Jan 12, 2017 10:27 AM IST IST | Source: Moneycontrol.com

Nifty hits 8400, Sensex in green; Infosys, TCS up ahead of Q3

Infosys, ONGC, Adani Ports, Tata Motors and Hero MotoCorp are top gainers while Dr Reddy's Labs, Sun Pharma, Lupin, Cipla and ITC are losers in the Sensex.

Moneycontrol Bureau

9:55 am Currencies:
The Mexican peso weakened to fresh record lows against the US dollar, crossing the psychologically key level of 22 pesos to the dollar as a Donald Trump news conference inflamed trade worries.

"Nothing that Trump has said made it any less likely that Mexico is in trouble. They've been dealt a bad hand," said Thierry Albert Wizman, global interest rates and currencies strategist at financial advisory firm Macquarie.

The president-elect "again talked about companies not leaving the US, staying here," Wizman said.

In Trump's first news conference since the election, the real estate mogul highlighted announcements in the last two weeks by automakers such as Ford Motor to expand production in the US rather than Mexico.

9:45 am Pharma: Following US president-elect Donald Trump’s explosive speech last night where he lambasted the domestic pharma companies for outsourcing work, pharma stocks are likely to be in limelight today.

However, any negative impact on generic suppliers here is ruled out, says Kiran Mazumdar Shaw, CMD of Biocon.

She said she completely agrees with Trump's view but doesn't see his views affecting Indian pharma.

“I don’t think these are going to be big issues; if Indian pharma companies are supplying these products to the US markets and if there are no US suppliers, which is mostly the case, this doesn’t affect the Indian pharma companies,” she said.

9:35 am FII view: Abhay Laijawala of Deutsche Bank says based on a bottom-up aggregate of estimates, the Sensex is likely to post earnings growth of 15.4 percent YoY in the December 2016 quarter.

However, a significant chunk of earnings growth is attributable to commodity sectors and an exceptional loss in the base of ONGC, he adds. Excluding oil + metals, Sensex earnings growth comes in at a muted 3.6 percent YoY.

Within the Sensex, he expects sectors like energy, capital goods, telecom, pharma and utilities to post strong growth, while sectors like autos, banks and consumer to report negative earnings growth.

9:22 am Market climbs: The Nifty has hit 8400 briefly first time after November 11. The 50-share index is up 15.35 points or 0.2 percent at 8396 and the Sensex is up 71.34 points or 0.3 percent at 27211.75. About 817 shares have advanced, 380 shares declined, and 244 shares are unchanged.

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The market has opened higher with the Nifty nearing 8400 after US President-elect Donald Trump's speech did not give any specific policy details. The Nifty is up 10.35 points or 0.1 percent at 8391 and the Sensex is up 49.61 points or 0.2 percent at 27190.02. About 571 shares have advanced, 247 shares declined, and 235 shares are unchanged.

Infosys, ONGC, Adani Ports, Tata Motors and Hero MotoCorp are top gainers while Dr Reddy's Labs, Sun Pharma, Lupin, Cipla and ITC are losers in the Sensex.

The Indian rupee gained in the early trade. It has opened higher by 17 paise at 68.15 per dollar versus 68.32 Wednesday.

Mohan Shenoi of Kotak Mahindra Bank said, “President-elect Trump's press conference lacked details on economy resulting in dollar giving up some of its
gains. Asian economies are struggling with the threat of greater US protectionism.”

The Mexican peso weakens to a historic low after US president-elect Donald Trump warned US auto companies would face a high tax for products made south
of the border. The dollar index weakened to 101 mark.

Asian shares traded mixed following a choppy session in the US with stocks ending higher after President-elect Donald Trump held a raucous and freewheeling press conference that analysts said was sparse on economic policy details.

The news conference concluded with Donald Trump, who will be inaugurated as the 45th President of the United States on January 20, not providing further clarity on his proposed policies. Japanese benchmark Nikkei 225 dropped 0.91 percent, as the yen strengthened against the dollar. A stronger yen is generally bad news for Japanese companies as it makes exports more expensive and lowers repatriated profits earned overseas.

Over at Wall Street, the Dow Jones industrial average finished up 0.5 percent to 19,954.28, while the S&P 500 closed 0.28 percent higher at 2,275.32. The Nasdaq composite added 0.21 percent to close at 5,563.65.

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