 "Deutsche Bank cuts Sensex target to 28,000")
Benchmark indices continue to trade firm tracking firm global cues along with buying demand among FMCG and metal shares leading the gains. However, the upside is capped due to selling pressure seen among select IT stocks.
At 14:40 pm, the Sensex gained 168 points to trade at 25,928 and the Nifty rose47 points to trade at 7,853.
The broader markets are performing line with the benchmark indices- BSE Midcap and Smallcap indices are up 0.4-0.6%. Market breadth is firm with 1,365 shares advancing and 1,142 shares declining.
Meanwhile, foreign portfolio investors (FPIs) sold shares worth a net Rs 1,051.26 crore yesterday, as per provisional data released by the stock exchanges.
In the currency front, the rupee has advanced by 10 paise to 65.90 against the dollar today on sustained selling of the American currency by exporters and banks.
MOTILAL OSWAL MARKET OUTLOOK
The momentum indicator is gradually reversing the lower extreme suggesting that there could be a temporary pullback. A follow-up breakdown with a gap suggests the immediate resistance / trail stop level placed at 7,870. As the reward to risk is diminishing for a fresh short trade, it is recommend to hold on to existing shorts till Nifty shows signs of revival i.e. above 7,870.
Nifty futures holding on to 7,700 and covering shorts indicates neutralization of bearish bias. Heavy congestion in 8000 now on the higher side may pose a hurdle in case if the pullback has to continue.
MACRO-ECONOMIC DATA
Finance Minister Arun Jaitley said that, “notwithstanding "adverse global circumstances" and headwinds, Indian economy are still managing to keep ahead”. The government is ready to discuss all issues with the opposition to pass a key amendment in the winter session of parliament that would pave the way for a new nationwide goods and services tax (GST), Finance Minister added.
India’s merchandise exports fell for the eleventh consecutive month in October. Exports contracted 17.53 per cent to $21.35 billion in October, against $25.89 billion in October 2014, according to data released by the commerce ministry on Monday.
GLOBAL MARKETS
Asian stocks rose across the board on Tuesday following a surge on Wall Street overnight as investors clawed back losses that came on the back of last week's Paris attacks.
Meanwhile, expectations for a December rate hike by the Federal Reserve also kept the dollar on a bullish footing.
MSCI's broadest index of Asia-Pacific shares outside Japan rose 1.7%, bouncing from a 6-week low struck the previous day on risk aversion triggered by the assault on the French capital.
South Korea's Kospi was up 1.4%, Australian shares gained 1.8% and Shanghai stocks climbed 1.4%. Japan's Nikkei added 1.6%, brushing a 3-month peak.
SECTORS & STOCKS
BSE FMCG index has surged over 2% followed by counters like Metal, Healthcare and Auto, all gaining by 1% each. However, BSE IT and Consumer Durables indices are trading marginally lower.
The top gainers from the Sensex pack are ITC, Hindalco, GAIL, Vedanta and Tata Motors.
ITC Infotech and Ramco Systems have formed a strategic partnership, which will enablethe former to strengthen its aviation capablities and expand its expertise in the human capital management domain. ITC Infotech, a leading global IT services and solutions company, is a fully owned subsidiary of ITC. ITC has surged over 3%.
On the losing side, Infosys, Dr Reddy’sLabs, Axis Bank, Bajaj Auto and Bharti Airtel are down between 1-2%.
Infosys has dipped 2% at Rs 1,060, also its lowest level since September 8, 2015 on the Bombay Stock Exchange (BSE).
Reliance Inds has slipped marginally. Fitch Ratings has affirmed Reliance Industries' long term foreign currency and domestic currency issuer default rating at 'BBB-' and 'BBB', respectively with stable outlook.
SMART MOVERS
Shares of tea companies are in focus and trading higher by up to 18% on the BSE on expectation that tea prices are likely to surge amid likely drop in production.
Warren Tea, Rossell India, Williamson Magor & Company, Mcleod Russel India, Jay Shree Tea, Tata Global Beverages and Bombay Burmah Trading Corporation are up 4-18%.
Shares of Mumbai-based real estate developer D B Realty and drug maker Dishman Pharmaceuticals and Chemicals have tanked up to 20% on the BSE on back of heavy volumes.
Shares of sugar makers continue to surge with 11 stocks from the sector locked in upper circuit on the Bombay Stock Exchange (BSE).
Dwarikesh Sugar, Mawana Sugars, Kesar Enterprises, Sir Shadi Lal Enterprises, Empee Sugars, Thiru Aroon Sugars, Riga Sugar, Ugar Sugar Works, SBEC Sugar, Gayatri Sugars and KM Sugar Mills have frozen upper circuit between 2%-20% on the BSE.
Dharani Sugars & Chemicals, Shree Renuka Sugars, EID Parry and Bannari Amman Sugars are among others which rallied by more than 8% on the BSE.
