Stock Market

Sensex, Nifty under pressure; Maruti, Tata Steel, BHEL gain


Chillicious Team

12:45 pm Europe opens:

European markets opened modestly higher as investors digest the prospect of a June US interest rate hike and key risk events this week including a European Central Bank meeting.

The pan-European STOXX 600 was up around 0.2 percent.

Markets have been on edge since US policymakers started calling for a rate hike in June, ahead of market expectations. Federal Reserve Chair Janet Yellen said last week that a rate hike could be appropriate in the coming months.

12:25 pm Market Expert: With events such as a Fed rate hike and the Reserve Bank monetary policy lined up in June, shares could remain choppy in the near term, says Vibhav Kapoor of IL&FS.

But the medium term outlook remains strong even as two risks, a weak monsoon and Brexit, could upset the applecart.

In an interview with CNBC-TV18, Kapoor said that even as valuations from a short-term perspective may look expensive, investors should buy shares with a 18-24 month view.

IL&FS year-end target for the Nifty is at 8,700-9,100, which may go up to 8,800-9,400, he said.

Also read – Chetan Ahya: Two India growth engines firing, two more to go

12:00 pm Market Check

Equity benchmarks remained under pressure in noon trade with the Sensex declining 79.17 points to 26646.43 and the Nifty falling 17.90 points to 8160.60, led by profit booking.

The broader markets also continued to be weak as about two shares declined for every share rising on Bombay Stock Exchange.

Tata Motors held its top position in the buying list, up 8 percent after stellar performance in Q4. Credit Suisse remained bullish on the stock and assigned outperform rating with increased target price of Rs 530 (from Rs 470 earlier).

Maruti Suzuki, Tata Steel, NTPC and BHEL gained more than 1 percent while Infosys, TCS, Bharti Airtel and GAIL fell 1-2 percent.

Sun Pharma plunged nearly 6 percent on lower-than-expected earnings in Q4.