Strong Europe helps uplift Nifty mood: Udayan

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Strong Europe helps uplift Nifty mood: Udayan

European markets are quite strong today and that's really the genesis of the optimism in the late afternoon session, says CNBC-TV18 managing editor Udayan Mukherjee.

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Excerpts from Closing Bell on CNBC-TV18 Watch the full show » ALSO READ See what other CNBC-TV18 anchors have to say

It's not been a bad day for the market. We had a bit of a weakish patch earlier in the day, but the Nifty has stabilised and is back above that 5,400 level. European markets are quite strong today and that's really the genesis of the optimism in the late afternoon session, says CNBC-TV18 managing editor Udayan Mukherjee.

State Bank of India is quite stable post its earnings, down just about 1%, so no great reaction on the negative side for SBI. As we speak, all things are stable with the Nifty just above that 5,400 mark.

Though asset quality numbers were not great , I don't think the market's in a frame of mind now where the stock needs to correct very substantially. It had a weakish spell in the morning leading up to the numbers, but I guess shorts have covered post the earnings because while the asset quality numbers are poor, the numbers overall are not terrible. SBI had worse numbers last quarter, so to that extent I think part of it might have been priced in.

Yes the gross none-performing asset (NPA) picture is not good, neither is the provisioning coverage, so I doubt the stock will run away from here after these kind of asset quality numbers; these concerns will linger for some time given that the last two quarters on the trot have been bad on the gross NPA front. But the stock does not fall too much from here because people might have gone in short and they were probably covering up shorts now so the stock might be moving in a narrow range now.

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