 "Markets remain higher, IT & auto shares gain")
Benchmark indices continue to trade higher led by buying among software major TCS and auto shares.
By 10:30, the Sensex surged by 82 points at 20,211 whereas the Nifty gained by 16 points at 6,056 levels.
According to Mohit Gaba, independent technical analyst and trader, “The Nifty has continued its grind upward, it seems like we will expire above the 6000 mark. As for initiating fresh longs it’s not a smart thing to do as there are a lot of resistance zones above”.
On the global front, Japanese shares skidded from a two-month peak on Friday in a sudden reversal sparked by profit-taking ahead of a weekend election that should see Prime Minister Shinzo Abe gain control of the upper house of parliament.
There are worries that a big victory for Abe would allow him to prioritize nationalist policies at the expense of painful structural reform, though markets are hopeful such an outcome will not materialize.
Tokyo's Nikkei .N225 slid 1.1 percent, having swung from gains of more than 1% to a fall of 2.7%.
Back home, the rupee today lost 17 paise to 59.84 against the dollar in early trade at Interbank Foreign Exchange market due to increased demand for the US currency from importers.
Tata Consultancy Services (TCS) is trading higher by over 5% at Rs 1,746, also its record high on BSE, after reporting better- than-expected consolidated net profit at Rs 3,831 crore for the quarter ended June 30, 2013 (Q1 FY2014).
Analysts on an average had expected profit of Rs 3,739 crore from India’s largest software services company. The company had profit of Rs 3,616 crore in March quarter and Rs 3,317 crore in a year ago quarter.
Infosys and Wipro have gained between 1-2%.
Auto majors like Tata Motors, M&M and Hero Motors have risen between 1-2%.
On the losing side, BHEL, Sun Pharma, NTPC, Bajaj Auto, Tata Power, JSPL and Bharti Airtel have declined between 1-4%.
Nine drug makers, including Ranbaxy, Dr Reddy’s Labs, Glenmark, Cipla and Cadila Health, are likely to face a hefty penalty from the National Pharmaceutical Pricing Authority (NPPA) over allegedly selling anti-asthma drug Doxofylline without prior price approval.
The move comes in the wake of a recent Supreme Court order against the industry that brought the widely prescribed medicine under price control.
Among other shares, Bayer Cropscience is trading higher by 5% to Rs 1,735 after the agrochemicals manufacturer said that it is considering the buyback of its own shares from the public shareholders.
Container Corporation of India has rallied 6% to Rs 1,155 after the state-owned company said it will consider issuing free shares to its existing equity shareholders.
Gitanjali Gems is locked in lower circuit for 20 straight trading sessions, down 5% at Rs 110 after the market regulator Securities and Exchange Board of India (Sebi) and the bourses has suspended the trading activities of 26 entities, including the company’s promoter Mehul Choksi, and firms linked to Prime Broking, as part of a probe into suspected market manipulations.
The market breadth in BSE remains marginally positive with 892 shares advancing and 600 shares declining.
By 10:30, the Sensex surged by 82 points at 20,211 whereas the Nifty gained by 16 points at 6,056 levels.
According to Mohit Gaba, independent technical analyst and trader, “The Nifty has continued its grind upward, it seems like we will expire above the 6000 mark. As for initiating fresh longs it’s not a smart thing to do as there are a lot of resistance zones above”.
On the global front, Japanese shares skidded from a two-month peak on Friday in a sudden reversal sparked by profit-taking ahead of a weekend election that should see Prime Minister Shinzo Abe gain control of the upper house of parliament.
There are worries that a big victory for Abe would allow him to prioritize nationalist policies at the expense of painful structural reform, though markets are hopeful such an outcome will not materialize.
Tokyo's Nikkei .N225 slid 1.1 percent, having swung from gains of more than 1% to a fall of 2.7%.
Back home, the rupee today lost 17 paise to 59.84 against the dollar in early trade at Interbank Foreign Exchange market due to increased demand for the US currency from importers.
Prime Minister Manmohan Singh today said the Indian economy is going through a difficult period and the recent volatility in the forex market is a cause for concern.
The Prime Minister said that RBI steps are not meant to signal rise in long term interest rates and the central bank can consider revising steps once the rupee stabilises.
On the sectoral front, BSE IT index has spurted over 3% followed by counters like TECk, Auto and Metal, all gaining between 1-2%. However, BSE Power, Capital Goods, Consumer Durables and Bankex indices have declined by nearly 1% each.Tata Consultancy Services (TCS) is trading higher by over 5% at Rs 1,746, also its record high on BSE, after reporting better- than-expected consolidated net profit at Rs 3,831 crore for the quarter ended June 30, 2013 (Q1 FY2014).
Analysts on an average had expected profit of Rs 3,739 crore from India’s largest software services company. The company had profit of Rs 3,616 crore in March quarter and Rs 3,317 crore in a year ago quarter.
Infosys and Wipro have gained between 1-2%.
Auto majors like Tata Motors, M&M and Hero Motors have risen between 1-2%.
On the losing side, BHEL, Sun Pharma, NTPC, Bajaj Auto, Tata Power, JSPL and Bharti Airtel have declined between 1-4%.
Nine drug makers, including Ranbaxy, Dr Reddy’s Labs, Glenmark, Cipla and Cadila Health, are likely to face a hefty penalty from the National Pharmaceutical Pricing Authority (NPPA) over allegedly selling anti-asthma drug Doxofylline without prior price approval.
The move comes in the wake of a recent Supreme Court order against the industry that brought the widely prescribed medicine under price control.
Among other shares, Bayer Cropscience is trading higher by 5% to Rs 1,735 after the agrochemicals manufacturer said that it is considering the buyback of its own shares from the public shareholders.
Container Corporation of India has rallied 6% to Rs 1,155 after the state-owned company said it will consider issuing free shares to its existing equity shareholders.
Gitanjali Gems is locked in lower circuit for 20 straight trading sessions, down 5% at Rs 110 after the market regulator Securities and Exchange Board of India (Sebi) and the bourses has suspended the trading activities of 26 entities, including the company’s promoter Mehul Choksi, and firms linked to Prime Broking, as part of a probe into suspected market manipulations.
The market breadth in BSE remains marginally positive with 892 shares advancing and 600 shares declining.