Moneycontrol Bureau11:55 am Interview: The recently inked Rosneft-Essar Oil deal will help the latter pare its debt and help corporates that have direct exposure to the company. Essar is planning to reduce its group debt -- Rs 88,000 crore -- by more than 50 percent using the Rs 86,100 crore proceeds that it will receive in the all-cash deal. IDBI Bank, which has exposure to the company, says that corporates including the bank will have to look at how Essar plans to disburse the amount. “They (Essar) will also use some of these funds for reducing their debt and if that happens, some relief will come for IDBI also surely,” said Kishor Kharat, MD of IDBI Bank.11:45 am Market outlook: IT giants TCS and Infosys both released their second quarter results last week and with context to the earnings results Infosys currently looks better than TCS as there is not much downside risk to it from here onwards, says Sanjay Dutt of Quantum Securities. In an interview with CNBC-TV18, he said that there is a lot of earnings uncertainty in the market the technical structure of the market seems weak at present. He said that the equities market could see much lows due to the recent sell-off trend in emerging markets and Nifty may see a 200-300 point fall.11:30 am Buzzing: Prozone Intu Properties shares were locked at 20 percent upper circuit after ace investor Radhakishan Damani picked up over a percent stake in the company. Radhakishan S Damani has bought 19.7 lakh equity shares (representing 1.29 percent stake) of the company during July-September quarter. Rakesh Jhunjhunwala also held 2.06 percent stake in the Mumbai-based real estate development company, as per the latest shareholding pattern available on the exchange. Big institutions like Acacia Partners, Cavendish Asset Management, Nailsfield etc have 8.37 percent shareholding in the company that currently has zero debt and cash of Rs 50-60 crore on its books.Don't miss: Buy, sell, hold: 8 stocks to watch out as Q2 earnings start
The market is completely flat though bank heavyweights are leading support. The Sensex is up 46.20 points or 0.2 percent at 27719.80 and the Nifty is down 0.25 points at 8583.15. About 1524 shares have advanced, 812 shares declined, and 137 shares are unchanged. Banks stocks like Axis Bank, ICICI and SBI are gaining on Essar oil deal. Essar Oil deal may directly benefit ICICI Bank's exposure. ICICI's 'watchlist loans' portfolio stands at around Rs 38723 crore.
ICICI Bank is up 6 percent, Axis Bank, SBI, NTPC and Tata Steel are top gainers in the Sensex. Bharti, Asian Paints, M&M, HDFC Bank and Bajaj Auto are losers in the Sensex.
Neelkanth Mishra of Credit Suisse says while the broader Indian market hasn't moved much in the last two months, it has continued to outperform global equities marginally.
According to him, September 2016 results are likely to be weak, and the pace of cuts may pick up. Mishra says add global volatility, and broader markets may stay rangebound till signs of a broad-based economic pick-up become visible.
He says he expects indicators to show a pick-up by CY16-end, but GST start in FY18 could cause disruption for a few quarters, affecting earnings.
Mishra stays cautious and watchful on broader markets for now.