Vote on Account: BSE Sensex gains over 50 pts; Bharti up 1%, Coal India weak

Moneycontrol BureauLive Market Commentary

9:55 am Stock in focus: Shares of Suzlon fell 9 percent intraday on Monday even though its losses shrunk in December quarter. The wind turbine maker’s Q3 FY14 net losses fell to Rs 1,075.25 crore from Rs 1,154.53 crore a year ago.

The Pune-based company's total income during the third quarter ended December 31 increased to Rs 5,052.2 crore from Rs 4,047.71 crore a year-ago.

"We are reporting losses mainly due to lower sales, adverse impact of foreign currency fluctuation and the restructuring cost that comes in the Ebitda. But our sales have improved on year-on-year basis," Suzlon Group finance head Kirti Vagadia said.

 9:45 am FII view: Adrian Mowat, Chief Asian & Emerging Equity Strategist at JPMorgan believes the finance minister P Chidambaram will achieve the FY14 fiscal deficit target. He expects the Vote on Account to have a modest impact on the Indian market.

For Mowat, one of the key things to watch out for would be whether the government can cut subsidy to 1.25 percent of GDP from 2 percent. He further expects FY15 borrowing target at Rs 6.3 lakh crore.

He believes the next government will be more populist in nature.

 9:35 am Market outlook: Trader Atul Suri is positive on the Indian equities and says that the market has done better than its peers.

"India has been very impressive in spite of FII selling and in spite of what is happening in the emerging market space; we are still doing well and if you go low and starts seeing sector and stock specific; there are some very impressive stories," he told CNBC-TV18 in an interview. He expects the Nifty to find support in 5,970-6,000 range.  He further added that fundamentally, strong stocks will continue to be rewarded and market participants are likely buy stocks on dips than the index.

9:25 am Buzzing: Shares of DLF jumped over 1 percent intraday on Monday after it announced December quarter earnings. The realty firm DLF today has reduced net debt by over Rs 2,500 crore to Rs 17,400 crore following proceeds from sale of luxury hotel chain Amanresorts, and a refund from DDA.

The net debt had increased to Rs 19,926 crore at the end of December quarter, from Rs 1,9508 crore as on September 30.

"Current net debt is at Rs 17,400 crore (approx). We maintain the FY14 guidance of net debt of Rs 17,500-18,000 crore," DLF said.

 Don't miss: 8 things market will watch out in Chidambaram's speech 

The market has opened on a positive note as all eyes are focused on the Vote on Account that Finance Minister P Chidambaram will announce in the Parliament today at 11 am. The Sensex is up 71.76 points at 20438.58, and the Nifty is up 9.80 points at 6058.15. About 185 shares have advanced, 84 shares declined, and 11 shares are unchanged.

Tata Motors, Tata Power, L&T, Axis Bank and Dr Reddy's Labs are top losers in the Sensex. Among the losers are Coal India and Reliance.

The Indian rupee opened on flat note at 61.96 per dollar versus 61.92 Friday. The dollar languishes at six-week lows against a basket of major currencies, still struggling to get over yet more disappointing US economic data.

Traders say Friday's close below 80.15 could pave the way for further downside. And the euro has touched a three-week high of USD 1.37.

Asian markets rose on Monday while investors shrugged off weak economic data from Japan.

Meanwhile, crude prices gain, supported by a weaker dollar. And in the precious metals space, gold prices hit fresh three-month highs adding to gains after posting its biggest weekly rise in six months.