 "Nifty ends above 7,750 amid choppy trades; all eyes on RBI policy")
Benchmark share indices ended near their day's high, amid a choppy trading session, led by auto shares post their robust March sales and information technology majors. Further, investors are keenly awaiting the outcome of the Reserve Bank of India’s (RBI) monetary policy review tomorrow.
The 30-share S&P BSE Sensex ended up 130 points at 25,400 and the Nifty50 rose 46 points to close at 7,759. Among broader markets, BSE Midcap and Smallcap indices inched up between 0.2%-0.4%.
“Markets are witnessing loss of momentum at the current juncture. It’s therefore time for correction to begin. The swift rise from 6,850 levels piercing important resistance levels on the upside would now need some time to consolidate before the next leg of up move to begin. Strong support exists at 7,400 Nifty50 levels and on the upper side there is strong resistance at 7,800 Nifty 50 levels. Buy on dips should be the strategy for the traders”, said Jimeet Modi, CEO, SAMCO Securities.
Besides, India's manufacturing growth registered an uptick in March mainly due to rise in new orders after remaining unchanged in February. The Nikkei purchasing managers’ index (PMI) survey showed manufacturing at an eight month high of 52.4 after the 51.1 points reading in February. This is a third consecutive monthly improvement in business conditions across the sector.
In the currency front, the rupee was trading a tad strong at 66.23 as the dollar was on the defensive, after Friday’s firm US jobs report failed to shift the broadly held view that the Federal Reserve will remain cautious on interest rate hikes this year.
Crude prices extended losses in Asia on Monday after comments by Saudi Arabia cast doubt whether key producers meeting next month would reach an agreement to freeze output to address a global supply glut.
Meanwhile, foreign portfolio investors (FPIs) bought shares worth a net Rs 214 crore on Friday, as per provisional data released by the stock exchanges.
Among overseas markets, European shares fell to near a one-month low on Monday, with telecom shares slumping after talks between Orange and Bouygues on a deal to create a dominant French telecoms operator collapsed. CAC, DAX and FTSE were down 0.5%-1%.
Asian share prices held firm on Monday after solid US payroll data underpinned investor risk sentiment while last week's dovish comments from Federal Reserve Chair Janet Yellen kept the US dollar in check. Strait Times and Kospi gained between 0.3%-0.6%. Japan's Nikkei fell 0.3%, led by fall in automakers following poor US sales figures.
Back home, financial shares were mostly weak in trades today ahead of the RBI policy meet tomorrow. Axis Bank, SBI, HDFC and ICICI Bank were down between 0.2%-1%.
Shares of ITC were down 1.7% at Rs 330 on the BSE after the company announced the closure of its cigarette factories with effect from April 1, 2016 until clarity emerges in the current uncertain state of the rules on health warning.
Adani Enterprises was granted approval by Australia's Queensland state government on Sunday to proceed with its proposed $7.7 billion Carmichael coal project in the Galilee Basin. Adani Enterprises surged almost 6%. However, Adani Ports ended marginally lower.
Auto stocks displayed some rally on account of robust sales in March. M&M, Tata Motors, Bajaj Auto and Hero Moto gained between 1%-4%.
IT major Infosys moved higher to its record high of Rs 1,237 on the NSE ahead of the January-March (Q4) quarter results next week.
Shares of DLF, Indiabulls group firms and Apollo Tyres Monday plunged by up to 4% on reports of leaked documents naming their promoters having associations with firms in tax havens.
Mphasis were down nearly 3% after Blackstone Capital Partners made an open offer to public equity shareholders of the company at Rs 457.54 per share, which is a discount to Friday's closing price of Rs 467.40.
Geometric surged 19%, also its fresh record high on the BSE after HCL Technologies agreed to buy all of the business done by software firm, except a joint venture the latter has with Dassault Systèmes SA, in a share-swap deal valued at $190 million.
GM Breweries rallied over 11% on back of heavy volumes ahead of its fourth quarter (January-March 2016) results tomorrow.
Shares of Infibeam Incorporation debuted on the stock exchanges on Monday and listed at Rs 458 on BSE, a premium of 6% over its issue price of Rs 432.
Wabco India was down 6% after the company said that it would have to incur a higher royalty payment.
