The #Sensex rose 17.88 points to 26860.91 and the Nifty advanced 3.35 points to 8224.15. About 1098 shares advanced against 977 declining shares on BSE. 10:45 am FII View:
With India Inc's good earnings show in the March quarter in FY16, Citigroup has revised its Sensex target for FY17. The US-based brokerage now expects Sensex to touch 28,800 points by the end of FY17.
In an interview to CNBC-TV18, Surendra Goyal, Head of Research at Citigroup India, said 47 of BSE100 companies have exceeded estimates in the fourth quarter of FY16.
He added whenever earnings momentum has been positive, the market tends to trade at higher-than-mean valuations.
He said, "If the momentum trajectory continues, higher multiples can not be ruled out." Goyal said the brokerage expects a 14 percent earnings growth on the Sensex for FY17.
CLSA on HDFC: With maintaining buy rating and target price of Rs 1,440 on HDFC, CLSA says it has raised earnings per share (EPS) by 3 percent after the housing finance company completed the sale of 23 percent stake in HDFC Ergo General to its partner.
CLSA on HDFC: With maintaining buy rating and target price of Rs 1,440 on HDFC, CLSA says it has raised earnings per share (EPS) by 3 percent after the housing finance company completed the sale of 23 percent stake in HDFC Ergo General to its partner.
Further upsides may arise from the sale of 10 percent stake in the life insurance subsidiary (IPO planned), it says. Post the transaction, HDFC's stake will decline to 51 percent and the rest will be owned by Ergo International.
The brokerage says the deal will lead to a pre-tax profit of Rs 920 crore and post-tax profit of Rs 730 crore, adding the management plans to utilise 30 percent of pre-tax profit (Rs 280 crore) to build provisions for any unexpected risk (HDFC has built provisions of about 30 bps of loans with recent stake sales in insurance subsidiaries).
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