9:50 am Citi on Motherson Sumi: Citi has maintained sell call on Motherson Sumi, with target price at Rs 245 after Q3 results were broadly in-line with estimates. Strong earnings were driven by healthy business and EBITDA included Rs 34.6 crore of forex gain. SMP missed estimates, where EBITDA was impacted by startup cost of new plants. Growth in standalone revenue was driven new models and higher content per vehicle. There was no
immediate impact on orders due to expectation of border tax in US, the brokerage house says.
Citi feels revenue growth target of USD 18 billino for FY20 seems optimistic and priced in. The stock may see potential derating in case of a possible FY20 revenue target miss.
9:35 am Buzzing: Shares of GVK Power touched 52-week high of Rs 7.70, rising nearly 17 percent intraday Tuesday as it has won the bid to develop the Navi Mumbai airport.
GVK, which operates Mumbai international airport, has won a bid to develop Navi Mumbai airport beating its competitor GMR Infrastructure, which is operating New Delhi airport.
The said airport, first proposed in 1997 and approved by the government in 2007, has been delayed by problems related to land acquisition and securing environmental clearances, which is expected to be operational in 2019.
GVK Power’s board will meet on February 14, to consider and take on record the unaudited standalone financial results for the quarter and nine months ended December 31, 2016 (Q3).
9:15 am Market Check
Equity benchmarks opened flat, following sideways trade in Asian peers on Tuesday. Investors digested January retail inflation that came in at 3.17 percent against 3.41 percent in December.
The 30-share BSE Sensex was up 12.66 points at 28364.28 and the 50-share NSE Nifty fell 9.30 points to 8795.75.
Hindalco, Bharti Infratel, Grasim, Sun Pharma, ONGC, Tata Steel, HUL and Wipro were early gainers while BPCL, ACC, Ambuja Cements, Infosys, BHEL, Tata Motors, SBI and Dr Reddy’s Labs were under pressure.
The Indian rupee rebounded in early trade, with gaining past its 67 level against the US dollar
It has opened higher by 5 paise at 66.97 per dollar against previous close of 67.02.
Bhaskar Panda of HDFC Bank says he expects the USD-INR pair to remain rangebound.
The pair is expected to trade in a range of 66.95-67.30/dollar today, according to him.
The dollar rose to a near three-week high against a basket of currencies, lifted by hopes of US tax cuts as well as bets on whether the Federal Reserve may raise interest rates more quickly.
Asian markets traded sideways, as an Australian survey revealed improved business conditions and China’s consumer inflation picks up strongly.
US equity indexes hit record highs on Monday, with the benchmark S&P 500’s market value topping USD 20 trillion as investors bet tax cuts promised by President Donald Trump would boost the economy.
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