Market Live: Sensex, Nifty open moderately higher ahead of RBI policy outcome
Wed Jun 07 2017
Ramesh Sridharan (877 articles)

Market Live: Sensex, Nifty open moderately higher ahead of RBI policy outcome


10.01 am Market Check: Equity benchmarks extended gains in morning trade, with the Nifty trading above 9650 level ahead of outcome of monetary policy committee meeting due later today.The 30-share BSE Sensex was up 109.21 points at 31,299.77 and the 50-share NSE Nifty rose 27 points to 9664.15.

Majority of experts expect the RBI to maintain status quo. RBI’s commentary would be closely watched.

According to LKP, the central bank is likely to hold key rates even as the government is making a case for a lower interest regime citing low inflation.

The broader markets outperformed benchmarks, with the BSE Midcap and Smallcap indices rising over half a percent. About two shares advanced for every share falling on the BSE.

Also read – Buy, Sell, Hold: 9 stocks that are analysts are tracking today

9:42 am Market Outlook: Dhirendra Tiwari of Antique Stock Broking said smooth implementation of GST will be a key trigger.

While inventory adjustments could lead to some near-term volatility in earnings, market will look through such transitory phenomena and focus on the benefits of GST, he feels.

FY18 EPS estimates for the Nifty are at Rs 505; FY19 at Rs 606, implying a 18 percent CAGR earnings growth between FY17-19, he said.

Tiwari said the brokerage house has assigned a year-end target of 10,200 for the Nifty.

9:30 am Buzzing: GMR Infrastructure shares rallied nearly 4 percent in morning trade as its subsidiary won a airport in Greece, a major International tourist destination.

“GMR Airports, a subsidiary of GMR Infrastructure, has been selected to develop, operate and manage the new international Airport of Heraklion at Crete in partnership with Greek infrastructure major TERNA S A (100 percent subsidiary of GEK TERNA Group),” the infrastructure company said in its filing.

GMR Airports will be the designated Airport Operator in the consortium for this project, it added.

The company said the concession period for the Greenfield project would be 35 years including Phase 1 construction of 5 years.

9:15 am Market Check: Equity benchmarks opened moderately higher amid consolidation on Wednesday as investors awaited outcome of two-day Monetary Policy Committee due later today.

The 30-share BSE Sensex was up 47 points at 31,237.56 and the 50-share NSE Nifty gained 20.25 pointsa at 9,657.

GAIL, Bharti Airtel, ICICI Bank, M&M, Hero Motocorp, Vedanta and Bharti Infratel were early gainers while Dr Reddy’s Labs, Wipro, TCS, Cipla, Tata Motors, BPCL and Tata Power were under pressure.

The Indian rupee extended losses on Wendesday. It opened at 64.49 against the US dollar, down 7 paise compared with Tuesday’s closing level of 64.42 a dollar.

Pramit Brahmbhatt of Veracity said in the absence of any directional clarity, the spot USD-INR pair will trade in a tight range of 64.20 to 64.50 today.
Asia was mixed as markets cautiously awaited the UK election, a European Central bank review and former FBI Director James Comey’s testimony to the Senate stateside.

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

Discussion

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.