 "Markets stable; Nifty holds 6700")
The markets are steadfast this morning, after the gyrations witnessed in the previous session, due to strength in the financial and IT space. The Sensex is at 22,470, higher by 54 points and the Nifty has managed to hold above the technically crucial level of 6700 and is now at 6709, up 12 points. The broader markets are also sailing smooth; the midcap index is at 7363, up 40 points and the smallcap index is at 7549, up 59 points.
The BSE Sensex had swung wildly in a range of about 400 points on Wednesday before ending with marginal losses, to make it four successive days of losses after being on a tear since the rally began in February.
In economy-related news, the rupee opened higher by 10 paise at 60.22 per dollar versus 60.32 on Wednesday. And Finance Minister P Chidambaram said that India's economy is likely to recover and achieve 6 percent growth in 2014-15 on the back of sound economic policies and a pick-up in investment.
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Financials and information technology stocks are going strong in today's session.
In the IT space, Infosys has jumped by 1.8% at Rs 3234 to top the gainers list on the BSE. TCS has climbed by 1.1% at Rs 2214 and Wipro has gained 0.8% at Rs 526. In the financials universe, HDFC has spiked up by 0.9% at Rs 905, ICICI Bank has added 1% at Rs 1258 and SBI has added 0.4% at Rs 2089. Index heavyweight RIL has pared its gains, but is still up 0.2% at Rs 937.
On the other hand, auto stocks have hit roadblocks post pathetic sales numbers from the likes of Maruti and M&M.
M&M has slid by 1.6% at Rs 1055 to top the loser's list on the BSE after its domestic sales dropped by 15% at 34,107 units as against 39,902 in the same month previous year.
Maruti Suzuki has weakened by 1% at Rs 1897 after reporting a 12.6% decline in its April sales during the month at 79,119 units. Sales of the company's bread and butter segment mini cars comprising M800, Alto, A-Star and WagonR declined by 25.4% to 26,043 units, while those of premium compact cars consisting of Swift, Estilo, Ritz rose by 9.9% to 23,659 units in April.
Hindalco Industries is under pressure with the CBI questioning former coal secretary PC Parakh for allegedly showing undue favours in allocating coal blocks to the company. The stock is at Rs 132, down 1.8%, on the BSE.
Oil and gas stocks are also under pressure, with Gail India losing 1% at Rs 365 and ONGC trading flat, with a negative bias, at Rs 325.
In stock-specific news, the country's largest two-wheeler maker Hero MotoCorp has strengthened by 0.4% at Rs 2203 after reporting a 14.41% increase in its total sales at 5,71,054 units in April 2014. The company had sold 4,99,113 units in the same month last year, Hero MotoCorp said in a statement.
Shriram City Union Finance has rallied 3.6% to 1,226 after reporting 20% year-on-year rise in consolidated net profit for the quarter ended March 31, 2014 at Rs 151 crore. The non-banking finance company (NBFC) had reported net profit of Rs 126 crore in the corresponding quarter of the previous fiscal.
Marico has surged 4.3% to Rs 212 after reporting a healthy 32% year-on-year (yoy) jump in consolidated operating profit at Rs 154 crore for the quarter ended March 31, 2014 (Q4). The operating profit margin (OPM) increased by 228 basis points yoy to 14.2% despite the steep increase in copra prices due to reduction in employee, advertisement and other expenses.
IDBI Bank has risen 3.3% to Rs 70.45 as the bank's gross non-performing assets declined to Rs 9960.16 crore as on 31 March 2014, from Rs 10012.44 crore as on 31 December 2013.
JSW Energy has declined by 2.2% at Rs 52 after net profit fell 47.98% to Rs 174.62 crore on 10.57% decline in total income to Rs 2113.03 crore in Q4 March 2014 over Q4 March 2013. Consolidated net profit fell 16.48% to Rs 754.74 crore on 2.62% decline in total income to Rs 8907.63 crore in the year ended March 2014 over the year ended March 2013.
The market breadth is strong. Out of 1911 stocks traded on the BSE, there are 1149 advancing stocks as against 669 declines.