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Last Updated : Jun 28, 2016 09:59 AM IST | Source:

Nifty opens above 8100, Sensex flat; Bharti, Coal India gainers

Bharti Airtel, Hero MotoCorp, Coal India, Asian Paints and BHEL are top gainers while Tata Motors, Wipro, ICICI Bank, Infosys and TCS are losers in the Sensex.

Moneycontrol Bureau

9:55 am FII view:
Laurence Balanco of CLSA said that Nifty is likely to trend up to 8700-9100 levels by year end.

He adds that India and Philippines are among the better Asian markets that are immune to shocks arising from Brexit. Neither of these markets will retest their January lows, he said. He warns there could be volatility in the next two months arising out of Brexit. The US dollar index has been stuck in a range since 2015, he said, adding that he sees an upside for the US currency.

9:45 am Analysts meet: With new entrants joining the telecom space, Idea Cellular feels that its revenue market share is unlikely to be effected. In an analysts meet, Idea Cellular management said that it is comfortable with revenue market share estimate being largely flat at 19.5 percent for next 3-4 years despite Jio launch as it is well-placed to consolidate tail at the low-end. Idea has 18.9 percent overall revenue market share and 31.1 percent  market share in top 8 circles, gaining incremental market share of 33.5 percent and 51.6 percent  respectively in last 12 quarters.


The management is confident that after Reliance Jio launch, top three telecom companies overall market share may not get impacted benefitting by adding low-end subs although they may lose some high-end subscribers. Idea considers low-end customer to be profitable and does not see margin dilution from this subscribers base.

9:30 am FII view: Market seems to be over-reacting to the Brexit event, feels James Glassman of JPMorgan although he does expect some short-term volatility and advises caution.

In an interview to CNBC-TV18, Glassman says Brexit does not change the outlook for global economy, adding, in fact, it offers an opportunity to jump back into the market.

"Britain is not going to cut off its links with the EU. It is not like it dies, it just disappears," Glassman says.

He believes global markets are adjusting to the new reality but are not freezing as was the case during the Lehman crisis. As long as global economy is on track, he does not see any reason for emerging markets to not perform well.

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The market has opened flat but the Nifty managed to scale 8100. The 50-share index is up 9.30 points at 8104 and the Sensex is up 7.59 points at 26410.55. About 573 shares have advanced, 164 shares declined, and 40 shares are unchanged.

Bharti Airtel, Hero MotoCorp, Coal India, Asian Paints and BHEL are top gainers while Tata Motors, Wipro, ICICI Bank, Infosys and TCS are losers in the Sensex.

The Indian rupee gained in the early trade. It has opened higher by 18 paise at 67.77 per dollar against 67.95 Monday. The pound arrested its drop versus the dollar amid signs the market may be taking a breather following the UK's shock vote to leave the european union. All eyes on the two-day EU leaders summit commencing later today. The US dollar index above 96 levels.

Ashutosh Raina of HDFC Bank said, "The markets continue to be in a risk-off mode after the recent Brexit referendum. The dollar index has moved to recent highs with most of major and EM currencies touching their recent lows."

Asia markets opened lower with the Nikkei 225 down 1.32 percent, while across the Korean Strait, the Kospi dropped 0.48 percent. Australia's ASX 200 was down 1.37 percent. The pound took another tumble on Monday, falling to a fresh 31-year low against the dollar and extending losses to nearly 12 percent from levels before the Brexit results were announced.

US stocks closed about 1.5 percent lower yesterday, extending Friday’s post-Brexit sell-off with materials leading decliners. The Dow Jones and S&P 500 ended at their lowest since mid-March.

Standard & Poor and Fitch downgraded United Kingdom’s credit rating. S&P downgraded the nation by two notches, from "AAA" to "AA," citing last week's referendum that approved a British exit from the European Union.

In other asset classes, crude prices rebound after slipping over 3 percent overnight while Brent is above 47 dollars per barrel. Gold prices trimmed gains but continued to trade near the two-year high.

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First Published on Jun 28, 2016 09:15 am
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