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Last Updated : Aug 03, 2016 11:09 AM IST | Source: Moneycontrol.com

Sensex falls 200pts, Nifty struggles below 8600; Midcap down too

ITC fell more than 2 percent on profit booking after rising nearly 4 percent in previous session. HDFC, Infosys, Reliance Industries, HUL and Bharti Airtel slipped over a percent while Adani Ports gained 1 percent.


Moneycontrol Bureau

10:45 am FII View:
Mahesh Nandurkar of CLSA feels with the Nifty now trading at 16.7x 12-month forward earnings or 1 standard deviation above its last 10-year average, there are not that many value stocks left.


"Of the 125 stocks we cover, there are still 40 stocks that trade below average. Many of these are state-owned banks," he says.


Top value picks (below 10-year average valuation) are Reliance Industries, Power Grid, ICICI Bank, HCL Technologies, Hindalco Industries and Axis Bank.

Close

Oil marketing companies (IOC, HPCL) though not trading at a discount to average still have undemanding valuations, Nandurkar says, adding expensive sell/underperform ideas are Havells, Motherson Sumi, TVS Motor, HUL, Asian Paints and Voltas.

10:15 am Earnings:
Country's fourth largest IT services exporter HCL Technologies started off financial year 2016-17 on a strong note by beating analysts' expectations on all parameters. Profit and revenue increased by 6.3 percent and 6 percent to Rs 2,047 crore and revenue at Rs 11,336 crore on sequential basis, respectively.


Profit was estimated at Rs 1,890 crore on revenue of Rs 11,255 crore for the quarter, according to average of estimates of analysts polled by CNBC-TV18.


Dollar revenue grew by 6.5 percent to USD 1,691 million on QoQ basis, which was expected at USD 1,678.5 million.


HCL Technologies expects FY17 revenue growth in range of 12-14 percent in constant currency terms and operating margin (EBIT) in range of 19.5-20.5 percent.

Also read - India on the cusp of recovery in earnings cycle: JPMorgan


10:00 am Market Check


Equity benchmarks extended losses after flat opening, dragged by FMCG, HDFC group, healthcare and select technology stocks. Investors eagerly waited for the GST bill that is likely to be tabled in the Rajya Sabha today.


The 30-share BSE Sensex was down 187.69 points at 27794.02 and the 50-share NSE Nifty fell 47.30 points to 8575.60. The broader markets also declined half a percent due to weak market breadth.


More than two shares declined for every share advancing on the Bombay Stock Exchange.


ITC fell more than 2 percent on profit booking after rising nearly 4 percent in previous session. HDFC, Infosys, Reliance Industries, HUL and Bharti Airtel slipped over a percent while Adani Ports gained 1 percent.



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First Published on Aug 3, 2016 10:00 am
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