Nilesh Shah, Managing Director, Kotak Mahindra Asset
Management is bullish on corporate earnings growth for FY17, and sees a 20
percent increase as the full impact of the recovery in the economy and the the
uptick in capex cycle kicks in.
He expects fourth
quarter earnings (FY15) to be as disappointing as the preceding quarter's
performance. He sees trouble for even defensive sectors as FMCG companies will
be hit by the demand slowdown in rural areas and IT companies' margins will be
impacted by cross currency volatility because of the strength in the dollar.
The market gained further in early trade ahead of RBI
policy. The Sensex rose 81.51 points to 28585.97 and the Nifty advanced 16.70
points to 8676.60. About 594 shares have advanced, 135 shares declined, and 88
shares are unchanged on the BSE.
Sun Pharma, Reliance Industries, HDFC, Tata Power, ONGC,
Cipla, Cairn India, NMDC and Tech Mahindra gained 0.6-1 percent while BHEL, Dr Reddy's
Labs, HDFC Bank, BPCL, Power Grid Corp, GAIL and Idea Cellular declined.
The Indian rupee opened marginally lower at 62.22 per dollar
on Tuesday versus 62.18 Monday.
Ashutosh Raina of HDFC Bank said, "Reserve Bank of
India (RBI) is widely expected to keep policy rates on hold in its credit
policy today. A small cut though cannot be ruled out."
He further added, "The rupee continues to trade in
61-62/dollar range, with strong intervention capping any gains. This trend is
expected to continue."
The dollar firmed in trade having recovered almost all of
its losses as the euro came under renewed pressure.
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