 "Sensex, Nifty outperform global peers; Nifty holds 7,900")
Markets ended flat amid choppy trades shrugging off weak global cues with the benchmark Nifty rising 5% in the past six consecutive trading sessions.
Profit-booking in IT shares and weakness in auto, banks and select index heavyweight stocks dragged the markets. However, strong buying among metal shares helped the markets to end marginally positive.
The S&P BSE Sensex was ended up 28 points at 25,844 and the Nifty50 ended flat at 7,915. In the broader market, BSE Midcap index performed in line with the front-liners with a gain of 0.1% while BSE Smallcap index outperformed by 0.6% rise.
“Nifty50 rallied by 5% in six trading sessions, therefore, profit booking can be seen at higher levels. The index is nearing major resistance area of 7,980 which is almost double top before, breaking which would open 8,200-8,250 on higher side. Investors need to be stock-specific and invest where growth corporate earnings is visible. IT pack would perform well in the fourth quarter earnings and pharma space should be avoided. US Presidential Election and fourth quarter earnings will dictate the trends of markets” adds A K Prabhakar, head of research, IDBI Capital.
In the currency front, the rupee strengthened by 30 paise to 66.25 against the US dollar at the Inter-bank Foreign Exchange on increased selling of American currency by exporters.
Besides, India's trade deficit narrowed for the third straight month in March to $5.07 billion, the lowest in five years, as imports shrank at a faster pace than exports, data showed on Monday.
Meanwhile, RBI Governor Raghuram Rajan said that the central bank will continue to use currency intervention to reduce volatility in the country's exchange rates. Rajan also said that he was closely watching inflation developments as well as monsoon rain forecasts in terms of impact on monetary policy.
Among overseas markets, stocks fell around the world on Wednesday as the price of crude declined after a strike by Kuwaiti oil workers ended.
Brent and US crude oil futures prices dropped as worries about oversupply in the oil market returned to the fore.
STOCKS IN ACTION
Shares of metal companies ended higher on the bourses on expectation of improvement in earnings and margins on a sequential basis for the quarter ended March 2016 (Q4FY16).
Vedanta, Jindal Steel & Power, Hindustan Zinc, Tata Steel and Hindalco surged between 3%-7%.
Tata Consultancy Services (TCS) dipped around 3% after the company reported a lower-than-expected operating profit margin for the quarter ended March 2016 (Q4FY16).
Wipro moved higher by over 2% ahead of January-March (Q4) quarter results today. The board will also consider a proposal for buyback of equity shares of the company.
Reliance Industries slipped over 2% ahead of its March quarter earnings due on Friday.
Shares of HDFC rose by nearly 1% after its subsidiary HDFC Standard Life announced plans to launch its initial public offer (IPO) in which the company would sell 10% stake.
Sugar companies ended lower after media reports stated that the government mulling to control sugar prices rise. Shree Renuka Sugars, EID Parry India Ltd, Bajaj Hindusthan Sugar, Balrampur Chini Mills, Dhampur Sugar Mills, Triveni Engineering and Industries and Mawana Sugars cracked up to 5%.
Supreme Petrochem moved higher by 7%, after the company reported nearly three-fold jump in its standalone net profit at Rs 54.34 crore for the fourth quarter ended March 2016 (Q4FY16) on back strong operational income.
Steel Strips Wheel (SSWL) surged 4% after the auto parts & equipment makers announced that it has received exports order for supply of high speed trailer (Caravan) steel wheels for the European trailer market.
CRISIL rallied 8.5% after the ratings agency reported 40% year on year (YoY) jump in its consolidated net profit at Rs 78.60 crore for the first quarter (Q1) ended March 31, 2016.
Profit-booking in IT shares and weakness in auto, banks and select index heavyweight stocks dragged the markets. However, strong buying among metal shares helped the markets to end marginally positive.
Read more from our special coverage on "MARKETS"
The S&P BSE Sensex was ended up 28 points at 25,844 and the Nifty50 ended flat at 7,915. In the broader market, BSE Midcap index performed in line with the front-liners with a gain of 0.1% while BSE Smallcap index outperformed by 0.6% rise.
“Nifty50 rallied by 5% in six trading sessions, therefore, profit booking can be seen at higher levels. The index is nearing major resistance area of 7,980 which is almost double top before, breaking which would open 8,200-8,250 on higher side. Investors need to be stock-specific and invest where growth corporate earnings is visible. IT pack would perform well in the fourth quarter earnings and pharma space should be avoided. US Presidential Election and fourth quarter earnings will dictate the trends of markets” adds A K Prabhakar, head of research, IDBI Capital.
In the currency front, the rupee strengthened by 30 paise to 66.25 against the US dollar at the Inter-bank Foreign Exchange on increased selling of American currency by exporters.
Besides, India's trade deficit narrowed for the third straight month in March to $5.07 billion, the lowest in five years, as imports shrank at a faster pace than exports, data showed on Monday.
Meanwhile, RBI Governor Raghuram Rajan said that the central bank will continue to use currency intervention to reduce volatility in the country's exchange rates. Rajan also said that he was closely watching inflation developments as well as monsoon rain forecasts in terms of impact on monetary policy.
Among overseas markets, stocks fell around the world on Wednesday as the price of crude declined after a strike by Kuwaiti oil workers ended.
Brent and US crude oil futures prices dropped as worries about oversupply in the oil market returned to the fore.
STOCKS IN ACTION
Shares of metal companies ended higher on the bourses on expectation of improvement in earnings and margins on a sequential basis for the quarter ended March 2016 (Q4FY16).
Vedanta, Jindal Steel & Power, Hindustan Zinc, Tata Steel and Hindalco surged between 3%-7%.
Tata Consultancy Services (TCS) dipped around 3% after the company reported a lower-than-expected operating profit margin for the quarter ended March 2016 (Q4FY16).
Wipro moved higher by over 2% ahead of January-March (Q4) quarter results today. The board will also consider a proposal for buyback of equity shares of the company.
Reliance Industries slipped over 2% ahead of its March quarter earnings due on Friday.
Shares of HDFC rose by nearly 1% after its subsidiary HDFC Standard Life announced plans to launch its initial public offer (IPO) in which the company would sell 10% stake.
Sugar companies ended lower after media reports stated that the government mulling to control sugar prices rise. Shree Renuka Sugars, EID Parry India Ltd, Bajaj Hindusthan Sugar, Balrampur Chini Mills, Dhampur Sugar Mills, Triveni Engineering and Industries and Mawana Sugars cracked up to 5%.
Supreme Petrochem moved higher by 7%, after the company reported nearly three-fold jump in its standalone net profit at Rs 54.34 crore for the fourth quarter ended March 2016 (Q4FY16) on back strong operational income.
Steel Strips Wheel (SSWL) surged 4% after the auto parts & equipment makers announced that it has received exports order for supply of high speed trailer (Caravan) steel wheels for the European trailer market.
CRISIL rallied 8.5% after the ratings agency reported 40% year on year (YoY) jump in its consolidated net profit at Rs 78.60 crore for the first quarter (Q1) ended March 31, 2016.