Sensex gains after opening flat, Nifty eyes 8950; RIL up 6%
Mon Feb 27 2017
Rajesh Sharma (2003 articles)

Sensex gains after opening flat, Nifty eyes 8950; RIL up 6%

10:55 AM Market check: The market was off day’s highs after the surge in early morning trade. The Sensex was up 11.90 points at 28904.87, and the Nifty was down 10.70 points at 8928.80. The market breadth was narrow with 1,200 shares advancing, 1,060 shares declining. About 166 shares were unchanged.

10:45 AM ONGC to take over HPCL? State-run Oil and Natural Gas Corp (ONGC) will take control of Hindustan Petroleum Corp as part of the government’s plan to create an integrated public sector oil entity, the Economic Times daily reported on Monday citing top government officials.

India plans to create a giant oil company by combining state-owned firms, finance minister Arun Jaitley said in the budget speech earlier this month as the world’s third largest oil consumer looks to better compete with global majors in acquiring foreign assets.

10:30 AM Thumbs up to housing subsidies: SEBI’s revised investment limits in housing finance companies (HFCs) for mutual funds will help in increasing avenue of funding available for HFCs, according to Keki Mistry, HDFC’s Vice-chairman and Chief Executive Officer.

Last week, market regulator Securities and Exchanges Board of India (SEBI) had increased the limits to which mutual funds can take positions in housing finance companies (HFCs). Mistry said the current total assets under management for debt funds stands at Rs 12 lakh crore and owing to the revised SEBI norms, an additional funding of Rs 50,000 crore to Rs 60,000 crore can be expected for HFCs.

Pointing out to “very good” macro data, Mistry said Indian economy is under recovery. He, however, stressed the need for a pickup in private investment cycle. India is still 2-3 quarters away from a pick-up in private investment cycle, he said.

Also Read: Buy, sell, hold: 6 stocks analysts are watching out

10:20 AM Jefferies on Axis Bank: Broking firm Jefferies feels that Axis Bank is a much better franchise than Kotak Mahindra Bank and there will most likely be counter bids and the pricing could become a winner’s curse. Market chatter about Axis Bank being merged with Kotak Mahindra Bank refuses to die down, despite Axis Bank denying the possibility. The Axis Bank stock has been steadily rising over the last week.

“Whether Uday Kotak is currently exploring or KMB board has approached RBI, the case ultimately rests with Axis’ board to deliberate,” says the Jefferies note. The broking firm feels it will not be an easy decision for the board, given the size of the two banks and the significant overlaps in both businesses.

Also Read: Buy, sell, hold: 6 stocks analysts are watching out

After opening flat, the market gained some strength amid consolidation on the back of strong movements in Reliance Industries. The Nifty is now inching towards 8950 level.

The 30-share Sensex was up 59.74 points at 28952.71, while the Nifty was up 9.00 points at 8948.50. The market breadth was slightly narrow, with 1,150 shares have advanced, 781 shares having declined. Meanwhile, 122 shares remained unchanged.

Reliance was an index-mover in early morning trade, with the stock soaring 6 percent intraday on Monday. The company touched a market capitalisation of Rs 4 lakh crore. The scrip also saw a big upgrade from Morgan Stanley. It increased the target price at Rs 1,506 from Rs 1,280 on the back of better than expected earnings.

Indian Oil Corporation saw a fall of over 2 percent intraday after Odisha government withdrew sales tax sops given to the firm at Paradip refinery. This has made the company rethink its Rs 52,000-crore investment in the refinery.


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.