Watch the interview of Chandan Taparia of Anand Rathi with Ekta Batra & Anuj Singhal on CNBC-TV18, in which he shared his reading and outlook on market and specific stocks.
Watch the interview of Chandan Taparia of Anand Rathi with Ekta Batra & Anuj Singhal on CNBC-TV18, in which he shared his reading and outlook on market and specific stocks.
Willem Buiter of Citigroup believes India is back on the reforms path, he adds: "India did better in 2014 than 2013 and I expect that this momentum will be maintained. We've got very sound monetary and exchange rate management. We've got better fiscal management than we had."
India's GDP can grow in the 6 percent range next year, says Citigroup's global chief economist Willem Buiter, formerly member of the monetary policy committee of the UK and a highly acclaimed economist and central banker.
Claiming that the country is back on the reforms path, he adds: "India did better in 2014 than 2013 and I expect that this momentum will be maintained. We've got very sound monetary and exchange rate management. We've got better fiscal management than we had."
But the clamour for lowering interest rates is rising by the day. Buitler says it is always the case with political authorities – they want to eat the cookies before they have been baked properly. He feels Reserve Bank governor Raghuram Rajan must make sure that not just headline inflation, but the underlying inflation and trend inflation remains under control before taking a decision on rates.
Going ahead, there is also a possibility of currencies of emerging markets weakening, including the rupee, along with external inflationary pressures which at the moment are masked by weakness in commodity prices, especially oil, says Citigroup. "But as and when US exits from its zero rate policy, there will be downward pressure on the rupee as well," Buitler told CNBC-TV18. He believes the central bank will always be cautious with inflation targeting.
Moving on to the global scenario, he believes that the US Federal Reserve will not raise rates until the second half of 2015. He expects the Fed to wait till inflation hits target range.
But a bigger global concern is the Russian market. Decline in crude oil prices and the 50-60 percent rouble depreciation led to the country's financial problems, says Buiter. "Russian corporates including Russian banks that have borrowed from abroad in dollars and other hard currencies are going to be in deep trouble and it may well be insolvency in default...but not at a softer level," he adds.
Prakash Diwan, Director at Altamount Capital Management is of the view that one can buy JK Tyre and Industries on dips.
"Tyre companies are getting re-rated of sorts with the kind of benefits that they will get. JK Tyre and Industries has been a promising stock for lot of reasons, underowned earlier, has a great replacement market story and commercial vehicle (CV) cycle is turning around. However, people need to get cautious at these levels and not go overboard investing too much into these stocks nibble into these but buy on dips not necessary on days like this," he said.
Sudarshan Sukhani of s2analytics.com is of the view that Hindustan Unilever may test Rs 1000.
At 11:47 hrs Hindustan Unilever was quoting at Rs 765, down Rs 1.45, or 0.19 percent. It has touched an intraday high of Rs 768 and an intraday low of Rs 754.35.
According to Angel Broking, Indian Rupee are expected to trade on a negative note on the back of strength in the DX following Yellen's announcement. Additionally, concerns over the global economic growth coupled with yearend position adjustments will act as a negative factor.
Dollar/INR
The Indian Rupee retreated from 13-month lows and ended 0.2 percent higher after the central bank stepped up intervention which was larger than in recent sessions.
Also, buying of shares by state-run Life Insurance Corporation of India helped shares recover from earlier falls to trade flat turned out to be supportive for the currency. The currency touched an intra-day low of 63.88 and closed at 63.52 on Tuesday.
For the month of December 2014, FII inflows in equities totaled at Rs.5859.22 crores ($952.6 million) as on 17th December 2014. Year to date basis, net capital inflows stood at Rs.101878.66 crores ($16877.19 million) as on 17th December 2014.
Outlook
From the intra-day perspective, we expect Indian Rupee to trade on a negative note on the back of strength in the DX following Yellen's announcement.
Additionally, concerns over the global economic growth coupled with yearend position adjustments will act as a negative factor.
For all commodities report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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12:18
Moneycontrol Bureau The market maintains strong uptrend in noon trade despite some profit booking at higher levels. The Sensex climbed 267.52 points or 1 percent to 26977.65 and the Nifty jumped 78.05 points or 0.97 percent to 8107.85 while the BSE Midcap and Smallcap indices rallied 2-2.5 percent.About 1864 shares have advanced while 545 shares declined on the Bombay Stock Exchange.
Market experts remain bullish despite the recent correct in the equity markets. Adrian Mowat of JPMorgan says he is not worried about a little bit of volatility in emerging markets. Nirmal Jain too is betting on India, saying 2015 can emerge as a good year for the market.
Gail, BHEL, Hindalco Industries, Tata Power, ICICI Bank and Jindal Steel topped the buying list, up 3-4.5 percent while Hero Motocorp, HDFC, HUL and Reliance Industries are only losers on Sensex.
