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Last Updated : Dec 23, 2016 10:15 AM IST | Source: Moneycontrol.com

Sensex, Nifty lower on weak global cues; ITC, HDFC decline

Equity benchmarks started off Friday's trade on a negative note amid consolidation and low volumes, weighed by weak global cues ahead of Christmas holiday.


Moneycontrol Bureau

9:45 am FII View:
Willem H Buiter, Global Chief Economist, Citi is of the belief that the demonetisation process in India will only have a minor impact on growth and will not alter the underlying India growth story.


Demonetisation could be just a small currency pimple on growth, he said. It should have been an act of surprise but only when new cash was ready.


Sharing his view on global growth and US economy, he said although global growth could be a bit stronger in 2017, there are risks to the downside. Meanwhile, emerging markets would perform slightly better than advanced economies in 2017, said Buiter.

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With regards to the US dollar, he said if fiscal stimulus as promised by Donald Trump goes through the Congress then it would push the dollar higher.


Moreover, he does not think US Federal Reserve will go through three hikes as proposed. More rates will be seen in 2018 than 2017, he said.

9:25 am BoAML on Sun Pharma:
Bank of America Merrill Lynch has lowered its target price on the stock to Rs 750 & lower assigned P/E multiple of 20x against 21x following cut in earnings estimates.


It has reduced its forecasts by 6-5 percent for FY18-19 in-line with estimates indicated earlier as it feels complete response letter to its subsidiary SPARC (Sun Pharma Advanced Research) from USFDA for Xelpros indicates likely delay in resolution for Halol plant that has been under import alert.


According to the brokerage house, complete resolution of Halol might now be delayed by another 6-9 months.


It has reiterated buy rating on the stock due to cheaper valuations, but prefers Lupin.

Also read - Buy, sell, hold: 4 stocks analysts recommend to watch out

9:15 am Market Check

Equity benchmarks started off Friday's trade on a negative note amid consolidation and low volumes, weighed by weak global cues ahead of Christmas holiday.

The 30-share BSE Sensex fell 30.86 points to 25948.74 and the 50-share NSE Nifty declined 8.35 points to 7970.75.

ITC, HDFC, Tata Motors, M&M, Adani Ports, L&T and Maruti Suzuki were under pressure while Asian Paints, Reliance Industries, Infosys, Sun Pharma and ICICI Bank gained.

The Indian rupee gained in the early trade today. It has opened higher by 6 paise at 67.93 per dollar versus 67.99 Thursday.

Bhaskar Panda of HDFC Bank says festive fervour is the theme right now across the world. The dollar Index has given up some of the recent gains and is trading below 103 levels. EM currencies are still under the cloud.

He expects the USD-INR to trade within the 67.80-68.10/dollar range.

According to Karvy currency report, weakness in the equity markets will continue to exert pressure on the Indian currency.


Asian shares were in the red today with little Christmas cheer expected in thin holiday trade after the Dow Jones index again fell short of the 20,000 mark.


US stocks fell on Thursday, weighed down by weakness in retailers, as investors stepped back from a recent rally fuelled by optimism that President-elect Donald Trump will invigorate economic growth.



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First Published on Dec 23, 2016 09:15 am
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