Sensex, Nifty rangebound; Mid, Smallcap continue to outperform

Moneycontrol Bureau2:55 pm Market Update: Equity benchmarks continued to be directionless due to lack of global and domestic cues. The Sensex fell 36.57 points to 25586.78 and the Nifty declined 3.90 points to 7787.40.More than two shares advanced for every share declining on the Bombay Stock Exchange.2:40 pm Sugar output: Country's sugar output rose by 6.5 percent to 7.98 million tonnes in the first three months of the 2015-16 season while exports were 3,00,000 tonnes in the same period, industry body ISMA said today.Ex-mill sugar prices have improved in the past fortnight by 1-2 per kg but prices still remained below cost of production during October-November period of this season. As per the latest production data released by Indian Sugar Mills Association (ISMA), the country's overall output has increased to 7.98 million tonnes in the October-December period of this year, up by 6.5 per cent from 7.49 million tonnes in the year-ago period.

2:20 pm UBS' Nifty target: Global financial services major UBS today said it is "overweight" on India but sees limited room for a re-rating and forecast an end-2016 Nifty target of 8,200. "We see limited room for a re-rating and forecast an end-2016 Nifty target of 8,200 based on a 15x one-year forward PE multiple," it said in a research note adding that "our GEM/APAC strategists remain overweight on India. According to the Swiss firm, there were big earning downgrades in 2015 and more are likely this year.

"Consensus FY16/FY17/FY18 forecasts of 10 percent/20 percent/18 percent earnings growth still appear optimistic," it said adding that cuts in 2016 may remain significant at around 8 percent.

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The market continued to be rangebound in afternoon trade but the broader markets outperformed equity benchmarks. European markets rebounded after taking big knock in previous session on Chinese sell-off.

The 30-share BSE Sensex fell 29.60 points to 25593.75 and the 50-share NSE Nifty declined 3.60 points to 7787.70 while the BSE Midcap gained 0.3 percent and Smallcap rose 0.7 percent.

The market breadth remained strong as more than two shares advanced for every share declining on the Bombay Stock Exchange.

European markets opened higher today despite volatile trade in China, following a rout in the previous session. The pan-European STOXX 600 was trading over 0.8 percent higher.

Asian markets remain firmly in focus for investors after Chinese equities plunged on Monday on the back of weaker manufacturing surveys that renewed concerns for the country's growth prospects.