Sensex, Nifty hold gains; BHEL, Hindalco, Axis slip 1%

Moneycontrol Bureau

10:50 am Market outlook: Elara Capital has put its faith in consumption sector owing to increase in consumption of FMCG names like Marico, Dabur, Emami & HUL. Speaking to CNBC-TV18, Harendra Kumar of Elara Capital says next leg of growth is going to come from consumption sector with midcap FMCG names staying outperformers. The other pocket that is going to gain big time belongs to the digital India theme. He names Tata Communication as a big beneficiary of the digital India growth.

10:30 am Brokerage view: CLSA has reiterated Maruti as its high conviction buy stock with a target of Rs 4450 per share. Shares of the auto company were up 1 percent intraday on Monday as the brokerage sees multiple catalysts driving its strong earnings growth.

CLSA expects its market-share gains to accelerate with rollouts of four new cars (a S-Cross crossover, a light commercial vehicle, a premium small car and a compact urban SUV) in FY16. It estimates Maruti’s market share to improve to 46.7 percent by FY17 from 45 percent in FY15. It forecasts an 11 percent export CAGR over FY15-17 with its entry into new markets and sees a 13 percent CAGR for total volumes. Growth of the passenger-vehicle (PV) industry may improve from 4 percent in FY15 to 6.2 percent in Q1 FY16 and will rise higher as the economy recovers.

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The market is still holding early gains. The Sensex is up 61.13 points at 27722.53, and the Nifty  is up 16.80 points at 8377.35. About 1242 shares have advanced, 589 shares declined, and 112 shares are unchanged.

GAIL, Sun Pharma, Cipla, Bharti Airtel and Dr Reddy's Labs are top gainers in the Sensex. BHEL, Hindalco, Axis Bank, L&T and Coal India are among losers.

Oil prices fell in Asia as Iran and major western powers said they were closer than ever to a landmark nuclear deal that would lift sanctions and see Tehran's crude exports return to global markets. A forecast by the International Energy Agency (IEA) for slower world oil demand next year was also weighing on the market, analysts said.

Gold edged lower, dragged down by the euro after a weekend emergency summit to tackle Greece's debt crisis yielded no deal and with the US Federal Reserve still on track to raise interest rates this year. Greece will now be required to push legislation through parliament this week to convince its euro zone creditors to release funds to avert a state bankruptcy and start negotiations on a third bailout programme estimated at up to 86 billion euros (USD 95.5 billion).

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