Monday, 13 October 2014

Today Sensex & Nifty weak; pharma, private banks, auto decline

The market remained under pressure with the Sensex falling 106.11 points to 26191.27 and the Nifty declining 41.65 points to 7818.30 weighed down by private banks, auto, healthcare, oil & gas and capital goods stocks. Declining shares outnumbered advancing ones by a ratio of 1323 to 996 on the Bombay Stock Exchange. Infosys gained another 1.4 percent as brokerages increased target price on the stock. Barclays raised its target from Rs 3,800 to Rs 4,650 as new CEO's plan to embrace newer technologies such as automation and AI to drive growth, is a step in the right direction. While Nomura raised target price to Rs 4,300 given a supportive demand environment, higher comfort on current management and likely cash return possibility. ACC fell 2 percent as the Odisha and Jharkhand governments have issued closure notices to ACC's limestone mines at Chaibasa and Bargah which will impact total clinker production.
The management said that the grinding units of these plants are continuing with transfer of clinker from sister works. Future Retail climbed 2.6 percent after the company signed agreement with Amazon to sell goods online. Future group will sell more than 45 own labels of apparel initially. Morgan Stanley said this agreement with Amazon could be a game changer for Future Group and is a step forward in the group's Omni channel strategy. OBC gained nearly 2 percent after Goldman Sachs upgraded the bank to buy from neutral with a target price of Rs 350.

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