Markets snapped a 3-day losing streak, building on gains made through the day. The Sensex surged over 300 points at the close following positive global markets. The Nifty finished above the 7,800 mark. The gains on the benchmark indices were led by index heavyweights such as HDFC Bank, HDFC, Axis Bank, Tata Motors and L&T. All setoral indices ended in the green.
The Midcap and Small Cap indices too ended with robust gains.
On the global front, major Asian markets closed in the green while European shares too rose in early trade. China and Hong Kong markets were shut today.
CLSA Trims Sensex Target
Foreign brokerage CLSA has trimmed its Sensex target for December 2015 to 30,000 from 31,800 citing a cut in earnings estimates over the next couple of years.
The brokerage said companies in sectors such as metals, oil, cement, public sector banks, property and capital goods could see highest earnings cuts, while pharma and technology stocks could see upgrades.
The recent drop in global commodity prices helps India’s macro as it lowers India’s twin deficits and inflation pressures. While India will likely emerge as a relative beneficiary, a worsening global growth outlook would negatively impact corporate earnings.
— CLSA analysts, led by Mahesh Nandurkar, in a note to clients
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