9:41 am Market outlook: After a sharp 15 percent rally in three months and hitting a 9000 level again, Motilal Oswal believes the markets have largely shrugged the impact of demonetisation. The macro backdrop remains conducive – inflation under control, twin deficits within tolerance limits, government sticking to the fiscal consolidation path, and stable currency among others, it feels.
The brokerage house says GST is on track for implementation from July 01, 2017. The BJP’s strong showing in the recent UP elections (won 4/5th majority) should provide tailwinds for further reforms. The political calendar is light, as the next major elections are due only in January 2018 (Gujarat). Earnings recovery is the only missing link, according to Motilal Oswal.
9:29 am PVR performance: Multiplex operator PVR is looking at around 90 percent jump in revenue to around Rs 4,000 crore in four to five years driven by expansion across the country.
The company has set a target of 1,000 screens in next four to five years with presence in 100 cities by then. It has 570 screens in around 50 cities at present.
“Once we get to 1,000 screens, our revenue would be around Rs 3,500 crore to Rs 4,500 crore,” PVR Chief Financial Officer Nitin Sood told PTI.
With the increase in the number of screens, he said in the next three years “people watching movies at our theatres will rise to 100 million from 75 million today”.
Also read – Buy, Sell, Hold: These 3 stocks are on analysts’ radar. Do you have them in portfolio?
9:15 am Market Check: Picking up from where it previously left, the market opened on a higher note, tracking global cues and steady domestic developments around GST as well.
The 30-share BSE Sensex was up 71.07 points at 29,480.59 and the 50-share NSE Nifty rose 22.80 points to 9,123.60. About 751 shares advanced against 204 declining shares on the BSE.
Bharti Infratel, Tata Power, Axis Bank, Bharti Airtel, Tata Steel, L&T and SBI were early gainers while Wipro, Adani Ports, Reliance Industries, GAIL, Tata Motors and BPCL were losers.
The Indian rupee gained past USD 65 against the US dollar for the first time since October 28, 2015. It closed at 65.04 to the dollar in previous session.
NS Venkatesh of Lakshmi Vilas Bank says the rupee is expected to take cues from the equity market and the FPI flows. There could be month and quarter-end demand from the importers which could be balanced by the FPI flows, he feels.
He expects the rupee to trade in a range of 64.90-65.35/dollar today.
The dollar pulled away from 4 month lows against currency basket as solid data backed expectations for more US Interest rate hikes this year, sterling was knocked by concern about Britain’s impending exit from the European Union.
Asia markets were mostly higher, after US equities rose higher on the back of a strong consumer confidence survey with markets awaiting the formal move by the UK to start an historic split with the European Union.