Sensex rises 100 pts; Reliance hits multi-year high, IT drags
Wed Feb 22 2017
Rajesh Sharma (2003 articles)

Sensex rises 100 pts; Reliance hits multi-year high, IT drags

10:56 am Market check:
The Sensex was up 121 points at 28883.38, while the Nifty held on to its 8900-mark and was up 35.25 points. The market breadth was better, with 1,234 shares having advanced, 1,041 shares having declined. Meanwhile, 150 shares remain unchanged.

10:35 am Market Expert:
The market continues to inch up relentlessly with support from domestic fund flows, but Saurabh Mukherjea of Ambit Capital is circumspect considering the visible underlying macro weakness.

The Budget was not particularly expansionary, fourth quarter earnings are expected to be weak, and macro indicators suggest a slugging economy with not much momentum in either consumer or capital expenditure, he says. “It is difficult to say why anyone would chase this market given the lack or macro or earnings momentum,” he adds.

Heavy flows often create disconnect with valuations, he says, adding, “Valuations in plenty of pockets don’t make sense any more”.

10:15 am Buzzing: Shares of ITD Cementation plunged 10 percent intraday Wednesday on the back of weak numbers declared by the company for the quarter ended December 2016 (Q3).

It has reported 56.8 percent decline in its consolidated Q3 net profit at Rs 13 crore against Rs 30.1 crore, in the same quarter last year.

Total income was down 31.3 percent at Rs 729.9 crore versus Rs 1,063.2 crore.

The company’s operating profit (EBITDA) fell 15.2 percent at Rs 55.6 crore, while EBITDA margin was up at 7.6 percent. It has incurred tax expense of Rs 12.6 crore versus Rs 3.2 crore.

EXCLUSIVE: After TCS, HCL Tech could eye share buyback

10:00 am Market Check: The market remained higher in morning, largely driven by Reliance Industries that hit nearly 8-year high after Reliance Jio offers. However, technology, FMCG and select banking & financials were under pressure.

The 30-share BSE Sensex was up 86.15 points at 28847.74 and the 50-share NSE Nifty gained 24.85 points at 8932.70. About 1112 shares advanced against 906 declining shares on the BSE.

Reliance Industries rallied more than 7 percent, hitting nearly 8-year high as investors cheered the announcements made by chairman Mukesh Ambani for customers of Jio. It was the biggest contributors to the Nifty.

Axis Bank also gained further, up 2.5 percent on hopes of merger with other leading private banks. Tata Motors rose 1 percent after a media report indicated that the company and Volkswagen are in talks for partnership that deal may have huge impact on India, emerging markets.

TCS and Infosys fell 1-1.5 percent as a media report suggested that JC penny will reduce outsourcing of software business to both companies.

Disclosure: Reliance Industries, the parent company of Reliance Jio, owns Network 18 that publishes

Rajesh Sharma

Rajesh Sharma

Rajesh Sharma is Correspondent for Stock Market of South East Asia based in Mumbai. He has been covering Asian markets for more than 5 years.


Rules of Discussion on Live Index

1. This forum is for discussion of financial markets. Please respect others view even if they are contrary to you.
2. Member's comments should lead to value addition in forum discussion.
3. If anyone is found making repetitive Explicit/Abusive/Racial comments, his account shall be banned and old posts will be deleted.