Indian stock markets are likely to take cues from the global events ranging from dull Asian markets, US tax cuts, Saudi Arabian political tensions, rising oil prices on Wednesday. Meanwhile, Asian shares paused at decade peaks and the dollar dipped on Wednesday amid concerns Republican plans for major US tax cuts were running into headwinds even before the Senate releases its own version of the proposals. Investors were also keeping a wary eye on Saudi Arabia’s sweeping anti-graft purge and an escalation of tensions with Iran, though oil prices did ease from their highs. The Dow Jones Industrial Average make out a fourth consecutive record high close on Tuesday, while the S&P 500 ended marginally lower after a disappointing profit forecast from Priceline and a drop in financials.
India’s third largest private sector life insurance company, HDFC Standard Life Insurance’s initial public offering got oversubscribed by 17% at the end of second day of bidding, backed by strong demand from institutions.
3.30 pm: Buy these two stocks under Rs 500 to gain up to 47%
The stock markets appear to have taken a slight breather, as Sensex extended losses for second consecutive session on Wednesday. At such a time, Angel Broking has identified two stocks which are trading under Rs 500, which have an upside of up to 47%.
While Sensex may have surged by more than 25% in the year so far, Leo Puri of UTI AMC says that the return on equities going forward maybe in the range of 10-12%, and investors must look beyond stocks.
While the earnings season has been good so far improving the overall sentiment leading to surge in the equity benchmark indices Sensex and Nifty, Arvind Sanger of Geosphere Capital says that the stock markets could see a slight correction in the near term.
Foreign investors may have turned cautious of the rally in Indian stock markets, however, Cartica Management LLC, which manages more than $3.2 billion of assets globally is convinced that India is going through a quality stock market rally.
It has been a year since Prime Minister Narendra Modi announced demonetisation, and mutual fund inflows have seen an unprecedented rise since then.
Global research firm CLSA has reiterated its bullishness on the shares of Cipla Ltd, after the pharma firm reported a 19% rise in consolidated profit to Rs 422.59 crore for the quarter ended September-17.
9.37 am: Sensex bounces back, gains 100 points as oil price weakens; Cipla, Axis Bank lead, Airtel dives 3%: Indian stock markets opened marginally higher on Wednesday following a little softening in the crude oil prices and a continued optimism about the second-quarter corporate earnings.
8.50 am: Stocks of NDTV, PNB, Tata Coffee, DCM Shriram will be in focus today; Voltas, Bharat Forge Q2 earnings ahead: Indian stock markets are likely to open marginally lower on Wednesday following the political tensions in Saudi Arabia and a dull wall street closing on Tuesday
With input from Agencies