Market off day’s high, Sensex still holds 29000; Idea down 3%
Thu Mar 02 2017
Ramesh Sridharan (877 articles)

Market off day’s high, Sensex still holds 29000; Idea down 3%

12:50 pm IndusInd-Bharat Fin talks called off?Sources have informed CNBC-TV18 that IndusInd Bank and Bharat Financial deal talks have been called off due to concerns on valuation. Shares of Bharat Financial fell over 7 percent intraday on Thursday, while IndusInd Bank lost over half a percent intraday.

12:40 pm Madhu Kela’s investing tips:
Mutual funds are the best vehicles for new investors looking to put money in the stock market, says Madhu Kela, Chief Investment Strategist, Reliance Capital.

“If you feel you have missed the rally and have seen someone make money, do not be nervous because this is only a trailer, the whole picture is yet to come. So it is never a wrong time or bad time – invest methodically, systematically – consult a proper person who has been advising on wealth management – then invest money- have faith in India, have faith in market,’’ adding that the money invested should be for a longer timeframe – one will be surprised at the good returns. When you invest in a mutual fund, you hand over the job of investing to a professional which is better than investing based on someone’s tips, said Kela in an interview to CNBC-TV18.

12:20 pm Management Speak: The demonetisation impact has not fully subsided and two-wheeler companies might continue to feel the pain for a few more months, according to S Ravikumar, President-Business Development at Bajaj Auto.

The 16 percent jump in exports is largely due to a base effect, he said, pointing out it is good that the numbers have held up around 1.1 lakh units for the last three months.

The company has started shipments to Malaysia and the new market expansion might gradually help in adding to export numbers, he said.

Also Read: Buy, sell, hold: 8 stocks that you can focus today

The market gave up its early morning gains on likely profit booking, with the Nifty hovering above 8950.

The Sensex was up 83.22 points at 29067.71, while the Nifty was up 23.10 points at 8968.90. The market breadth indicated selling pressure as 1,258 shares advanced, 1,306 shares declined, while 144 shares remained unchanged.

Auto stocks topped the gainers list on both the indices, while Sun Pharma, NTPC and Idea Cellular were a drag.

Pharma stocks were in focus as Wockhardt plunged on the back of a warning letter issued by the US FDA to its subsidiary in the US. Credit Suisse is wary about high product concentration at Dr Reddy ’s Labs playing out, which could impact its earnings per share (EPS) for FY18 and market share. It has maintained an underperform rating on the stock.

February sales of major auto firms slowed, largely due to demonetisation woes. Passenger vehicles overall posted steady numbers, but two-wheeler sales lagged as the rural market was still recovering from cash crunch issues. Analysts cited demand issues for the sector in general, but feel it may improve as cash situation gets better.

Ramesh Sridharan

Ramesh Sridharan

Ramesh Sridharan is our Stock Market Correspondent covering events and daily movements of stock markets in Asia. He is based in Mumbai