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Last Updated : Nov 22, 2016 10:50 AM IST | Source: Moneycontrol.com

Sensex, Nifty, Midcap off day's high; L&T slips ahead of Q2 nos

Equity benchmarks as well as broader markets erased more than half of early gains as traders seem to be using 'sell on rally' strategy due to uncertainty after demonetisation and fears of likely Fed rate hike in December policy meet.


Moneycontrol Bureau

10:42 am Interview:
Eric Vas, President of Motorcycle Business at Bajaj Auto, said that post demonetisation there has been a significant decline in the sales of 2-wheelers. It was 50 percent in rural India and 25 percent in urban areas.

More importantly, decline in enquiries was down 80 percent across the country, he said. However, in the last four days, we have seen a revival in enquiries, and they have gone up by 30 percent, he added.


Vas says it will be difficult to predict what will happen in the long-term, but the increase in enquires does indicate some liquidity is coming back into the market, he said. He stressed how most customers who buy two-wheelers do cash downpayments. He sees a decline of 25 percent this November in sales on a year-on-year basis. However, this currency ban won’t affect its launches, he said.

10:22 am FII view:
Eswar Prasad, Professor of Economics at Cornell University, said Narendra Modi hasn’t solved the problem yet of black money. But he has created a momentum through his demonetisation drive.

The key question is whether he will follow through with it, he said.

Another major pain area Prasad highlighted as a result of the demonetisation move were technical problems that the common man faces. Resolving them, going forward, will be key, he said. 

The key issue from his point of view is what this cleanup drive does on a broader reform effort. "If it turns out to be a building block to other broader economic reforms, it would push India in the right direction," he said.

10:15 am Expiry week: The NSE Nifty is expected to be volatile during the week as its futures and options contracts for the current month will expire on Thursday and investors &  traders will roll over their positions to December.

The index is expected to close at around 8000 level on expiry day as experts believe the market look oversold now after losing more  than 7 percent in last four weeks. Current fall indicated that the market may have priced in the impact of demonetisation.

Also read - Currency ban to hurt auto, financials; bullish on FMCG: Jefferies

10:00 am Market Check


Equity benchmarks as well as broader markets erased more than half of early gains as traders seem to be using 'sell on rally' strategy due to uncertainty after demonetisation and fears of likely Fed rate hike in December policy meet.

Close

In opening, the Sensex surged more than 200 points after falling for six consecutive sessions but could not sustain all gains for long. The index was up 93.02 points at 25858.16.


The NSE Nifty also reclaimed 8000 level in early trade but failed to hold the same. It was up 32 points at 7961.10 at 10 am.


The market breadth was marginally positive as about 1066 shares advanced against 838 declining shares on the BSE.


Engineering and construction major Larsen & Toubro (L&T) fell half a percent ahead of quarterly earnings. A CNBC-TV18 poll expects profit to fall 11 percent and revenue to rise 8 percent year-on-year.



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First Published on Nov 22, 2016 10:00 am
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