Stock Market

Sensex, Nifty rangebound; Sun Pharma, Wipro, Bharti drag 1%


Chillicious Team

1:30 pm Exclusive: 

Contrary to news reports, Coal India has not stopped production at any mine even though production has been cut back in the wake of low offtake, Coal Secretary Anil Swarup today confirmed to CNBC-TV18. In an exclusive interview, Swarup said the state-run mining monopoly is gradually increasing its production and added that he expects it to grow dispatch by 9-9.5 percent interview in FY16. He added that weak demand is likely to pick pick up in another three to four months.

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The market is still flat, consolidtaing after a super rally in last two days. The Sensex is up 31.30 points or 0.1 percent at 24638.29, and the Nifty is up 3.10 points at 7478.70. About 1461 shares have advanced, 871 shares declined, and 130 shares are unchanged.

BHEL, ONGC, Tata Motors, Cipla and Dr Reddy’s labs are top gainers while Sun Pharma, Wipro, Maruti, NTPC and Bharti are major losers in the Sensex.

Meanwhile, valuation of Indian equities have corrected and settled a little below 10-year mean levels of 15 times forward earnings — something that makes stocks reasonable, if not cheap, says Bharat Iyer, Head of Equity Research, JPMorgan India.

In an interview with CNBC-TV18, Iyer said earnings had likely bottomed out and should perk up from the fourth quarter earnings.

“Earnings could grow 12-14 percent in FY17 and we won’t be surprised to see rise by a similar amount,” he said.

Iyer’s recommended investment approach at this point is to be selectively overweight high quality financials, manufacturing sectors that cater to the government’s investment drive (highways, railways, power transmission, defence etc) as well as IT services and healthcare.