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Last Updated : Dec 16, 2016 10:24 AM IST | Source: Moneycontrol.com

Sensex flat, Nifty breaks 8150; Infosys, Tata Motors gain

Indian equities rebounded in early trade Friday after correction in previous session. The broader markets also opened higher with moderate gains.


Moneycontrol Bureau

9:52 am Market update:
Equity benchmarks were volatile due to lack of domestic and global cues.

The Sensex was up 6.31 points at 26525.38 and the Nifty declined 3.70 points to 8149.90. About 1011 shares advanced against 615 declining shares on the BSE.

9:45 am Interview:
The board of Brigade Enterprises has approved the restructuring of its business by hiving off the hotel business into a separate subsidiary.


In an interview with CNBC-TV18, Suresh Kris, CFO of Brigade Enterprises said that the company took this decision as its hospitality business had grown with a substantial number of rooms.


The company currently has 1,000 keys and three operational hotels and plans to add two more hotels going ahead.

9:39 am Nomura on Axis Bank:
Nomura has upgraded Axis Bank to buy from neutral with increased target price at Rs 550 (from Rs 540 earlier) as asset quality risks priced in.

Close

The brokerage house says the bank is now catching up on stress recognition with peers. It feels revised slippages/credit cost guidance factored in the stress adequately.


Nomura expects normalised return on equities of 16.5-17 percent beyond this credit cycle and sees little scope for negative surprise on asset quality.

9:31 am FII View:
"Of the 36 monthly economic indicators that we track, data for November is available for 22. The data is far better than what was initially feared," Mahesh Nandurkar of CLSA says.


The possible reason is that December will likely capture the full impact of demonetisation, as some upfronting of payments with old notes happened in November, according to him.


However, corporate commentary has gradually improved and the most-bullish commentary was issued by Maruti Suzuki, Eicher Motors and Titan, that activities have normalised, Nandurkar says.


Also read - See re weakening against $; secular upswing underway: Economist

9:15 am Market Check

Indian equities rebounded in early trade Friday after correction in previous session. The broader markets also opened higher with moderate gains.

The 30-share BSE Sensex was up 65.17 points at 26584.24 and the 50-share NSE Nifty rose 24.60 points to 8178.20. The BSE Midcap and Smallcap indices gained 0.3 percent each.

Infosys, HDFC, Tata Motors, TCS, Maruti Suzuki and L&T advanced 0.2-1 percent.

Axis Bank gained further, up 0.5 percent after the bank has suspended 24 employees due to irregularities in exchanges and deposits of money.

Sun Pharma extended losses a bit, falling half a percent after losing over 4 percent in previous session.


The Indian rupee has opened higher at 67.82 to the dollar compared with 67.83 in previous session.


Yesterday, it ended at lowest closing level against dollar since December 6, especially after the US Federal Reserve on Wednesday hiked interest rate by 25 basis points to 0.5 percent from 0.75 percent and announced hawkish outlook of three rate hikes in 2017 against two hikes expected in Fed's September policy.


Bhaskar Panda of HDFC Bank says US Federal Reserve delivered as per market expectations. Hawkish undertone has pushed Dollar index to 14-year high.


This will impact USD-INR pair as well, he feels. He expects a range of 67.90-68.30 against the US dollar.

Asian shares were higher as currency swings captured attention with the Chinese yuan at its lowest point against the dollar since May 2008 and Japan stocks up slightly on recent yen weakness.

US stocks rose on Thursday, led by gains in bank shares, a day after the Federal Reserve raised interest rates for the second time in nearly a decade.



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First Published on Dec 16, 2016 09:15 am
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