MUMBAI: Benchmarks were moving in a narrow range as profit booking in index heavy-weight Reliance Industries and Axis Bank after Q4 results kept bull under check. Gains in FMCG, banks and IT stocks were offset by losses in oil&gas, power and realty space.
"After the long Easter weekend, world markets will try to remain resurrected despite a series of headwinds. As has been the case lately, earnings will continue to dominate the headlines for a few more days. Talking of India, the disappointment from index bellwether Reliance could put a lid on gains at least in the early trade. The start could be subdued but we could see some positive action later in the day.
Overall, the undertone should remains upbeat as equities across the globe have been resilient in the face of sovereign debt concerns, MENA tension and inflation worries. For India, the good thing is FIIs continue to be net buyers. Although results have been mixed, YoY growth in profits and sales is robust. Inflation remains a major pressure point, resulting in expectations of further rate hikes," said IIFL report.
At 9:50 am; National Stock Exchange's Nifty was at 5890.35, up 5.65 points or 0.10 per cent. The broader index touched a high of 5893.10 and low of 5857 in trade so far.
Bombay Stock Exchange's Sensex was at 19640.53, up 38.30 points or 0.20 per cent. The 30-share index hit a high of 19657.29 and low of 19531.4 in early trade.
BSE Midcap Index was up 0.42 per cent and BSE Smallcap Index moved 0.58 per cent higher.
Amongst the sectoral indices, BSE FMCG Index was up 0.70 per cent, BSE PSU Index gained 0.64 per cent and BSE Bankex moved 0.56 per cent higher. BSE Oil&gas Index declined 1.09 per cent and BSE Power Index slipped 0.16 per cent.
Nifty losers included Axis Bank (-3.43%), Siemens (-3.30%), Reliance Industries (-2.37%), Jindal Steel (-1.65%) and Maruti (-0.69%).
"Reliance Industries posted below expected numbers in Q4FY11 driven by lower-than-expected GRM and lower-than-expected petrochemical margins. The company saw flattish refinery throughput and 22% jump in its GRM to US$9.2/bbl against our expectation of US$9.8/bbl," said IDBI Capital report. The brokerage has recommended investors to 'Accumulate the stock.
"Axis Bank's PAT was above expectation but disappointed on margin front. Despite strong growth, NII remained muted due to margin compression. Net interest margin declined sequential owing to rise in term deposit rates. Increase in spread between saving deposit and term deposit has cannibalized the savings deposit leading to decline in its proportion by 3.5% sequentially, translating to average CASA decline of 4% to 37%," said MF Global report. It has maintained 'Buy' rating on the stock with target price of Rs 1740 per share
HCL Tech (4.32%), SBI (2.44%), PNB (1.98%), Ranbaxy Laboratories (1.32%) and M&M (1.29%) were the major gainers.
Market breadth was positive on the NSE with 1204 gainers against 760 losers.
Asian markets were witnessing a mixed session. Nikkei 225 was down 0.05 per cent, Taiwan Weighted gained 0.05 per cent and Hang Seng moved up 1.01 per cent higher.
"After the long Easter weekend, world markets will try to remain resurrected despite a series of headwinds. As has been the case lately, earnings will continue to dominate the headlines for a few more days. Talking of India, the disappointment from index bellwether Reliance could put a lid on gains at least in the early trade. The start could be subdued but we could see some positive action later in the day.
Overall, the undertone should remains upbeat as equities across the globe have been resilient in the face of sovereign debt concerns, MENA tension and inflation worries. For India, the good thing is FIIs continue to be net buyers. Although results have been mixed, YoY growth in profits and sales is robust. Inflation remains a major pressure point, resulting in expectations of further rate hikes," said IIFL report.
At 9:50 am; National Stock Exchange's Nifty was at 5890.35, up 5.65 points or 0.10 per cent. The broader index touched a high of 5893.10 and low of 5857 in trade so far.
Bombay Stock Exchange's Sensex was at 19640.53, up 38.30 points or 0.20 per cent. The 30-share index hit a high of 19657.29 and low of 19531.4 in early trade.
BSE Midcap Index was up 0.42 per cent and BSE Smallcap Index moved 0.58 per cent higher.
Amongst the sectoral indices, BSE FMCG Index was up 0.70 per cent, BSE PSU Index gained 0.64 per cent and BSE Bankex moved 0.56 per cent higher. BSE Oil&gas Index declined 1.09 per cent and BSE Power Index slipped 0.16 per cent.
Nifty losers included Axis Bank (-3.43%), Siemens (-3.30%), Reliance Industries (-2.37%), Jindal Steel (-1.65%) and Maruti (-0.69%).
"Reliance Industries posted below expected numbers in Q4FY11 driven by lower-than-expected GRM and lower-than-expected petrochemical margins. The company saw flattish refinery throughput and 22% jump in its GRM to US$9.2/bbl against our expectation of US$9.8/bbl," said IDBI Capital report. The brokerage has recommended investors to 'Accumulate the stock.
"Axis Bank's PAT was above expectation but disappointed on margin front. Despite strong growth, NII remained muted due to margin compression. Net interest margin declined sequential owing to rise in term deposit rates. Increase in spread between saving deposit and term deposit has cannibalized the savings deposit leading to decline in its proportion by 3.5% sequentially, translating to average CASA decline of 4% to 37%," said MF Global report. It has maintained 'Buy' rating on the stock with target price of Rs 1740 per share
HCL Tech (4.32%), SBI (2.44%), PNB (1.98%), Ranbaxy Laboratories (1.32%) and M&M (1.29%) were the major gainers.
Market breadth was positive on the NSE with 1204 gainers against 760 losers.
Asian markets were witnessing a mixed session. Nikkei 225 was down 0.05 per cent, Taiwan Weighted gained 0.05 per cent and Hang Seng moved up 1.01 per cent higher.
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