3-5 percent while ONGC also gained 1 percent.
Globally, Asia remained mostly firm, tracking the positive close on Wall
Street. Shanghai markets gained 0.3 percent as Beijing unleashed a new policy
to rejuvenate the property market. For more information please visit this site www.bigprofitbuzz.com
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