Wednesday, 13 May 2015

Nifty hovers around 8250, Sensex strong

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. 

No comments:

Post a Comment