Market Live: Sensex, Nifty open lower after Q4 GDP data; banks drag
Citi India has upped the Sensex target for FY18 to 32,200. Explaining this upgrade, he said that Q4 FY17 earnings have come in slightly ahead of estimates, so this change in target is more of a roll forward.
Low inflation, goods and services tax (GST) about to come in, strong domestic and foreign institutional investors (FII) flows are the positives which give people a medium-term comfort that India is one of the key markets to be in, he said.
9.50 am Market Check: Equity benchmarks continued to be volatile in morning trade as investors awaited May auto sales data due today.
The 30-share BSE Sensex was up 23.73 points at 31,169.53 and the 50-share NSE Nifty gained 5.40 points at 9,626.65.
The broader markets continued to outperform benchmarks for third consecutive session, with the BSE Midcap and Smallcap indices rising 0.5 percent and 0.8 percent, respectively. About two shares advanced for every share falling on the exchange.
Mahindra & Mahindra, Hero Motocorp and Bajaj Auto gained a percent each ahead of auto sales data. Tata Motors, Maruti Suzuki and Escorts were flat with a positive bias.
9:40 am Buzzing: Bharat Gears shares rallied nearly 5 percent in morning trade on board approval for term loan from KKR India Financial Services.
The India’s largest gear manufacturer informed exchanges that its finance committee of board of directors, on May 31, considered and approved the proposal to avail a term loan of Rs 110 crore from KKR India Financial Services Private Limited.
The company has taken a loan for the purpose(s) of repaying some of the existing term debts, working capital requirements and capital expenditure, among others, it added.
9:23 am Market Update: Equity benchmarks rebounded after initial losses but against drifted lower amid volatility. The market awaited fresh triggers to move on either direction.
9:20 am Market Outlook: The Nifty formed a strong technical setup and is on the verge to touch 9,700 levels in coming sessions. Since Nifty has given a double bottom breakout in the start of the year, it is observed that on every breakout Nifty has rallied nearly 150 points.
Traders need to be cautious, as the index is trading at all-time highs and need to change strategies. Rather than jumping on fresh breakouts one can better look for a dip.
Also read – Buy, Sell, Hold: Here are 6 stocks that are being tracked by analysts today
9:15 am Market Check: Equity benchmarks started off June month on negative note after fourth quarter GDP growth slowed to 6.1 percent and eight core sector growth slipped to 2.5 percent in April.
The 30-share BSE Sensex was down 69.90 points at 31,075.90 and the 50-share NSE Nifty fell 17.70 points to 9,603.55.
Infosys was the top loser, down 1.4 percent followed by HDFC Bank, HDFC, ICICI Bank, Asian Paints, ONGC and Reliance Industries.
Sun Pharma rebounded over a percent followed by ITC, M&M, Tata Motors, Hero Motocorp and L&T.
The Indian rupee opened at 64.48 to the dollar, up 3 basis points from its previous close of 64.51.
Mohan Shenoi of Kotak Mahindra Bank said selling of dollars by exporters and support by the Reserve Bank of India are likely to keep the rupee rangebound.
The USD-INR is expected to trade in the range of 64.35-64.70 to the dollar for the day, according to him.
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