Moneycontrol Be a Pro
Get App
Last Updated : Sep 09, 2015 10:01 AM IST | Source: Moneycontrol.com

Nifty hovers around 7800, Sensex up over 350 pts; metals up

Vedanta, Hindalco, Infosys, HDFC and ICICI Bank are top gainers. GAIL is down 1 percent.


Moneycontrol Bureau

9:50 am Market check:
The Sensex is up 349.84 points or 1.4 percent at 25667.71 and the Nifty is up 109.75 points or 1.4 percent at 7798.00. About 1440 shares have advanced, 243 shares declined, and 29 shares are unchanged.

Vedanta, Hindalco, Infosys, HDFC and ICICI Bank are top gainers. GAIL is down 1 percent.


9:45 am FII view: For the first time in 25 years, the outlook for India is stronger than China atleast for the next two years, says James Glassman, senior economist at JPMorgan. Despite the myriad challenges facing the Chinese economy, the global economy is in good shape, he told CNBC-TV18.

According to him, the market bounce back is as puzzling as the fall. He does not think there is any need to worry about the correction in equity markets as global fundamentals remain unchanged.

He also believes that with the US economy moving forward, a possible September rate hike is on the cards. He says it is not so much about the kind of data coming out of the United States, but about bringing the Fed policy back to normal. "The longer the Federal Reserve delays hiking rates, the quicker it will have to move. This may be more destructive," he adds.

9:30 am Target cut: Global brokerage firm UBS has trimmed its Nifty target for December-end by nearly 5 percent to 8,200 from 8,600 earlier on account of slower-than-expected recovery in India's economic growth. Further, UBS has lowered its top-down earnings growth for Nifty at 8 percent from 10 per cent for the current financial year. It has also cut the earnings growth estimates to 15 percent from 18 per cent for the next fiscal (2016-17). "Growth recovery will be slow, likely disappointing versus street expectations," UBS Head of India Research Gautam Chhaochharia said in a note.

Don't miss: US economy 'not bad' but 'not booming', says Warren Buffett

After a smart rally yesterday, the market has kick-started Wednesday with a bang. The Nifty has opened above 7800. The 50-share index is up 117.85 points or 1.5 percent at 7806.10. The Sensex is up 413.96 points or 1.6 percent at 25731.83. About 468 shares have advanced, 64 shares declined, and 11 shares are unchanged.

Metal stocks continue to rally with leaders like Hindalco, Tata Steel and Vedanta. Infosys and ICICI Bank are other top gainers in the Sensex. There are no red stocks in the Sensex.

The Indian rupee advanced further in early trade today. It has opened higher by 17 paise at 66.38 per dollar against previous close of 66.55.

NS Venkatesh of IDBI Bank said, "The rupee strengthened against the USD after touching an intra-day high of 66.80/dollar yesterday. We saw selling by custodial banks and some buying from PSBs to meet the oil demand."

"The rupee will take cues from the equity market today and is expected to trade in a range of 66.40-66.72/dollar," he added.


Globally, Wall Street traded after a three-day long weekend and with a bang. Major US indices rallied over 2 percent for their second-best day of the year.

Close

Asian shares surged, inspired by the positive finish in offshore markets and as investors bet on China to step on the stimulus pedal soon. Nikkei rallied 5.7 percent followed by Shanghai (up 1.7 percent) and Hang Seng (up 2.7 percent). And in Europe, equities closed more than 1 percent higher, buoyed by positive data.


In other asset classes, the renewed risk appetite helped the dollar gain against the safe-haven yen, but the greenback still inched lower against the euro. The dollar index was trading below USD 96 mark.


Brent crude rose almost 4 percent to USD 49 per barrel overnight as rally in equity markets helped the global oil benchmark recover substantially.  


Precious metal gold traded steady around USD 1120 an ounce, but it remained close to three-week lows as uncertainty over a looming US interest rate hike persisted.



The Great Diwali Discount!
Unlock 75% more savings this festive season. Get Moneycontrol Pro for a year for Rs 289 only.
Coupon code: DIWALI. Offer valid till 10th November, 2019 .
First Published on Sep 9, 2015 09:15 am
Loading...
Sections
Follow us on
Available On
PCI DSS Compliant