India : Nifty opens below 8800, Sensex falls over 100 pts; TCS, RIL up
The market has opened low dragged by profit booking and weak global cues. The Sensex is down 148.90 points or 0.5 percent at 28519.32 and the Nifty is down 46.45 points or 0.5 percent at 8785.10. About 435 shares have advanced, 444 shares declined, and 69 shares are unchanged.
TCS, Reliance, Dr Reddy’s Labs, Sun Pharma and Lupin are top gainers while Tata Motors, ICICI Bank, ITC, Adani Ports and HDFC are losers in the Sensex.
Rear axle shafts manufacturer, GNA Axles will make its stock market debut today. The issue price is fixed at Rs 207 per share, the higher end of price band.
The Indian rupee opened lower by 10 paise at 66.75 per dollar on Monday versus 66.65 Friday.
Pramit Brahmbhatt of Veracity said, “The rupee recovered from 67/dollar levels on global cues and performance of Indian equity market. It is expected to trade in range of 66.20-66.80/dollar today.” The dollar index edged higher on Friday, reversing earlier selling, after Boston Federal Reserve president Eric Rosengren said he believed US short-term interest rates should be raised now and warned a decline in the jobless rate below sustainable levels could derail economic recovery.
Broking firm Credit Suisse has retained its ‘underweight’ rating on India, terming it as one of the four most expensive markets in Asia. The others are Indonesia, Malaysia and Philippines.
Credit Suisse has compared price to book value with return on equities to arrive at the conclusion.
“Several investors have suggested that using 2017 estimated price earnings growth (PEG) ratios shows India to be the second and Indonesia the third most undervalued market,” says the Credit Suisse note to clients.
Abhay Laijawala of Deutsche Bank says with record Kharif output likely to give significant boost to rural consumption sentiment and other factors such as 7th Central Pay Commission, lower interest rates and easing liquidity also supporting aggregate demand in the economy, it will likely result in consensus upgrades to earnings of consumer and rural interfacing sectors and stocks.
These include two-wheelers, tractors, white goods, home improvement, commercial vehicles, housing finance and retail finance, he adds.
He feels key stock beneficiaries should include Hero Motocorp, M&M, GSK Consumer, Nestle, Shriram Transport and Whirlpool India.
Asian shares began weak after losses on Wall Street, as investors’ attention turned from central banks to American politics ahead of the first US presidential debate. MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.1 percent in early trade, while Japan’s Nikkei stock index slumped 0.5 percent against the headwinds of a stronger currency
Wall Street logged weekly gains but ended with solid losses on Friday. The S&P 500 still managed to record its best weekly performance in more than two months after the US Federal Reserve held interest rates steady on Wednesday.
Crude prices rebounded after Algeria’s energy minister said the day before that all options were possible for an oil output cut or freeze at this week’s informal meeting of OPEC producers.
That came after prices tumbled 4 percent on Friday amid signs Saudi Arabia and Iran were making little progress in achieving preliminary agreement to freeze production.Members of the Organization of the Petroleum Exporting Countries will meet on the sidelines of the International Energy Forum in Algeria from September 26-28, where they will discuss a possible output-limiting deal.
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