Gallantt Ispat moved higher to hit its lifetime high of Rs 546 ahead of the board meeting tomorrow to consider expansion of units of the company.
With Reuters input
The 30-share S&P BSE Sensex ended up 130 points at 25,400 and the Nifty50 rose 46 points to close at 7,759. Among broader markets, BSE Midcap and Smallcap indices inched up between 0.2%-0.4%.
Read more from our special coverage on "MARKETS"
“Markets are witnessing loss of momentum at the current juncture. It’s therefore time for correction to begin. The swift rise from 6,850 levels piercing important resistance levels on the upside would now need some time to consolidate before the next leg of up move to begin. Strong support exists at 7,400 Nifty50 levels and on the upper side there is strong resistance at 7,800 Nifty 50 levels. Buy on dips should be the strategy for the traders”, said Jimeet Modi, CEO, SAMCO Securities.
Besides, India's manufacturing growth registered an uptick in March mainly due to rise in new orders after remaining unchanged in February. The Nikkei purchasing managers’ index (PMI) survey showed manufacturing at an eight month high of 52.4 after the 51.1 points reading in February. This is a third consecutive monthly improvement in business conditions across the sector.
In the currency front, the rupee was trading a tad strong at 66.23 as the dollar was on the defensive, after Friday’s firm US jobs report failed to shift the broadly held view that the Federal Reserve will remain cautious on interest rate hikes this year.
Crude prices extended losses in Asia on Monday after comments by Saudi Arabia cast doubt whether key producers meeting next month would reach an agreement to freeze output to address a global supply glut.
Meanwhile, foreign portfolio investors (FPIs) bought shares worth a net Rs 214 crore on Friday, as per provisional data released by the stock exchanges.
Among overseas markets, European shares fell to near a one-month low on Monday, with telecom shares slumping after talks between Orange and Bouygues on a deal to create a dominant French telecoms operator collapsed. CAC, DAX and FTSE were down 0.5%-1%.
Asian share prices held firm on Monday after solid US payroll data underpinned investor risk sentiment while last week's dovish comments from Federal Reserve Chair Janet Yellen kept the US dollar in check. Strait Times and Kospi gained between 0.3%-0.6%. Japan's Nikkei fell 0.3%, led by fall in automakers following poor US sales figures.
Back home, financial shares were mostly weak in trades today ahead of the RBI policy meet tomorrow. Axis Bank, SBI, HDFC and ICICI Bank were down between 0.2%-1%.
Shares of ITC were down 1.7% at Rs 330 on the BSE after the company announced the closure of its cigarette factories with effect from April 1, 2016 until clarity emerges in the current uncertain state of the rules on health warning.
Adani Enterprises was granted approval by Australia's Queensland state government on Sunday to proceed with its proposed $7.7 billion Carmichael coal project in the Galilee Basin. Adani Enterprises surged almost 6%. However, Adani Ports ended marginally lower.
Auto stocks displayed some rally on account of robust sales in March. M&M, Tata Motors, Bajaj Auto and Hero Moto gained between 1%-4%.
IT major Infosys moved higher to its record high of Rs 1,237 on the NSE ahead of the January-March (Q4) quarter results next week.
Shares of DLF, Indiabulls group firms and Apollo Tyres Monday plunged by up to 4% on reports of leaked documents naming their promoters having associations with firms in tax havens.
Mphasis were down nearly 3% after Blackstone Capital Partners made an open offer to public equity shareholders of the company at Rs 457.54 per share, which is a discount to Friday's closing price of Rs 467.40.
Geometric surged 19%, also its fresh record high on the BSE after HCL Technologies agreed to buy all of the business done by software firm, except a joint venture the latter has with Dassault Systèmes SA, in a share-swap deal valued at $190 million.
GM Breweries rallied over 11% on back of heavy volumes ahead of its fourth quarter (January-March 2016) results tomorrow.
Shares of Infibeam Incorporation debuted on the stock exchanges on Monday and listed at Rs 458 on BSE, a premium of 6% over its issue price of Rs 432.
Wabco India was down 6% after the company said that it would have to incur a higher royalty payment.
Gallantt Ispat moved higher to hit its lifetime high of Rs 546 ahead of the board meeting tomorrow to consider expansion of units of the company.
With Reuters input