10:15 am FII View: Gautam Chhaochharia, Head of India Research at UBS Securities, said that the longer India story remains intact. Demonetization doesn’t impair the economic trajectory in the long term. He said he is estimating a 3-6 month disruption which may have been priced in by many stocks already.
It is difficult to assess the impact on GDP rate owing to cash ban. “It is difficult to take a linear view,” he said, adding that he believes the GDP for this fiscal year could be about 6 percent, but it will go up to 8 percent because of base effect.
Nifty earnings growth in FY17 will be 5 percent, and 14 percent for FY18, he said.
FIIs have been net sellers in the last two weeks on buzz that the US Fed will hike rates and make borrowings expensive. Till a week ago, markets were EM driven, he said, admitting that over the last week India has been under performing a bit.
10:00 am Market Check Equity benchmarks retained early gains with the Nifty holding 8150 level, supported by banking & financials, auto, infra, oil and metals stocks. However, healthcare stocks were under pressure.
The 30-share BSE Sensex was up 114.15 points at 26464.32 and the 50-share NSE Nifty rose 37 points to 8163.90. The broader markets continued to outperform benchmarks as the BSE Midcap index was up 0.9 percent and Smallcap gained 1 percent on strong breadth.
About 1476 shares advanced against 390 declining shares on the exchange.
HDFC, Maruti Suzuki, Coal India, Reliance Industries, GAIL and Mahindra & Mahindra were top gainers among Sensex 30 stocks, up 1-2 percent whereas Infosys, Infosys, Lupin, Axis Bank, HUL and Cipla declined.
Japanese markets slipped in a mostly lower Asian trading session, despite the release of government data hinting at a stabilization in domestic demand. The country’s seasonally adjusted unemployment rate was steady in October at 3 percent, the same level as August.
Give Missed Call at +91 830-630-830-8