Sensex, Nifty continue to struggle; FMCG cracks, pharma gains

Moneycontrol Bureau11:45 am Interview: In a move to curb black money, government cancelled the legal tender character of Rs 500 and Rs 1000 notes . Banks have been working aggressively ever since to help people in this crisis of currency ban. In conversation with CNBC-TV18, Usha Ananthasubramanian, MD & CEO of Punjab National Bank ( PNB ), said 200 branches of PNB have been working in double shifts. She said demonetisation has a positive fallout for banks. There is increase in current and savings account ratio (CASA) and deposits of about Rs 42,000 crore have been added to the accounts. There is also increase in new bank accounts. She further said there will be huge inflows towards the end of December. There have been good inflows in loan accounts of about Rs 5000 crore.11:30 am FII view: Speaking to CNBC-TV18 Kenneth Andrade, Founder & CIO of Old Bridge Capital Management said that the double whammy of Donald Trump presidency and demonetisaiton drive are event-driven outcomes. “There won’t be any surprises from Corporate India or government announcements in the next six months to one year,” he said, adding that one has to look at it on a quarter-to-quarter basis. India is a USD 2 trillion economy and cash outflows will constitbute about 2 percent of the GDP, and it could lead to a significant shock towards the financials year, he warned. For the lost momentum to come back both in terms of GDP growth and corporate earnings, it will take another 12-18 months, he maintained.Don't miss: Buy, sell, hold: 6 stocks that you may trade today

The market continues downtrend with Sensex up 10.10 points at 26237.0. The Nifty is up 5.10 points at 8085.05. About 1067 shares have advanced, 1088 shares declined, and 98 shares are unchanged.

NTPC, Sun Pharma, ONGC, Bharti Airtel and M&M are top gainers while GAIL, HUL, Tata Motors, ITC and TCS are losers in the Sensex.

Emerging markets are yet to digest Donald Trump's victory and strengthening of US dollar on the back of an uptick in US bond yields pose as a major headwind for them, says Jonathan Schiessl of Ashburton Investments.

Speaking to CNBC-TV18 Schiessl listed his views on the outcome of the US Presidential election and the impact of demonetisation on the Indian market.

On demonetisation he said that it fits in with Prime minister Narendra Modi's medium term reform plans and it can impact growth for the next 2-3 quarters however, it does put some of the earnings estimates at risk.