Benchmark indices erased some gains in afternoon trade, weighed by Reliance Industries.
12:59 pm Market Update: Benchmark indices erased some gains in afternoon trade, weighed by Reliance Industries.
The 30-share BSE Sensex was up 59.19 points at 27294.85 and the 50-share NSE Nifty rose 26.60 points to 8424.60. About 1523 shares advanced against 1013 declining shares on the BSE.
12:46 pm Rate cut possible?: The Reserve Bank of India is expected to go in for a 25 bps rate cut at its next monetary policy meet on February 8 -- as also in April -- says a Bank of America Merrill Lynch (BofA-ML) report.
According to the global financial services major, further easing is likely as demonetisation is hurting growth while inflationary pressure is benign and the government is expected to target a conservative fiscal deficit of 3.5 per cent of GDP.
"We grow more confident of our call of a 25 bps RBI rate cut on February 8 (and April) after release of latest CPI/WPI/ IIP data," BofA-ML said in a research note.
Incoming data show that demonetisation is impeding growth, BofA-ML said, adding that "old series GDP growth is already languishing at 4-4.5 per cent".
12:36 pm Nomura on India growth story: India's growth numbers are likely to slide in the next two quarters, but a sharp rebound is expected in the second half of 2017 as the demonetisation impact will be transitory and not long lasting, says a Nomura report.
The Japanese financial services major has lowered its January-March 2017 GDP forecast to 5.7 percent and that of April-June to 6.8 percent, from 7 percent.
For 2016-17, Nomura expects GDP growth of 6.5 percent as against 7.6 percent in 2015-16, lower than the official advance estimate of 7.1 percent. For 2017-18, it expects the figure to be at 7.4 percent.
"While we expect a sharp slowdown in the next two quarters, we also expect a V-shaped recovery in the second half of 2017," it said in a research note.
12:20 pm Buzzing: Indiabulls Real Estate shares gained nearly 3 percent intraday on acquisition of FIM's entire stake in joint venture that received refund from Delhi Development Authority.
"Pursuant to the judgment passed by the Honourable Supreme Court of India, a refund of approximately Rs 701 crore, net of TDS, (being the auction price along with interest) has been received from the Delhi Development Authority (DDA) by Kenneth Builders & Developers," the company said in its filing.
The refund received by Kenneth was in relation to land situated at Village Tehkhand, New Delhi, which was earlier allotted by DDA for development of residential project.
Kenneth Builders & Developers is a 100 percent subsidiary of Indiabulls Infrastructure (IIPL). Indiabulls Infrastructure is a joint venture company set up by Indiabulls Real Estate with FIM (managed by US private equity fund Farallon Capital Management LLC and its affiliates).
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12:00 pm Market Check
Benchmark indices remained higher in noon trade with the Sensex rising more than 100 points while the broader markets outperformed.
The 30-share BSE Sensex was up 129.91 points at 27365.57 and the 50-share NSE Nifty gained 46.95 points at 8444.95. The BSE Midcap and Smallcap indices climbed over 0.6 percent each as about two shares advanced for every share declining on the exchange.
Sanjay Mookim of Bank of America Merrill Lynch says despite near-term GST disruption, Mookim expects the Sensex to deliver robust profit growth and to achieve a 9 percent total return from here on.
Tata Elxsi, United Spirits, HDFC, Force Motors, Tata Steel, PVR and Sun Pharma were most active shares on bourses.
Oil prices rose with a weaker dollar underpinning the market, although gains were limted by expectations that US producers would boost output. US West Texas Intermediate (WTI) crude oil futures were trading up 0.36 percent at USD 52.67 per barrel and Brent crude futures, the international benchmark for oil prices, were up 0.36 percent at USD 55.68 a barrel.
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