Sensex gains 200 points led by metal, auto; Hindalco up 4%

After a weak start, markets have recouped its early losses and are trading firm in the positive territory owing to strength in the shares of metal, auto and banks despite weak earnings posted by the prominent companies and weakness in the global peers.

At 10.30 AM, the 30-share Sensex is up 221 points at 28,449 and the 50-share Nifty has climbed 63 points at 8,589.

In the broader market, both the BSE Midcap and Smallcap indices are in line with the large counter parts and  are up 1% each.

Market breadth in BSE is positive with 1,433 advances against 572 declines.

Meanwhile, foreign portfolio investors continued to remain sellers in Indian equities with net sale of Rs 660.30 crore on Friday, as per provisional data. 

Counting of ballots for the bitterly-fought Delhi Assembly polls, seen as having significance beyond borders of the capital, began this morning amid tight security.

The electoral fate of former Chief Minister Arvind Kejriwal, his challengers from BJP Kiran Bedi and Congress' Ajay Maken and 670 other candidates will be known today.

Counting of votes is taking place simultaneously at 14 Centres across the city.

The government on Monday estimated India’s economic growth this financial year at 7.4%, against 6.9% in 2013-14, as the country changed its definition of gross domestic product (GDP) and the base year for calculating it. The estimated growth for 2014-15 is the same as China’s growth for 2014. Earlier, both the International Monetary Fund and the World Bank had said India’s growth would exceed China’s by 2016-17. Capital Goods and Power shares will be in focus.

SECTORS & STOCKS:

On the sectoral front, 10 out of 12 sectoral indices are trading in the positive territory. BSE Metal and Bankex are up 1.5% each followed by BSE Auto, Consumer Durables and Power indices trading higher up to 15. However, BSE Teck and IT are trading with marginal losses. 

Hindalco, whose European subsidiary Novalis reported a rise in profits, is the top gainer on the BSE and is up 4%. Tata Steel,  Sesa Sterlite and Coal India are up between 0.5-3.6%.

Recently beaten stocks including Tata motors, Tata Steel and BHEL are trading higher in today’s trade and are up over 1.55 each.

ICICI Bank, the largest private sector lender in the country, has initiated the process of repatriating capital from its Canadian arm for the second time in as many years. The stock is up 1.5%. 

Private sector lender Axis Bank today said it will seek shareholders' approval for raising up to Rs 15,000 crore by issuing long-term bonds or non-convertible debentures to select investors in the domestic market. The stock is up 2% 

The Government has announced infusing Rs 6,900 crore in nine public sector banks. The key point is that this additional capital has been given on the basis of new criteria that comprise of efficiency parameters. The stock has climbed 2%.

Cipla, BHEL, Hindalco, Coal India, M&M and SBI are due to release their quarterly results later during the week and trading higher in today’s trade and have gained between 0.5-4%.

NTPC BHEL Power Projects Private Limited (NBPPL) today signed a memorandum of understanding (MoU) with APGenco for supply of spare parts for coal and ash handling plants and other equipment required by the Andhra Pradesh power utility’s thermal power plants. NTPC is up 0.7% and BHEL has climbed over 2%.

On the flip side, power stocks are reeling under pressure. Tata Power is trading with marginal gains on fears that AAP party would conduct inspection of books if it comes to power in Delhi.

Shares of L&T are trading lower by 0.6% on dismal Q3 results.

Shares of the technology pack are reeling under pressure in today’s trade on account of profit booking. Wipro and TCS are down between 0.3-0.5%.

Shares of Adani Enterprises is trading higher by 4% at Rs 631 on the NSE after the company said it has signed a pact with the Rajasthan government to develop the country's largest solar park in the state with 10,000 mega watt (MW) capacity.

The country’s largest real estate firm, DLF dipped by over 3% at Rs 152 on the BSE (Bombay Stock Exchange) after posting a 9% decline in its consolidated net profit to Rs 132 crore for the quarter ended December, owing to low sales and higher finance cost.

JK Tyre and Industries has surged over 10% at Rs 116 on the NSE after reporting a 55.53% increase in consolidated net profit at Rs 91.81 crore for the third quarter ended December 31, 2014.