Moneycontrol Bureau11:55 am Rajanomics: Outgoing Reserve Bank of India Governor Raghuram Rajan attacked critics of his monetary policy stance saying the interest rates the central bank had set during his tenure were not too high. In a speech, Rajan challenged them to show how inflation is "very low" before accusing him of "being behind the curve" in his focus on containing price rise than on growth and debunked such criticism as mere 'dialogues'. Paul Mackel, Managing Director - Head of Asian Currency Research at HSBC, agreed with Rajan's views, saying that he does not think the central banker had been behind the curve in cutting interest rates. Mackel told CNBC-TV18 that a final rate cut at Rajan's last monetary policy review is unlikely. "We think the RBI will cut interest rates in the fourth quarter of FY17," he said.11:45 am Result poll: Midcap IT company Mindtree's first quarter profit is likely to fall 0.67 percent sequentially to Rs 155 crore on margin contraction, according to average of estimates of analysts polled by CNBC-TV18. Revenue in Q1 is seen rising 2 percent quarter-on-quarter to Rs 1,351 crore while revenue in dollar terms may increase 3.3 percent to USD 202 million and 3 percent in constant currency. Revenue growth may be driven by digital business that accounts for 39 percent of revenue and grew by 37.6 percent in FY16. Operating profit (earnings before interest, tax, depreciation and amortisation) may grow marginally at Rs 227 crore in Q1FY17 against Rs 225.9 crore in Q4FY16 but margin may contract by 25 basis points to 16.8 percent in same period due to visa costs (seasonal) that partly offset by operating efficiencies. Margin declined from 20.8 percent in Q3FY15 to 17.06 percent in Q4FY16. Pricing pressure in traditional services is likely to weigh on margin in FY17, feel analysts.11:30 pm Outlook: Harendra Kumar, MD and Head - Institutional Equities, Elara Capital, said he would continue to buy Infosys at lower levels. "Valuations continue to remain comfortable," he said. Reliance Industries, also posted a robust set of numbers but Kumar said its profits were powered by inventory gains and product regime and that the stock was fairly valued. "It may see immediate buying but I don't see much upside," he said. Investors should continue to hold private bank shares, as they will likely post decent returns over a period of 18-20 months, according to Kumar.Don't miss: HUL Q1 profit seen up 10% on margin; volume growth may be around 5%
The market is on a surge with keen eyes on the monsoon session of Parliament that begins today. The Sensex is up 164.21 points or 0.6 percent at 28000.71 and the Nifty is up 40 points or 0.5 percent at 8581.40. About 1503 shares have advanced, 701 shares declined, and 117 shares are unchanged. Bajaj Auto, Tata Motors, Maruti, Axis Bank and Reliance are top gainers in the Sensex while Bajaj Auto, Tata Motors, Maruti, Axis Bank and Reliance are laggards.
Oil prices extended their rise in Asia as robust economic data from the United States and China fuelled hopes of a pick-up in demand from the world's top two economies. While a sense of calm has returned to Turkey following a failed coup attempt over the weekend, analysts said the situation remains volatile as Turkish authorities press on with a ruthless crackdown against the plotters, detaining 6,000 people.
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