Subscribe to Moneycontrol Pro and get 365 bonus InterMiles! Use Code: INTERMILES
Last Updated : Oct 27, 2016 10:00 AM IST | Source: Moneycontrol.com

Sensex opens flat, Nifty below 8600; ITC up 1%, Tata stocks sink

ITC, Asian Paints, Dr Reddy's Labs, Sun Pharma and Hero MotoCorp are gainers while Tata Motors, Tata Steel, ICICI Bank, TCS and Bharti are losers in the Sensex.

Moneycontrol Bureau

9:55 am Result poll:
India's biggest car manufacturer Maruti Suzuki is expected to report stellar performance in July-September quarter with profit rising a whopping 52 percent year-on-year to Rs 1,868 crore but margin may decline, according to analysts polled by CNBC-TV18. Revenue during the quarter is seen rising 30 percent year-on-year to Rs 18,222 crore as the mix shifted towards high priced vehicles like Vitara Brezza and Baleno. Compact car segment growth was 9 percent due to success of new Baleno and Celerio. Utility vehicle segment also saw big surge due to success of Vitara Brezza and Ertiga. Maruti sold 4.2 lakh vehicles in Q2, registering a 19 percent growth compared with 3.53 lakh units sold in year-ago period with exports and domestic volumes rising 18 percent.

9:45 am Tata in soup?
Markets regulator Sebi has begun looking into the high profile Tata-Mistry case for any possible breach of corporate governance norms and listing regulations at various listed companies of the over USD 100 billion conglomerate. Besides, stock exchanges, sought clarification from many of the group's listed companies on the purported disclosure by ousted Chairman Cyrus Mistry about Rs 1.18 lakh crore possible writedown at the group firms. "We (Sebi) are taking note of each and every development and will act immediately on any hint of possible violation of corporate governance and listing norms or any other regulation under our jurisdiction," a senior official said.

9:30 am FII view:
Willem Buiter of Citi says he continues to expect sluggish global growth in 2016 and 2017, with relatively steady growth in advanced economies and a pickup in emerging markets (EMs) growth.

He feels inflation in advanced economies is off its recent lows and will likely rise significantly in the coming 6-12 months.

The rise in inflation in advanced economies is mainly due to base effects, the rebound in oil prices and diminishing external drags, he says.


But although there are some upside risks to commodity prices over the next year, global disinflationary pressures remain quite strong, according to Buiter.

Don't miss:  Buy, sell, hold: Investing tips on 8 largecap stocks post Q2 nos

The market has opened in red dragged by September Futures and Options (F&O) expiry jitters and Tata group stocks weakness. The Sensex is down 70.51 points or 0.2 percent at 27766.00, and the Nifty is down 27.50 points or 0.3 percent at 8587.75.
About 449 shares have advanced, 492 shares declined, and 59 shares are unchanged.

ITC, Asian Paints, Dr Reddy's Labs, Sun Pharma and Hero MotoCorp are gainers while Tata Motors, Tata Steel, ICICI Bank, TCS and Bharti are losers in the Sensex.

The Indian rupee opened lower by 9 paise at 66.92 per dollar versus previous close 66.83.

Mohan Shenoi of Kotak Mahindra Bank said, "With upcoming US elections, Fed rate hike on November 2 looks unlikely. However, dollar continues to strengthen on the back of expectations of Fed rate hike in December."

The US dollar fell against a basket of major currencies after touching a nearly nine-month high on Tuesday as the greenback looked vulnerable to weakness on uncertainty surrounding Federal Reserve monetary policy and the US election.

Meanwhile, the euro rose from a seven-month low on signs that the european economy may be improving enough to reduce pressure on the ECB to further ease monetary policy.

Asian shares edged down after disappointing earnings from technology giant Apple dragged on Wall Street, while the dollar remained shy of this week's nearly nine-month highs.
The Dow Jones industrial average rose 30.06 points, or 0.17 percent, to 18,199.33, the S&P 500 lost 3.73 points, or 0.17 percent, to 2,139.43 and the Nasdaq Composite dropped 33.13 points, or 0.63 percent, to 5,250.27.

Disappointing results and forecasts from some other major US companies weighed on European and Asian stocks.

Gold prices fell as investor appetite for riskier assets recovered slightly, denting demand for safe-haven bullion.

Oil prices bounced off session lows for a time after the U.S. government reported a surprise drawdown in crude inventories, but oil ended lower on growing doubts that OPEC would cut production enough to drain a global oversupply.

First Published on Oct 27, 2016 09:15 am