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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Sensex, Nifty at record high again; ONGC up 2%, Maruti weak.

Morgan Stanley says in the near-term, MSCI India appears fully valued and over-owned by dedicated EM funds. "On the macro side, the recent fiscal deficit figures appear encouraging. However, we need to see whether the government continues to work towards containing expenditure in the coming months as well. If the current trend continues, this will increase the probability that the government can achieve its lower fiscal deficit target of 4.1%, which otherwise seemed ambitious." he adds.

The market has started the new week with fresh vigour after correcting for last two sessions. Both the benchmark indices are at life high. The Sensex is up 203.78 points or 0.75 percent at 27230.48, and the Nifty is up 54.00 points or 0.07 percent at 8140.85. About 1318 shares have advanced, 446 shares declined, and 58 shares are unchanged. ONGC, GAIL, ITC, HUL and Hindalco are top gainers in the Sensex. Maruti is down arpund 0.6 percent.

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Tata Motors gain 2 % and Nifty Holds 8100, Bharti gains 3%.

Stanley has upgraded its June 2015 target for the Sensex to 28800 after the recent rally, says managing director, Ridham Desai. However, that’s his conservative estimate. Desai expects the Sensex to rally as high as 33900, but with some conditions: if the government continues to work on it fiscal consolidation path and the Fed doesn’t take any disruptive policy action. If these two conditions are met, then Desai says, the Sensex has about 40 percent chance of seeing this level by June 2015.

360-degree turnaround in sentiment regarding India, apart from institutional flows has led to this market rally. And a lot of it has to be credited to the government, believes Desai. “People abroad have faith in the potency and execution of the new govt. They are sending the right signals. The Goldilock-like scenario that is unfolding, both on the macros as well as the micros, will change for sure, but we are fairly comfortable for the next three years  atleast ,” says Desai.

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