Sensex, Nifty to open on a flat note

India Infoline News Service | Mumbai | January 02, 2017 08:44 IST

Asian indices opened in the green with most markets still in holiday mode. The retracement of the US$ saw currency gains for most countries which prompted buying in equities. Financials, materials & infra stocks gained with gold & oil prices seeing profit booking

Bombay Stock Exchange Building
The outlook is a positive start. Asian indices opened in the green with most markets still in holiday mode. The retracement of the US$ saw currency gains for most countries which prompted buying in equities. Financials, materials & infra stocks gained with gold & oil prices seeing profit booking   

After a year of negligible gains for the Indian equity market, 2017 starts on hopes that this year will be better in many aspects. During the year, the Nifty hit a low of 6826 in Feb 2016 then surged to 8969 in September 2016. Then came a plethora of concerns which reduced the risk appetite for emerging markets. Trump's US presidential victory, strengthening of US Dollar and the demonetization drive dominated the headlines towards the end of the year.

The much-awaited New Year's address by Prime Minister Narendra Modi saw a slew of initiatives being announced which focused on the rural segment, small businesses, women and the banking sector. 

The PM highlighted a stark reality that a mere 24 lakh Indians had declared that they had an annual income of above Rs 10 lakhs.
Bank stocks will be in focus after leading lenders announced a cut in loan rates. Profit booking is expected at higher levels later in the day unless global markets keep the momentum going. 

The Indian economy remains one of the fastest growing economies as it grew 7.2% in the first half of the current fiscal.

Among other stocks in focus:

SBI, PNB, Union Bank: State Bank, Punjab National Bank and Union Bank slashed their benchmark lending rates by up to 90 basis points.

Infosys Ltd: Infosys Ltd has offered $868,250 in severance pay to former chief compliance officer and executive vice-president David Kennedy, who quit the company on Saturday, drawing flak for awarding such unusually high compensation to an outgoing executive.

Maruti Suzuki: India’s largest car maker Maruti Suzuki India reported 1% decline in total sales at 117,908 units in December 2016 as against 119,149 units in the year-ago period. The company’s domestic sales stood at 106,414 units, down 4.4% from 111,333 units in December 2015. Read more

PSU Oil stocks: Petrol price was on Sunday hiked by Rs1.29 a litre, the third increase in a month, and diesel rate was raised by 97 paise a litre, the second hike in a fortnight.

Coal India: Coal India allocated 3.1 million tonnes of coal under spot e-auction in November 2016, down 29.5% from the year-ago period.

Lakshmi Vilas Bank: Private sector Lakshmi Vilas Bank has raised Rs 167.8 crore through issuance of 1.19 crore equity shares on qualified institution placement (QIP) basis.

Transformers and Rectifiers (India): The company has informed bourses that it has been awarded the order for 40 No. of 15MVA and 40 No. of 20MVA Power Transformers with Natural/synthetic EsterBSE 0.26 % Oil of 66 kV Class amounting to Rs 92 crore from Gujarat Energy Transmission Corporation Limited (GETCO).

Premier Explosives: The company has bagged an order worth Rs 33.18 crore from the Ministry of Defence for supplying chaffs and flares.

Bombay Dyeing: Bed and bath linen retailer Bombay Dyeing & Manufacturing Co said it has inked an agreement for sale of land, building and some machinery of Ranjangaon unit at an aggregate value of Rs 174.45 crore.

Siemens: In a major land deal, realty firm K Raheja Corp and Singapore's sovereign wealth fund GIC will jointly purchase a property located at Worli, Mumbai for Rs 610 crore from Siemens.

Eicher Motors: Royal Enfield, the two-wheeler division of Eicher Motors, reported a 42% jump in total sales at 57,398 units in December 2016. The two-wheeler manufacturer had sold 40,453 units in December 2015, Eicher MotorsBSE 1.56 % said in a BSE filing. 

 

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