3:15 pm Bullish World Bank: In a major boost to the market,
World Bank estimates India’s GDP growth at 7.5 percent in FY16 and 7.9 percent
in FY17. It says that India needs to further rationalise subsidies. World Bank
thinks tax-to-GDP ratio may rise after India implements GST but land
acquisition remains hurdle in the country's efforts to boost infrastructure.
3:00 pm Market check: The market does a somersault and
surges ahead. The Sensex is up 285.89 points or 1 percent at 27462.88, and the
Nifty is up 89.60 points or 1 percent at 8303.40. About 1565 shares have
advanced, 1069 shares declined, and 148 shares are unchanged.
Bank Nifty soars 3 percent on short covering. Pull back seen in select mid
cap stocks after recent sell off.
2:30 pm Economy outlook: Rural India has been a growth
driver for auto industry, but sales are under pressure currently, said Saurabh
Mukherjea of Ambit Capital. He sees an increase in corporate bad debts for
private banks. Mukherjea expects sluggish economic growth for next 6-7 months,
and advises investors to buy companies with strong balance sheets. He
recommends avoiding stocks dependent on rural consumption and investment cycle.
Ambit has cut GDP growth forecast for FY16 from 7.9 percent YoY to 7.5 percent
YoY.
It sees FY16 GDP to be at same levels as in FY15. Expecting next 6-7 months
to be a weak economic phase for the country, the brokerage firm advises
investment into companies having strong balance sheets, while recommending
investors to cut exposure to rural consumption-dependent companies and to
stocks that are plays on the investment cycle.
Don't miss: 5 brokerages tell you how to trade Maruti post Q4
The market is still struggling with the Sensex is down 18.16 points at
27158.83. The Nifty is up 1.20 points at 8215.00. About 1357 shares have
advanced, 1185 shares declined, and 145 shares are unchanged.
ICICI Bank is still up 6 percent while Maruti, Axis Bank, Tata Motors and
BHEL are top gainers in the Sensex. ITC, GAIL, L&T, HUL and Infosys are
major losers.
Sugar stocks like Bajaj Hindusthan, Mawana Sugars, Sakthi Sugars are
rallying as the government may announce package for sugar sector in a day or
two. According to CNBC-TV18 sources in the food ministry, the package will
address issues related to buffer stock. It may even include decision to hike
import duty, increase ethanol blending limit and sugar release mechanism.
Meanwhile, drug major Mylan has rejected a USD 40 billion
unsolicited merger offer from Israel's Teva Pharmaceutical Industries saying
the bid "grossly undervalues" the company considering its
best-in-class assets, including a strong foothold in India. For more
information please visit this site www.sharemarket259.blogspot.in
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