Stock Market

Nifty opens above 8700, Sensex flat; Adani Ports, ONGC gain


Chillicious Bureau

9:30 am FII view:

Gautam Chhaochharia of UBS says global macro strategy team believes that a low risk-free yields regime is likely to persist. That suggests hunt for yield and hopes of growth recovery are both playing a role in driving Indian markets, he feels.

According to him, H2FY17 growth recovery hopes will likely be dampened though as 7th Pay Commission and monsoon impact is over-estimated by street.

He says while earnings recovery will continue mildly in FY17-18, policy stance change is needed to meet street’s optimistic estimates.

“Our base case is no policy stance change till early 2018 and upside scenario is one of boost by mid-2017. This gives us base case scenario of 8,000 and upside scenario of 8,800 for Nifty for 2016-end,” Chhaochharia says.

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The market has made a flat opening with the Sensex up 49.91 points or 0.2 percent at 28273.61. The Nifty is up 6.25 points at 8712.65. About 180 shares have advanced, 58 shares declined, and 15 shares are unchanged.

Adani Ports, ONGC, Bajaj Auto, Hero MotoCorp and GAIL are top gainers in the Sensex. Among losers are HDFC, Lupin, Asian Paints, Sun Pharma and Infosys.

The Indian rupee opened higher by 4 paise at 66.44 per dollar on Wednesday versus previous close of 66.48.

Pramit Brahmbhatt of Veracity said, “The rupee will continue to trade with a positive bias on the back of an overall weak outlook for dollar and in anticipation of rebound in the domestic equity market.”

Among global peers, Asian stocks edged up early following an overnight rise for US stocks, while reduced hopes that a meeting of major producers would reduce a oversupply weighed heavily on crude oil prices.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.1 percent. Australian stocks were up 0.5 percent while South Korea’s Kospi was flat. Japan’s Nikkei was last down 1.1 percent.

Overnight, the Dow rose 0.7 percent and Nasdaq added 0.9 percent. A perceived win by Democrat Hillary Clinton over Republican Donald Trump at the first presidential debate gave broader support to equities, although sliding oil prices were a drag on the energy sector.

Oil fell about 3 percent on Tuesday after Saudi Arabia and Iran dashed market expectations that the two major OPEC producers would find a compromise this week at a meeting in Algiers to help ease a global glut of crude.

Gold fell as the dollar and stocks gained ground on the view that US Presidential candidate Hillary Clinton got the better of rival Donald Trump in their first debate.