Nov 29, 2016 04:21 PM IST | Source:

Nifty ends below 8150, Sensex flat; Maruti up 4%, ITC down 1%

Equity benchmarks came off day's high in afternoon trade due to selling pressure in ITC, HDFC Bank and Infosys. Auto & telecom and index heavyweights HDFC & Reliance continued to support the market.

Moneycontrol Bureau

3:30 pm Market closing
: Selling pressure triggered in last hour of trade dragged the market. The Sensex closed up 43.84 points or 0.2 percebt at 26394.01 and the Nifty was up 15.25 points or 0.2 percent at 8142.15. About 1578 shares advanced, 1024 shares declined and 198 shares were unchanged.

Maruti, Bharti Airtel, GAIL, Hero MotoCorp and M&M were top gainers while Axis Bank, Sun Pharma, NTPC, ITC and TCS were losers.

2:57 pm FII View: The Indian equity market is exiting the low return trap and equities are likely to deliver 15 percent return in rupee terms next year, says a Morgan Stanley report.

The low return environment that the country seems to be trapped in may get a breather in 2017, thanks to better equity valuations, bottoming of the growth cycle (disrupted temporarily by the recent demonetisation) and higher correlations with global equities market, the report said.

Demonetisation has come as a negative surprise leading to lower GDP growth estimates and therefore earnings and the recovery are likely to be pushed back by a couple of quarters, it said.

"The equity markets are once again looking attractive and appear poised for double digit returns in 2017," Morgan Stanley said in a research note, adding that equities are likely to deliver 15 percent returns in rupee terms in 2017 compared to (-)3 percent in 2015 and 2016.

It said double digit returns are possible next year, with a base case (50 percent probability) BSE Sensex target of 30,000.

2:42 pm Europe update:
European bourses were mixed as investors focused on talks between OPEC members and the political uncertainty ahead of a key referendum in Italy.

The pan-European Stoxx 600 was marginally higher but with major bourses pointing in different directions.

2:32 pm GDP growth:
Fitch Ratings today lowered India's GDP growth forecast for this fiscal to 6.9 percent from 7.4 percent, saying there will be "temporary disruptions" to economic activity post demonetisation.

It said economic activity will be hit in the October-December quarter because of the cash crunch created by withdrawal and replacement of Rs 500 and 1,000 notes that accounted for 86 percent of the value of currency in circulation.

"Indian growth has also been revised down to reflect temporary disruptions to activity related to the RBI's surprise demonetisation of large-denomination bank notes," Fitch said, as it revised real GDP growth forecast down to 6.9 percent for 2016-17, from 7.4 percent projected earlier.

The US-based ratings agency also revised GDP growth forecast for 2017-18 and 2018-19 lower to 7.7 percent from 8 percent earlier.

2:20 pm FPI investment:
Foreign Portfolio Investors (FPIs) have raised their stake in BSE-200 companies to USD 337 billion during July-September quarter and heavy buying was seen in sectors like banking and telecom, says a report.

FPI ownership in the BSE-200 index stood at USD 311 billion during the June quarter, according to the Kotak Institutional Equities report.

In percentage terms, FPI holding (including American Depository Receipts or ADRs and global depository receipt or GDR) in the index marginally rose to 25 per cent in three months ended September 30, 2016 against 24.8 per cent in the preceding quarter.

A sector-wise analysis shows that FPIs invested in automobiles, banking and energy and sold pharmaceuticals, technology and telecom stocks.

Also read - Bharat Financial up 8% on strong improvement in collection efficiency

2:00 pm Market Check

Equity benchmarks came off day's high in afternoon trade due to selling pressure in ITC, HDFC Bank and Infosys. Auto & telecom and index heavyweights HDFC & Reliance continued to support the market.

The 30-share BSE Sensex was up 117.12 points at 26467.29 and the 50-share NSE Nifty gained 38.35 points at 8165.25. The broader markets also erased some gains with the BSE Midcap and Smallcap indices rising 0.7-0.9 percent.

The market breadth remained in favour of advances as about two shares gained for every share falling on the exchange.

Eicher Motors was the biggest gainer, up nearly 6 percent followed by Idea Cellular, Maruti Suzuki, Bosch, Asian Paints, GAIL, M&M and Hero Motocorp with 2-4 percent upside.

Axis Bank, NTPC, Infosys, Sun Pharma, HDFC Bank, Hindalco, Bank of Baroda and BPCL were under pressure.

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