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Last Updated : Feb 14, 2017 11:01 AM IST | Source: Moneycontrol.com

Nifty struggles below 8800 amid consolidation; Tata Motors falls

Tata Motors fell over a percent ahead of Q3 earnings due later today. A CNBC-TV18 poll expects a 27 percent fall in profit on year-on-year basis and loss of Rs 500 crore on standalone basis.


Moneycontrol Bureau

10:45 am Buzzing:
Sun TV gained 3 percent and Raj TV surged 10 percent after Sasikala's hopes to become a chief minister of Tamil Nadu dashed by Superme Court verdict.

Supreme Court has convicted her in disproportionate asset case and sentenced her to 4 years of imprisonment.

The court has imposed fine of Rs 10 crore on Sasikala. Conviction in DA case has barred Sasikala from contesting elections for 6 years.

10:40 am FII View:
Alexander Redman of Credit Suisse says total dedicated emerging market equity funds including regional funds recorded net inflows of USD 1.1 billion driven primarily by net inflows into pan-emerging market exchange traded funds (ETFs).


Having delivered the second strongest start to the year in over a decade emerging equities are thus far the best performing region among global equities and within less than a percentage point performance of a 19-month index high, he adds.


MSCI emerging markets are now recording positive or neutral breadth of earnings revisions, the most sizeable improvements in the momentum of revisions on the month have been in India and Philippines. The equity market appears appropriately priced given the typical association between earnings revisions, Redman feels.

10:20 am Earnings estimates:
Drug major Sun Pharma's third quarter profit is seen rising 27.4 percent year-on-year to Rs 1,804.6 crore, aided by operational performance.

Close

According to average of estimates of analysts polled by CNBC-TV18, revenue during the quarter may increase 11.6 percent year-on-year to Rs 7,905.3 crore, driven by Sun's authorised generic (AG) launches of Daichi Sankyo drugs in US.


Blood pressure drug Benicar, Benicar HCT, Azor and Tribenzor are the AG launches of Daiichi. Market size of these drugs is USD 2.5 billion.


Analysts say AG sales will offset price erosion that Sun Pharma will face in cancer drug Gleevec generic. Gleevec generic sales are expected to fall around 30 percent QoQ to USD 45 million.


Also read - Buy, sell, hold: 11 stocks that analysts are watching out

10:00 am Market Check


Benchmark indices as well as broader markets were moderately lower amid consolidation in morning as investors awaited last batch of corporate earnings and then focus will be shifted to assembly elections in five states that started last week.


The 30-share BSE Sensex was down 24.32 points at 28327.30 and the 50-share NSE Nifty declined 11.75 points to 8793.30. About 1129 shares fell against 851 advancing shares on the BSE.


Ashwani Gujral of ashwanigujral.com feels the market is likely to consolidate. In the current market breadth scenario, it is difficult for Nifty to take out 9000.


Agreeing with Gujral, Mitessh Thacker of miteshthackar.com said he would be exiting longs only if 8730-8735 on the Nifty is taken out and till then would maintain a range bound outlook.


Tata Motors fell over a percent ahead of Q3 earnings due later today. A CNBC-TV18 poll expects a 27 percent fall in profit on year-on-year basis and loss of Rs 500 crore on standalone basis.


Infosys saw profit booking, down 0.6 percent after management's clarification on all issues raised by the media.

Asian Paints, Hero Motocorp, L&T, Bajaj Auto and Axis Bank were down 0.5-1 percent while Reliance Industries, ITC, HDFC, ONGC, ICICI Bank and SBI continued to support the market, up 0.2-1.3 percent.



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First Published on Feb 14, 2017 10:00 am
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