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Last Updated : Sep 30, 2016 10:01 AM IST | Source: Moneycontrol.com

Nifty starts October series above 8600; Sensex, Midcap volatile

The market started off the first day of October series on a positive note, rebounding sharply after previous day's sharp sell-off.


Moneycontrol Bureau

9:55 am Economy:
Stage is set today for a six- member panel taking over job of setting interest rate after the government notified the new Monetary Policy Committee that will hold its first review on October 4.


"Monetary Policy Committee (MPC) constitution under the Reserve Bank of India Act, 1934, notified," the finance ministry said.


The MPC, in which three members are from the RBI and three others from the government, will target to keep inflation at 4 per cent with an upper and lower tolerance level of 2 per cent.

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The government, last week, had named three academics to join RBI Governor Urjit Patel, his deputy in charge of monetary policy R Gandhi and central bank executive director Michael Patra on the MPC.


9:45 am Upcoming: Bangalore-based retailer Shankara BuildPro, which is into home improvement and building products, has filed for an initial public offering to raise about Rs 450 crore. According to market sources, the company has filed the draft red herring prospectus (DRHP) with the market watchdog Sebi today and proposes to mop up between Rs 400 crore and Rs 450 crore through the sale, which will involve promoters and investors diluting their stakes to the tune of 35 percent. The proposed IPO will enable private equity firm Fairwinds, which had pumped in close to Rs 120 crore in 2011, to exit Shankara, the sources told PTI today.

9:35 am China data:
China's factory sector struggled to gain speed in September while Japanese inflation went backwards in August despite the best efforts of policymakers, underscoring the limits of stimulus in reviving world growth.


Friday's unflattering figures bookmarked a week in which the IMF warned it would likely downgrade forecasts for the US economy, and the World Trade Organization slashed its outlook for global trade flows.


That was unwelcome news for markets spooked by troubles at Deutsche Bank, whose US shares took a hammering on reports some hedge funds had reduced financial exposure to Germany's largest lender.


9:25 am Market Update: Equity benchmarks entered into consolidation phase after yesterday's sell-off. The Nifty continued to hover around 8600 level.

The Sensex was down 17.64 points at 27809.89 and the Nifty down 7.05 points at 8584.20. The market breadth was marginally positive as about 877 shares advanced against 684 declining shares on the BSE.

9:20 am FII View:
Veteran emerging markets investor Mark Mobius thinks that the Indian government's reform drive would aid shares and drive investment into the country even as he thinks concerns over the fate of struggling Deutsche Bank would unnerve global markets.


In an interview with CNBC-TV18, Mobius, Executive Chairman, Templeton Emerging Markets Group, said any dip would be a buying opportunity for Indian shares and that he was a big buyer of the consumption theme, followed by telecom and Internet companies.


Replying to a question on valuations, he said they were a function of interest rates and given the falling rate environment, even a price-to-earnings ratio of 30 times -- which translates into a Sensex target of 45,000 given FY17 earnings-per-share of Rs 1,500 -- would be "tolerable".

Also read - Interest rate on PPF, other savings schemes, cut by 0.1%

9:15 am Market Check


The market started off the October series on a positive note, rebounding sharply after previous day's sharp sell-off.

The 50-share NSE Nifty reclaimed 8600 level, rising 10.95 points to 8602.20. The 30-share BSE Sensex was up 39.84 points at 27867.37. GAIL, Wipro, Infosys, Sun Pharma and BHEL are top gainers while Adani Ports, Dr Reddy's, Cipla, Coal India and ICICI Bank are losers in the Sensex.

The broader markets outperformed benchmarks, rising more than 0.4 percent.

Technology and oil stocks saw short covering whereas select banks and FMCG stocks remained under pressure.

The Indian rupee remained unchanged in opening at 66.85 per dollar against previous close of 66.85.

Bhaskar Panda of HDFC Bank says news about India's overnight raid on terror camps at the Line of Control jarred all markets in India.

He feels the USD-INR pair is likely to trade in a range of 66.60- 66.90/dollar depending on further news.

The US dollar snapped its longest slide since August as gross domestic product and jobless claims data bolstered speculation the Federal Reserve is set raise interest rates by year-end.

Asian markets were lower across the board on the final trading day of the quarter, after concerns over Deutsche Bank's stability drove down sentiment in US markets.



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First Published on Sep 30, 2016 09:15 am
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