Sensex up over 200 pts ahead of GDP data, rupee strong

The market is on a roar pocketing over 200-points gains in early morning trade. The Sensex is up 240.35 points or 1.17 percent at 20775.26, and the Nifty is up 75.65 points or 1.24 percent at 6167.50

Neelkanth Mishra of Credit Suisse expects another 4-5 percent cut to FY14 Nifty consensus earnings per share (EPS) and meaningful downside revisions to FY15 expected EPS growth as well. “We expect cuts to come from financials, materials and industrials and stay underweight on these sectors,” he told CNBC-TV18 in an interview.

The market kicked-off December serieson a positive note with the Sensex rising 100 points and the Nifty reclaiming the 6100 level supported by financials, FMCG and oil & gas stocks.

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Gross domestic product (GDP) data for the July to September quarter is due today. According to a CNBC-TV18 poll, it is likely to be at 4.7 percent vs 4.4 percent a quarter ago. A number closer to 5 percent is likely to cheer the equity and rupee markets though it could keep the fears of a rate hike alive.

The Indian rupee opened with a marginal gain of 11 paise at62.30 per dollar on Friday as against previous day’s closing of 62.41. Tushar Poddar of Goldman Sachs expects3-month, 6-month and 12-month dollar-rupee rate at 64/USD, 65/USD and 65/USD, respectively.

He sees risks on both sides of forecasts. “Domestically, potential upside risks would be a jump in investment activity after elections, and/or a sharper-than-expected fall in inflation. Downside risks include the possibility of an unclear verdict in the elections which would exacerbate investor uncertainty,” he adds.

Stocks in news:

Wipro stocks are up 0.39 percent up. With the Bruhat Bangalore Mahanagar Palike (BBMP) charging Wipro of evading property tax, the two entities may be staring at a long drawn legal battle. On Wednesday, MS Shivaprasad, the Chairman of the BBMP had made a statement accusing Wipro of not paying Rs 16.47 cr of property tax. However, Wipro refutes the allegations calling the tax demand unsubstantiated.

ITC Is among the gainers in BSE FMCG index, up 1.7 percent

Top gainers in BSE realty index - Peninsula rises 3.5 percent, Unitech gains 2.2 pct, DLF rises 1.5 percent, DB Realty gains 1.5 percent

BSE bankex extends gains to more than 1.5 percent; top banks jump - ICICI rises 2.2 pct, SBI gains 1.8 percent, HDFC Bank gains 1.7 percent