Nifty struggles to hold 8150; ITC, HUL, Asian Paints laggards

Moneycontrol Bureau11:45 am Buzzing: Share prices of Bank of Maharashtra rose 4 percent intraday Thursday as it has decided to raise capital through FPO/Rights issue/QIP etc., upto Rs 1000 crore, subject to the necessary approvals.

The company has posted a net loss of Rs 119.84 crore for the fourth quarter ended March 2016 due to rise in bad loans.

11:30 am Downgrade: CLSA has downgraded Asian Paints to high-conviction sell with a revised target of Rs 900 per share. According to the brokerage firm, Asian Paints is an 'expensive diamond’ with valuations ignoring imminent earning risks. CLSA says that recent 87 percent rally in crude oil prices from the recent lows poses a threat to the elevated gross margins the company has enjoyed recently. It adds Asian Paints’ volume growth has been reasonably volatile, with a 6-12 percent range in the past five years. It warns that a high base in FY16 could act as a dampener for FY17 volume numbers, though there is the possibility of higher contribution from product price hikes now that input costs are firming up.Don't miss: Zee Learn up 7%, puts merger with Tree House on hold

The market is still slipping away as the Nifty is struggling to hold 8150. The 50-share index is down 17.70 points or 0.2 percent while the Sensex is down 49.18 points or 0.2 percent at 26664.75. About 935 shares have advanced, 1075 shares declined, and 113 shares are unchanged.

Coal India, Hero MotoCorp, Tata Motors, Bharti Airtel and Infosys are gainers while HUL, ITC, Asian Paints, Wipro and Lupin are losers in the Sensex.

Oil prices were flat as investors awaited the outcome of an OPEC meeting later in the day in Vienna.

Few people are expecting a deal to cap production, with Iran already declaring it is unwilling to take part in any such deal at the Organisation of the Petroleum Exporting Countries talks. Crude prices briefly topped USD 50 last week for the first time this year as short-term production disruptions in Canada and Nigeria eased concerns about abundant global supplies, but they remain less than half of their 2014 peaks.