 "Mid, small-caps shine; Nifty holds 7,450")
Markets have trimmed gains but continue to remain firm with Nifty holding onto the 7,450 mark as some of the prominent stocks came under the selling pressure with Axis Bank declining nearly 1.5% after the company said 1.5% of bank exposure to leveraged groups has been classified as non-performing assets.
Meanwhile, ITC is contributing to the losses after posting lower than expected Q3 results.
Meanwhile, ITC is contributing to the losses after posting lower than expected Q3 results.
At 11:55 am, the S&P BSE Sensex is up 125 points at 24,561 and the Nifty50 has climbed 35 points to quote at 7,457. In the broader market, BSE Midcap and Smallcap indices have outperformed the larger peer and are up 1% and 1.5% each.
Top 5 losers on the Sensex include Hero Motocorp, GAIL, L&T and Wipro down between 0.7%-2.5%. On the other hand, Sun Pharma, ICICI Bank, HDFC, Coal India and TATA Steel are the top 5 gainers in the 30-pack Sensex and have surged between 1.5%-2.6%.
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(updated at 9:45 am)Markets started the truncated week on a higher note tracking strength in the global equities after European Central Bank indicated further monetary easing, increasing prospects that other central banks, such as the Bank of Japan (BOJ), may follow the path. Meanwhile, a rebound in crude oil prices further improved the sentiments.
The Indian markets will remain closed on Tuesday, January 26, 2016 on account of Republic Day.
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At 9:45 am, the S&P BSE Sensex is up 208 points at 24,644 and the Nifty50 has climbed 61 points to quote at 7,484.
Prominent companies from the Sensex pack such as HDFC twins, Maruti Suzuki, ICICI Bank, Bharti Airtel, NTPC, and L&T will announce their December quarter results during the week.
Among key events, monetary policy meet of the Federal Open Market Committee (FOMC) and the Bank of Japan will be held this week.
GLOBAL MARKETS
Asian markets edged higher on Monday tracking sharp gains on Wall Street on Friday while the uptick in global crude oil prices amid the harsh weather conditions in the U.S. East coast. Further, investors will also await the decision by the Bank of Japan from its two-day meet which begins on Thursday, January 28. Nikkei was up 1.4% while Shanghai Composite was up 0.7%. Among others, Hang Seng was up 1.8% and Straits Times rose 1.5%.
US stocks ended higher on Friday with the Nasdaq and S&P 500 gaining over 2% each after crude oil prices prices rebounded amid expectations of demand because of the severe cold weather conditions in US and Europe. Further, US existing-home sales surged 14.7% to a seasonally adjusted annual rate of 5.46 million units in December compared with 4.76 million in the previous month, as per the data released by the National Association of Realtors. The Dow Jones industrial average ended up 1.3% at 16,094, while the broader S&P 500 closed 2% higher at 1,907 and the tech-laden Nasdaq ended up 2.7% at 4,591.
RESULT REACTION
A lot of stocks specific action is witnessed as the earning season continue. Some of the notable stocks include FMCG major ITC is trading nearly 0.5% lower after posting a 0.6% year-on-year (YoY) growth in net profit at Rs 2,652 crore on Friday, which was below the street expectations.
Meanwhile, Cairn India’s net profit dropped to Rs 9 crore in Q3, 99% lower than the corresponding period last year on account of lower revenue and higher operating costs. However, the stock has managed to gain 2%.
Reliance Communications reported a 15% year-on-year drop in its net profits for the quarter ended December after losing 2G mobile service licences in five circles in 2015 The stok is trading marginally higher..
Mahindra Holidays & Resorts India surged over 2.45 after reporting 33% increase in net profit at Rs 31.26 crore for the third quarter ended December.
Persistent Systems posted better than expected number for the quarter ended December 2015 with sales of Rs 592.07 crores a growth of 9.1% sequentially and 19.7% year-on-year. The stock is up 6%.
Dairy firm Kwality on Saturday reported a 3.5% increase in its net profit at Rs 37.40 crore for the quarter ended December 31, 2015. The stock has risen 4%.
Budget airline SpiceJet on Friday reported a net profit of Rs 238.40 crore for the three-month period ended December 2015, staying profitable for the fourth straight quarter mainly aided by lower fuel costs. The stock has jumped 7%.
KEY STOCKS
Commodity based stocks are gaining across the bourses after the commodity prices saw a rebound. Tata Steel, Vedanta, Hindalco, have gained up to 2.5%.
Banks have gained as investors redirect to the prominent bluechips at reasonable and attractive valuations. SBI, ICICI Bank, Axis Bank and HDFC twins trading higher between 0.2%-2%. HDFC Bank is scheduled to post its Q3 numbers later today.
Cipla completed selling its entire holding in Hong Kong-based Biomab Holding to Biomab Brilliant for $ 2.5 million. The company on January 22, 2016 completed the transfer formalities in relation to the divestment of its entire 25 per cent stake held in Biomab Holding Limited, Hong Kong, Cipla said in a BSE filing. The stock has climbed 0.6%.
Oil explorations majors are trading higher as the crude prices witnessed recovery. ONGC and RIL have gained 2% and 1% each.
Some of the notable gainers include BHEL, M&M, Tata Motors, Sun Pharma and Maruti Suzuki trading higher between 1%-2.5%. On the flip side, Bharti Airtel, Wipro, ITC and Hero Motocorp have lost between 0.5%-1.5%.