Oct 17, 2016 10:05 AM IST | Source:

Nifty hits 8600 but soon slips into red; ICICI, Infosys, SBI up

ICICI Bank, NTPC, Infosys, SBI and GAIL are top gainers while Reliance, Bajaj Auto, TCS and HDFC are losers in the Sensex.

Moneycontrol Bureau

9:55 am SBI on Essar deal: 
Speaking to CNBC-TV18, State Bank of India's Chairman Arundhati Bhattacharya said that the Essar deal will get the group's debt to move to another organisation and believed it was a good deal with Rosneft. “I am hoping it will help Essar Group to bring down leverage and stress they have in other accounts.”

State Bank of India (SBI) has proposed to launch a joint venture with Canadian company Brookfield Asset Management. Brookfield has agreed to commit Rs 7,000 crore to buy distressed assets. India’s largest lender will contribute up to 5 percent of the total investments made by the fund.

Bhattacharya said that Brookfield is still looking for deals, adding that we need to do much more to ease business.

9:45 am FPIs pull out money: Foreign investors have pulled out nearly Rs 6,000 crore from the Indian debt markets in the first two weeks of this month, after pumping in a staggering amount in September.

However, Foreign Portfolio Investors (FPIs) have pumped in just Rs 180 crore in the stock markets during the period under review.

"The recent rate cut by RBI is one of the factors for the outflow. With downward pressure on bond yields, debt does not seem attractive," SAS Online Chief Operating Officer (COO) Siddhant Jain said.

9:30 am Q2 Poll: Net profit of UltraTech Cement may rise 40 percent to Rs Rs 550 crore in July-September quarter from Rs 393.9 crore in corresponding quarter last fiscal. According to CNBC-TV18 poll, the cement major's total income, however, may slip 2.4 percent at Rs 5545 crore compared to Rs 5682 crore in year-ago period. During the period, its operating profit may climb 12 percent at Rs 1110 crore versus Rs 989 crore while operating profit margin may stand at 20 percent against 17.4 percent.

Don't miss: Buy, sell, hold: 8 stocks to watch out as Q2 earnings start

The market opened higher Monday but soon run out of breath. After touching 8600 briefly, the Nifty is down 1.25 points at 8582.15 and the Sensex is up 15.52 points at 27689.12.

ICICI Bank, NTPC, Infosys, SBI and GAIL are top gainers while Reliance, Bajaj Auto, TCS and HDFC are losers in the Sensex.

The Indian rupee opened lower by 10 paise at 66.80 per dollar versus 66.70 Friday.

Pramit Brahmbhatt of Veracity said, "Due to global pressure and constant FII outflow, we expect the rupee to depreciate for the day. The trading range for the spot USD-INR pair is seen between 66.60-67/dollar today."

The dollar on Friday posted its best weekly performance in more than seven months after strong US retail sales and producer prices data for September reinforced expectations the Federal Reserve would raise interest rates in December.

Asian shares dipped while the dollar held firm near seven-month high against a basket of major currencies after comments from Federal Reserve Chair Janet Yellen boosted long-dated US bond yields.

MSCI's broadest index of Asia-Pacific shares outside Japan dipped 0.2 percent in early trade while Japan's Nikkei rose 0.2 percent.

The big trigger this week will be the final US presidential debate on Wednesday. According to a New Wall Street journal/NBC News poll - Hillary Clinton is consolidating a substantial lead over Donald Trump less than a month before Election Day, picking up support from women and swing voters. Heading into the final presidential debate in Las Vegas on Wednesday, Hillary Clinton led trump by 11 percentage points among likely voters - a big jump from the six-point edge she held in mid-September.

Crude oil prices fell on Friday as a stronger dollar weighed on the market and an industry report showed US oil drillers continue to ramp up activity with prices holding above USD 50 a barrel.

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