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Sensex consolidates, Smallcap rises over 1%; Maruti slips

11:30am FII View: The combination of a pick-up in economic and earnings growth as well as a fall in interest rate would help markets to stay strong going forward, believes Adrian Mowat of JPMorgan.

In an interview with, Mowat said that he expected earnings growth to pick up in the latter part of the new financial year and advised investors to play the expected pick-up in infrastructure indirectly through building-materials companies.

“The government is making progress in tackling issues. The passage of the insurance bill, as well as the progress in GST and on other technical issues [related to the power sector] will bode well,” he said.

A careful stock-picking approach with focus on high-quality cyclical companies and banks should fetch investors about 20 percent returns ahead, Mowat added.

11:00am Market Check

The market remained lacklustre in morning trade with the Nifty hovering around 8480 level while the broader markets extended gains. The BSE Midcap and Smallcap indices climbed 0.8 percent and 1.2 percent, respectively.

The 30-share BSE Sensex rose 6.77 points to 27964.26 while the Nifty fell 2.35 points to 8488.65. About 1520 shares have advanced, 668 shares declined, and 149 shares are unchanged.

HCL Technologies plunged 4.4 percent as the company warned of a negative 280 basis points impact on dollar revenue and negative 80 basis points impact on EBIT margins due to adverse cross currency. They also guided for margins to bemaintained between 21-22 percent. Nomura said the drop in margins to guided range seems to be happening in a quarter, which will likely lead to some cuts in street margin and earnings expectations and also some near-term moderation in the stock price.

Fertilsers stocks like Chambal Fertilisers, Zuari Agro gained ground as cabinet approved gas pooling for fertiliser sector for 30 urea manufacturing units. Zuari Agro an interview that their current gas cost will go down to USD 11-12/mmbtu from USD 20/mmbtu and will also reduce the working capital cycle.

Maruti Suzuki declined 1.7 percent on account of auto sales. The company reported a 1.6 percent year-on-year decline in total sales with domestic sales up 1.4 percent but exports down 29.3 percent. More information please visit this site


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A close beyond 10,400 levels with healthy volumes can pause the current bearishness triggering a short covering to levels of 10,640-10,730.

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A sustained trade below 10,050 can accelerate the fall to levels of 9,930-9,700. However, a close beyond 10,400 levels with healthy volumes can pause the current bearishness triggering a short covering to levels of 10,640-10,730.

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