Sensex, Nifty firm as investors await RBI policy; TCS, ITC drag

Moneycontrol Bureau11:45 am Fund raising: Private sector lender ICICI Bank said it proposes to raise funds through bonds in the next three months to fund business expansion.

It did not specify the amount to be raised through the bonds.

In a regulatory filing, it said the bank proposes "fund raising in single or multiple tranches in any currency through public or private placement by way of issuances of debt instruments for remaining period of 2016-17".

The board of the bank will meet on December 9 to take a call on fund raising, it added.

11:30 am Market outlook: Indian stock and long bond markets are currently trading at similar yields -- around 15 times price-to-earnings for stocks, translating into 6 percent earnings yield, which is roughly the same yield on the 10-year, says Ridham Desai Head of India Equity Research & India Equity Strategist at Morgan Stanley. In an interview with CNBC-TV18, Desai said that given the current state of valuations, if one were bullish on bonds and bearish on equities, "now is the time to make the switch." Although it is tough to predict the precise impact of demonetisation alone, in combination with other measures like the GST, it will aid in formalising the economy over the next 4-5 years and eventually have a positive fiscal impact, he says. He feels that while corporate earnings momentum has been set back by couple of quarters due to demonetisation, stock prices have turned more attractive than they were 2 months ago thanks to the 7-8 percent correction seen.Don't miss: Buy, sell, hold: 9 stocks that to watch out today

The market is still steady with the Nifty above 8150 comfortably. The 50-share index is up 23.25 points or 0.3 percent at 8166.40 and the Sensex is up 62.87 points or 0.2 percent at 26455.63. About 1343 shares have advanced, 760 shares declined, and 118 shares are unchanged.

Adani Ports, HDFC, Hero MotoCorp, NTPC and Bharti are top gainers while Sun Pharma, TCS, ITC, Lupin and Dr Reddy's Labs are losers in the Sensex.

Meanwhile, a Reuters Poll showed the Sensex is expected to rise next year but it may not scale record highs predicted a few months back mainly because Prime Minister Narendra Modi's shock currency ban is seen knocking economic growth in the next few quarters.

Indian shares fell over 6 percent a day after the November 8 announcement by Modi outlawing high-value bank notes, coinciding with a shakeout in global financial markets after Donald Trump's victory in the US presidential election.