 "Markets retreat as ITC slumps 1.5%")
Markets have trimmed gains with Nifty holding on to the 7,720 levels with ITC weighing on the Indices after the company said that it has been compelled to shut its cigarette factories with effect from 1 April 2016 until clarity emerges in the current uncertain state of the rules on health warning.
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At 10:45 am, the S&P BSE Sensex has surged 32 points to quote at 25,302 and the Nifty50 has gained 14 points to trade at 7,727.
Rupee depreciated by 10 paise to 66.36 against the US currency in early trade today at the Interbank Foreign Exchange due to increased demand for the dollar from importers.
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Top 5 losers in the Sensex include ITC, Lupin, ONGC, Caol India and Axis Bank down between 0.5%-1.6%.
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(updated at 9:33 am)_________________
Markets have opened the session on a firm note mirroring gains in the Asian peers. Meanwhile, caution is likely to prevail on the bourses later during the day as investors patiently wait for the RBI monetary policy review due tomorrow.
At 9:33 am, the S&P BSE Sensex has surged 111 points to quote at 25,381 and the Nifty50 has gained 34 points to trade at 7,747.
“Though the price moves look likely completing a flag pattern which usually is followed by sustained rallies, the performance at key levels in the last week is suggestive that a bullish continuation pattern is less likely to mature, and instead, a volatile price range is again likely to prevail, which if sustains, Nifty could challenge the key break out level of 7,600. Alternatively, if 7,600 is able to hold such bearish attacks, and if a direct rise above 7,830 is expect, 8,100-8,300 could be in sight,” according to GeoJit technical reports.
Foreign institutional investors were net buyers in equities to the tune of Rs 214 crore on Friday, as per provisional stock exchange.
GLOBAL MARKET
Most Asian stocks were trading with marginal gains tracking gains on Wall Street over the week-end. Japanese benchmark index, the Nikkei was up 0.2%, Singapore's Straits Times was up 0.5% and China's benchmark Shanghai Composite was up 0.2%.
US stocks ended higher on Friday on the back of higher than expected non-farm payrolls data. Non-farm payroll rose 215,000 in March 2016, according to a release by the US Labour Department on Friday. The Dow Jones industrial average was up 0.6% at 17,793, the S&P 500 gained 0.6% to close at 2,073 and the tech-heavy Nasdaq settled 0.9% higher at 4,915.
STOCK TRENDS
Auto stocks are displaying a spectacular rally on account of robust sales in March. In the auto pack, Tata Motors, Hero Motocorp, TVS Motors, Maruti Suzuki, Bajaj Auto and M&M up between 0.5%-1.5%.
In the auto semgent, Hero MotoCorp is likely to gain on the back of 14% growth year-on-year. TVS Motor which recorded 10% growth in March sales while Tata Motors may firm up on the back of strong growth in the commercial vehicles segment and higher US JLR sales.
In the auto semgent, Hero MotoCorp is likely to gain on the back of 14% growth year-on-year. TVS Motor which recorded 10% growth in March sales while Tata Motors may firm up on the back of strong growth in the commercial vehicles segment and higher US JLR sales.
HCL Technologie will acquire Mumbai- based engineering services company Geometric for Rs 1,283 crore ($188 million) in a share-swap deal. HCL Tech is up 0.5% while Geometric has zoomed 15%.
Meanwhile, IT major Infosys co-founder NS Raghavan along with wife Jamuna Raghavan have acquired shares worth Rs 94.56 crore of the company via an open market transaction. The stock is trading 1.5% higher.
Another stock that is witnessing buying is MOIL up 7% after the company raised prices of ores and fines by 10%-50%. From the same family, JSW Steel has gained 0.4% on recording highest ever monthly crude steel production in March 2016.
SAIL and Tata Steel are up 1.5% each. Fitch Ratings downgraded SAIL’s major's long-term foreign currency issuer default rating (IDR) to 'BB'from 'BBB-'. Fitch Ratings on Friday downgraded Tata Steel and its long-term foreign currency issuer default rating to 'BB' from 'BB+/stable'. The downgrade was on Tata Steel and Tata Steel UK, the rating agency said in a late evening note.
On the flip side, Wabco India has lost 7% on the back on increase in royalty payment by the parent. The company entered into an agreement with M/s WABCO Europe BVBA, a related party for payment of royalty at the rate of 4% on the net sales for using the licensed intangibles and technical knowhow.
Also, ITC is down 2% after the company said it has been compelled to shut its cigarette factories with effect from April 01, 2016 until clarity emerges in the current uncertain state of the rules on health warning.