In the broader space, Intellect Design Arena, the demerged BFSI focused product company from Polaris, listed on the stock exchanges today. The stock traded almost 5 percent higher after listing at Rs 69.25 per share.
Sentiment today is boosted by the Cabinet passing the Constitutional Amendment Bill on Goods and Services Tax on Wednesday. The GST bill is likely to be tabled in the ongoing winter session now. Likely beneficiaries include companies from the logistics sector such as Gati and Snowman Logistics. Kotak said organised companies in unorganised sectors will also benefit, which are Exide Industries, Amara Raja, Pidilite, Marico amongst others.
Globally, Asian equities are mostly higher on US Fed's decision to be patient in raising interest rates. Brent crude jumped above USD 61 per barrel.
Karvy believes that, Natural Gas prices may see good volatile behavior in coming sessions however technical analysis supports the bearish view and thus look to the sell NG today, says the report.
Review:
Natural gas commodity traded moderately in the green in till European session however saw huge decline in latter half and closed 2.7% lower at NYMEX
Jan expiry contract at NYMEX shut lower by 2.7% to $3.61 per MMBTU level whereas at MCX, NG for Dec settlement was weaker by 1.6% to Rs 235 per MMBT with less loss locally due to Rupee depreciation.
Outlook: Natural gas prices fell in late trade though we had a cautious outlook on the commodity as weather related updates did hinted for moderate cooler temperatures coming back into the US in latter half of December. While there are no major changes in weather over next 2 weeks time frame, probably commodity fell yesterday as immediate outlook from US CPC for 6-10 days is now expected to be much warmer than earlier thus probably lowering the demand expectations for the commodity. We believe prices may see good volatile behavior in coming sessions however our technical analysis supports the bearish view and thus look to the sell NG today.
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Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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Artson Engineering Ltd has informed BSE that the Company has received a Letter of Intent (LoI) for Fabrication and Painting of chemical storage tanks at Sharjah, UAE. The estimated contract price is AED 6.2 Million (approx. Rs. 10.70 Crore).
Artson Engineering Ltd has informed BSE that the Company has received a Letter of Intent (LoI) for Fabrication and Painting of chemical storage tanks at Sharjah, UAE. The estimated contract price is AED 6.2 Million (approx. Rs. 10.70 Crore).Source : BSE
Read all announcements in Artson Engg
According to Angel Commodities, Cotton futures may trade on a mixed to negative note. Selling on higher levels may negative for the prices.
Kapas
Yesterday, Cotton complex traded on a negative note on availability of cotton in physical market and profit booking by stockiest in futures market on higher levels. MCX Cotton Dec Futures settled 0.57% lower and NCDEX Kapas April'15 settled 1.12% lower yesterday.
According to Cotton Association of India (CAI) cotton output in the country would stand around 402 lakh bales in season 2014-15, slightly lower than the production of previous season when it was 407.25 lakh bales. The expected fall in production in Gujarat has been considered the reason for the fall in production in the country. Gujarat is projected to produce 122 lakh bales of cotton this season compared to 129.5 lakh bales previous season.
In global markets, cotton prices have been moving in downward track since past few months. Weaker consumption in local and declining exports from major producing nations apart from China's new policy impacts have been adding concerns among buyers.
Cotton prices in China India and Pakistan have fallen by 25 to 30 per cent and on the international market the commodity has lost nearly 75 per cent from last year.
Domestic Production and Consumption
Last year in 2013-14 the cotton production in India was 3.75 crores of bales (one bale has 170 kilo cotton) and this year the soon coming bumper crop will be around 4 crores bales. In Madhya Pradesh the cotton growing area was 10 lakh hectares last year while production will be around 20 lakh bales this year.
India's cotton exports from India have dropped by 40 per cent year on year with prices declining upto 30 per cent for the same time period.
Global Cotton Updates (WASDE Report)
The U.S. cotton supply and demand estimates for 2014/15 include lower production and ending stocks compared to last month. Production is reduced 474,000 bales, due mainly to a lower crop estimate for Texas. Domestic mill use and exports are unchanged. Ending stocks are now forecast at 4.6 million bales, or one-third of total disappearance. The marketing-year average price received by producers is projected at 59 to 64 cents per pound, an increase of 3 cents on the lower end of the range, based on stronger-than-expected early season prices.
Outlook
Cotton futures may trade on a mixed to negative note. Selling on higher levels may negative for the prices.
For all commodities report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
To read the full report click here
Watch the interview of Navneet Damani of Motilal Oswal Commodities Broker with Ekta Batra and Anuj Singhal on CNBC-TV18. He spoke about the current trend in commodities markets.
Watch the interview of Navneet Damani of Motilal Oswal Commodities Broker with Ekta Batra and Anuj Singhal on CNBC-TV18. He spoke about the current trend in commodities markets.
