Bharat Iyer of JP Morgan believes India hasn’t lost its star
status permanently and FII money is just being rotated into other countries.
Iyer’s views come on the back of brokerage house HSBC downgrading India over
poor earnings growth and little room for rate cuts. In an interview to
CNBC-TV18, Iyer says the equity market may correct further from its current
levels but caps the fall to 5 percent. Iyer believes the central bank Reserve
Bank of India (RBI) can cut policy rate one more time this year.
The market continues to gain strength bit by bit. The Sensex
is up 374.17 points or 1.4 percent at 27251.65 and the Nifty is up 112.35 points or 1.4 percent at 8239.30.
About 1223 shares have advanced, 393 shares declined, and 106 shares are
unchanged.
GAIl, M&M, HDFC, SBI and Hero are top gainers in the
Sensex. Among the losers are Hindalco, NTPC and Vedanta.
Oil prices extended gains in Asia on a weaker dollar and
amid expectations the latest US crude-oil inventories report will show a
decline, easing a global supply glut, analysts said.
US benchmark West Texas Intermediate (WTI) for June delivery
gained 46 cents to USD 61.21 while Brent crude for June rose 20 cents to USD
67.06 in mid-morning trade. WTI surged USD 1.50 in New York while Brent closed up
USD 1.95 in London, gaining support from a weaker US dollar.
The greenback bought 119.78 yen in Asia today, down from
119.90 in New York on Tuesday and 120.11 on Monday. A weaker greenback makes
dollar-priced oil cheaper for buyers using weaker currencies, boosting demand
and pushing global prices higher.
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