Jan 13, 2015 10:15 AM IST | Source:

Nifty hovers around 8350; Hindalco, Axis, L&T early gainers

Hindalco, Axis Bank, BHEL, L&T and ICICI Bank are top gainers. M&M, GAIL, ONGC, Cipla and NTPC are among the laggards.

Moneycontrol Bureau

9:50 am Share purchase: Hitherto unknown Kamlesh Auto has purchased shares of  SpiceJet worth over Rs 6.3 crore through a bulk deal.

Kamlesh Auto acquired 35 lakh shares at a price of Rs 18.23 apiece. At that price, total value of the transaction is worth over Rs 6.3 crore, according to a filing by the carrier to the BSE.

The bulk deal comes at a time when the crisis-hit airline is expected to receive the first round of funding as part of an estimated USD 200 million investment plan.

SpiceJet had presented a revival plan to the Civil Aviation Ministry in late December but was asked to submit a revised plan with more details. he carrier's founding promoter Ajay Singh has also come to the rescue, with Singh and a US-based investment fund planning to invest in the airline.

9:30 am RBI rate cut? Rohini Malkani, Citi says both sets of macro data beat expectations. “Going forward, while CPI will likely trend to 5.5 percent in January-March quarter as the base effects reverse, the outlook remains sanguine due to commodity prices, government measures on food inflation and deceleration in rural wages,” she adds.

She expects CPI to undershoot RBI's 6 percent target through 2015 and average 5.5 percent, strengthening the case for monetary easing. “On rates, while the fiscal deficit remains a challenge, given the growth-inflation dynamics, we maintain our view of the first rate cut in Q1CY15 and a cumulative 100bps cut till FY16... but wouldn't be surprised if RBI does cut before the February Budget,” says Malkani.

Don't miss: Air India reduces fares by up to 50% for domestic flights

It is another flat opening at Dalal Street. The Sensex is up 48.57 points at 27633.84 and the Nifty is up 23.15 points at 8346.15. About 465 shares have advanced, 133 shares declined, and 276 shares are unchanged.

Hindalco, Axis Bank, BHEL, L&T and ICICI Bank are top gainers. M&M, GAIL, ONGC, Cipla and NTPC are among the laggards.

The Indian rupee opened higher by 8 paise at 62.08 per dollar against previous day's closing value of 62.16 a dollar.

The dollar fell against the yen in volatile trading, pressured by weakness in US stocks as the currency's positive outlook was somewhat diminished by surprisingly weak US wage data on Friday.

Ashutosh Raina of HDFC Bank said, "The dollar index continues to hover near 92 and gained against most of major and EM currencies. The USD/INR currency pair is back in the 62-63 range and has defied global dollar strength. The pair can react positively to the IIP and inflation numbers."

Among global markets, stocks declined in the US, extending a two-week slide, as worries about the falling price of oil took hold before the start of quarterly earnings. The CBOE volatility index jumped nearly 12 percent to 19.60. Alcoa reported fourth-quarter results. The aluminum producer gained in after-hours trading after delivering earnings and revenue that beat estimates.

In Europe, shares regained some ground, ending in positive territory as speculation on further stimulus from the European Central Bank boost sentiment, even as the oil price continued to tank.

Asian stocks are seeing selling pressure this morning on weak US lead. Japanese markets are trading near one-week lows after being shut for a holiday on Monday.

In commodities, Brent dropped below USD 48 per barrel and Nymex crude slipped to trade at around USD 45 after analysts at Goldman's lowered their three-month price forecast for Brent to USD 42 per barrel from USD 80 and cut Nymex crude to USD 41 from USD 70 per barrel.

From precious metals space, gold gains as dollar slips with investor sentiment boosted by shifting expectations on when US interest rates may rise.

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