Markets pared some gains in the morning session due to losses in power shares, however buying interest emerged in defensive healthcare stocks. The S&P CNX Nifty touched was up 10 points, at 5,490 after touching a high of 5509 in the opening trades. The benchmark Sensex advanced 37 points, at 18,303.
Analysts said that pullback rally which began last Thursday may last only for a short time. Navneet Daga, Derivative Analyst, Sharekhan said, Foriegn Institutional Investors (FIIs) buying in the cash market is still languishing. Fresh money me come into the system only above 5630 levels on Nifty.”
From the power space, Lanco Infratech fell 6% after fourth quarter net profit fell 3% to Rs 446 crore weighing on other peers as well. Reliance Infra slipped 1.3% and NHPC was off 0.8% . The BSE Power index declined 0.3%.
Buying interest emerged in the healthcare segment after Sun Pharma, a leading drug maker reported 12% rise in the quarterly profit. Other stocks Dr. Reddy’s and Cipla climbed over 2% each lifting the BSE Healthcare index up 1.2%.
--------------------------------Updated 11:04 hrs
Markets opened in the green supported by gains in heavyweight Reliance Industries, ICICI Bank and HDFC Bank. The S&P CNX Nifty was up 32 points, at 5,509 and the benchmark Sensex advanced 110 points, at 18,378.
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Analysts said that pullback rally which began last Thursday may last only for a short time and markets may take cues from fourth quarter GDP data, and diesel and cooking gas price hike expected this week. If the government reports a higher GDP, it may cause Reserve Bank of India to continue its tightening cycle which will again weigh on the markets.
Sanjeev Zarbade, Vice-president (Private Client Group Research) from Kotak Securities said, “Markets may remain range-bound and move sideways in the absence of any major trigger.” Additionally commodities have seen some unwinding of speculative positions, which is resulting in softer prices. Zarbade added, “If this trend continues, then it will be a positive for the Indian economy and will help contain inflation. It might also attract FII flows given valuations have turned reasonable.”
Across Asia markets were trading mixed. Japanese stocks started the week lower, with strength in the yen and foreign selling weighing on the markets heavily. The Nikkei Stock Average fell 0.7% in early Monday trading but regained some of the lost ground later to trade flat with a negative bias at 9,517, down 0.05%. Shanghai Composite and Hang Seng were up 0.3% each.
Back in India among individual stocks, Unitech was down 0.2% at Rs 33 after fourth quarter net profit fell 19% to Rs 568 crore due to cost pressures. Mahindra & Mahindra was up 1.2% ahead of the fourth quarter results.
BSE Realty and Bankex were the top sectoral gainers, up 0.9% reach. From the realty pack, Sobha Developers gained 2%, DLF advanced 1.9% and Ackruti City surged 1.8%.
From the banking sector, ICICI Bank and Axis Bank up 1.2% and HDFC Bank gained 0.9%.
BSE Power index was the laggard in trade, up 0.3%. Lanco Infra declined 6.1%, Reliance Infra fell 0.7% and NHPFC was down 0.6%.
Among the heavyweights ICICI Bank (up 1.2%), HDFC (up 1.3%) and Reliance Industries (Up 0.5%) contributed 40 points to the Sensex. Only four components on the Sensex were trading in the red, Reliance Infra fell 0.7%, ITC was off 0.4%, Bharti Airtel declined 0.3% and Tata Steel fell 0.2%.
Market breadth was positive 1103 stocks advanced for 439 stocks which declined.