Wednesday 21 September 2016

Nifty hovers around 8800, Sensex firm ahead of Fed meet outcome

The global investors has taken the view that world is awash with liquidity and anything contrary to this notion will be a spoiler, believes Saurabh Mukherjea, CEO - Institutional Equities at Ambit Capital.

“There is no economic pick-up as such in the domestic market,” says Mukherjea adding that no up-move is expected in the next six months. Ambit continues to stick with its Sensex target of 29,500 by year-end. 

However, Mukherjea says three structural changes are happening in the economy. One is the decline in public banks and the rise of small private banks and NBFCs, second is decline in railways, which will benefit the road sector and lastly, the trackdown of black money in the economy.

Equity benchmarks were marginally higher in morning trade with the Nifty reclaiming 8800 level ahead of outcome of Federal Reserve's two-day policy meeting later today.

The 30-share BSE benchmark Sensex was up 64.01 points at 28587.21 and the 50-share NSE Nifty gained 23.10 points at 8799 while the broader markets outperformed benchmarks. 

The BSE Midcap index rose 0.4 percent and Smallcap was up 0.7 percent on positive breadth. About 1427 shares advanced against 592 declining shares on the BSE.

 Japanese shares rose after the Bank of Japan (BOJ) announced it would modify its monetary policy framework. 

The BOJ kept rates at -0.1 percent, and said it would abandon its monetary base target, but would maintain its program of buying long-term Japanese government bonds at a pace so that the balance of its holdings increases by 80 trillion yen (USD 781 billion).

No comments:

Post a Comment