Quantum Securities on Tuesday said that the positive phase for market is likely to continue. In a conversation with CNBC TV18 it said that remonetisation coupled with GST is a lethal combination for equity market. “Building material, cement and steel are the biggest beneficiaries of GST,” it added. Speaking on the Infosys issue, Quantum Securities said, “We are disappointed the way Infosys founders positioned themselves. We will remain positive on Infosys unless major exits are seen.”
Meanwhile the Indian shares were largely flat on Tuesday amid weak Asian markets, and gains in energy stocks were offset by losses in financial and auto stocks. The broader NSE index was down 0.17 percent at 8,790.40 as of 0535 GMT, dragged down by auto and IT stocks. The benchmark BSE index was 0.06 percent lower at 28,335.64.
Reliance Industries and GAIL were among the top gainers while Hero MotoCorp was among the top losers. Nifty Auto index, which has risen about 9 pct this year, was trading 0.54 percent lower.
Foreign institutional inflows have been subdued after the government decided to ban higher denomination notes on Nov. 8. “There isn’t much action driving the market at the moment … It will take another quarter to recover (from demonetisation effect),” said Kaushik Mukherjee, Partner, BMR Legal.
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Foreign investors have net purchased shares worth net $326.06 million so far this month and $319.67 million this year.. They had net bought stocks worth $2.90 billion in 2016, down from a net $3.27 billion invested in 2015. The Nifty PSU Bank index fell 0.55 percent. It lost about 3 percent in the previous session.
State-run Hindustan Petroleum Corp’s shares fell as much as 3.5 percent in their biggest intraday percent drop since Dec. 15, 2016 after Dec-quarter average gross refining margin fell to $5.57 per barrel.
(With inputs from Reuters)