Today’s Share Market Outlook

• Market up 100 pts, Nifty flat; Bharti, HDFC, BHEL laggards
• Ashok Leyland hits record high, up 8% on Dec sales data
• Crude related losses may skew Q3 earnings picture: Morgan
• Gold imports rise 8.5% to 849 ton in 2014
• MP govt to purchase 1.70 lakh tonne wheat from Indore farmers
• Rains boost wheat, chana, mustard produce

The market has regained some losses. The Market is up 101.03 points at 27988.93 and the Nifty is up 24.65 points at 8420.10. About 1612 shares have advanced, 844 shares declined, and 629 shares are unchanged. The market has gone flat. The Market is down 20.66 points at 28007.00 and the Nifty is up 31.20 points at 8426.65. About 1592 shares have advanced, 797 shares declined, and 623 shares are unchanged.

Shares of Ashok Leyland rallied as much as 7.6 percent intraday to hit a life high of Rs 57.45 on Monday post strong sales data in December. The commercial vehicle maker reported a 48 percent rise in sales at 9290 units in December 2014 compared to 6,275 units sold in the same period last year.

Brokerage house Morgan Stanley feels that inventory losses because of the steep fall in crude oil prices could distort the aggregate corporate earnings picture for the December quarter. “In the ongoing quarter, several companies might suffer from inventory losses given the swing in oil and oil related commodity prices and hence headline numbers which get reported in January/February may be misleading,” says the brokerage in its note to clients.

Despite stringent controls like the 80:20 schemes on gold imports for most parts of 2014, imports of the precious metal are projected to have increased 8.5% to 849 ton in the year compared to 2013. From June onwards, the average monthly imports stood at 90 ton while in November, when the curbs were relaxed, imports stood at 151 ton or $5.6 billion.

State government will buy 1.70 lakh tonne of wheat from farmers in Indore district in current year."This year we have set a target to purchase 1.70 lakh tonne of wheat from farmers for which elaborate arrangements are being made. Last year, we had bought 1.67 lakh tonne of wheat," said district collector Akash Tripathi. He said government will soon decide the minimum support price for the purchase.

The recent rains in much of north and central India have come as a boon for the standing rabi crops, which, in the absence of adequate pre-winter showers and low monsoon, were threatening to be below-par in terms of production. The rains, which started around late December 2014 in central India, have spread to the north and north-western parts of the country since January 1, 2015. The showers are due to the convergence between moisture-laden winds from the Arabian Sea and the Bay of Bengal.

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