 "Sensex trades flat with a positive bias; Power stocks tank")
Key Benchmark indices pared gains clocked in early trades in a volatile session, dragged down by information technology shares amid other heavyweights.
Key stock benchmark indices are now trading flat with a positive bias. Selling pressure has aggravated in TCS, Infosys and ITC shares.
At 1:05pm, the 30-share Sensex was up 41.25 points at 21,246.30 and the 50-share Nifty was up 10.45 points at 6,314.40.
TCS down 1.98%, Infosys down 0.37%, ITC down 0.36%, Bharti Airtel down 1.31%, and RIL down 0.30%, are the top Sensex losers at this hour.
The market sentiments was earlier boosted by data showing that foreign funds were net buyers of Indian stocks on Monday, 20 January 2014. Foreign institutional investors (FIIs) bought shares worth a net Rs 384.89 crore on Monday, as per provisional data from the stock exchanges.
On the global front, Asian markets crept higher on Tuesday as Japanese stocks rebounded and Chinese money rates eased, while the U.S. dollar got a fillip from a report the Federal Reserve would again trim its bond buying next week.
The dollar broke the early lethargy with a hop to 104.48 yen when the Wall Street Journal reported the Fed is on track to trim its bond-buying program for the second time in six weeks, paring back by $10 billion to $65 billion a month.
Back home, Ashok Leyland, Colgate-Palm, eClerx Services, Info Edg.(India), Kotak Mah. Bank, Thermax and Torrent Pharma will unveil the third quarter results today.
The rupee appreciated in morning trade due to dollar sale by exporters and bullish stock markets.
The rupee was trading at Rs 61.52 compared with previous close of Rs 61.62 per dollar.
Aping the Aam Aadmi Party (AAP) government in Delhi, the Congress-led Maharashtra government on Monday approved a 20 per cent cut in power tariff for all categories of consumers – domestic, agriculture and industry – of the state-run Maharashtra State Electricity Distribution Company (MahaVitaran).
Power Stocks
The decision is not applicable to Mumbai consumers who get power supply from private distribution companies – Tata Power, Reliance Infrastructure and BrihanMumbai Electric Supply & Transport.
The tariff cut will lead to an additional financial burden of Rs 706 crore a month on MahaVitaran. The state government will provide Rs 606 crore, while the balance Rs 100 crore will be shared by MahaVitaran and Maharashtra State Transmission Company (MahaTransco). The annual burden will be Rs 8,472 crore. This is in addition to the present annual subsidy of Rs 10,500 crore provided to agricultural consumers and Rs 1,100 crore to power looms. Of this, MahaVitaran cross-subsidises industry and commercial consumers worth Rs 6,500 crore; the balance is contributed by the state government.
Power stocks are currently under pressure; NTPC is down 1.18%, Tata Power 0.45%, Power Grid Corp down 0.71%. The BSE sectoral index tracking power stocks is down 0.46% in the day's trade and is also the top loser among BSE indices tracking various industrial sectors today.
Other sectors
On the sectoral front, BSE Auto index has surged by nearly 2% followed by counters like Banks, Capital Goods, Realty, Metal and Consumer Durables, all gaining by 1% each. However, BSE IT and TECk indices have declining by nearly 1% each.
Banks shares are leading the trend ahead of the RBI's policy on January 28. The central bank is widely expected to keep interest rates unchanged after inflation cooled last month.
The main gainers on the Sensex at this hour include ICICI Bank, Tata Motors, L&T, HDFC Bank and SBI all gaining between 1.3-2.3%.
Among other shares, HCL Technologies has gained by nearly 1% to Rs 1,444.50, after hitting a record high of Rs 1445 in intraday trade. The company's consolidated net profit rose 5.7% to Rs 1496 crore on 2.8% increase in revenue to Rs 8184 crore in Q2 December 2013 over Q1 September 2013.
Aurobindo Pharma is trading higher by 4% at Rs 426, extending its previous day’s rally, after the company has signed a binding offer to acquire the commercial operations, excluding the manufacturing assets, from Actavis in seven western European countries.
Asian Paints is trading lower by 3% at Rs 475 after reporting 1.8% year-on-year (yoy) decline in consolidated net profit at Rs 329 crore for the third quarter ended December 31, 2013 (Q3), due to higher raw material cost and other expenses.
Sasken Communication Technologies has surged 6% to Rs 208 after its board declared a special dividend of Rs 22.50 per share (225%), in celebration of its 25th year since incorporation.
The broader markets are outperforming the benchmark indices- BSE Midcap and Smallcap indices are up between 0.5-1%.
The market breadth in BSE remains positive with 1,156 shares advancing and 738 shares declining.
Key stock benchmark indices are now trading flat with a positive bias. Selling pressure has aggravated in TCS, Infosys and ITC shares.
At 1:05pm, the 30-share Sensex was up 41.25 points at 21,246.30 and the 50-share Nifty was up 10.45 points at 6,314.40.
Also Read
Devangshu Datta, independent technical analyst suggests Stop loss shorts to be kept at 6350 and stop loss long positions at 6275 and to wait for breakouts/ breakdowns.
TCS down 1.98%, Infosys down 0.37%, ITC down 0.36%, Bharti Airtel down 1.31%, and RIL down 0.30%, are the top Sensex losers at this hour.
The market sentiments was earlier boosted by data showing that foreign funds were net buyers of Indian stocks on Monday, 20 January 2014. Foreign institutional investors (FIIs) bought shares worth a net Rs 384.89 crore on Monday, as per provisional data from the stock exchanges.
On the global front, Asian markets crept higher on Tuesday as Japanese stocks rebounded and Chinese money rates eased, while the U.S. dollar got a fillip from a report the Federal Reserve would again trim its bond buying next week.
The dollar broke the early lethargy with a hop to 104.48 yen when the Wall Street Journal reported the Fed is on track to trim its bond-buying program for the second time in six weeks, paring back by $10 billion to $65 billion a month.
Back home, Ashok Leyland, Colgate-Palm, eClerx Services, Info Edg.(India), Kotak Mah. Bank, Thermax and Torrent Pharma will unveil the third quarter results today.
The rupee appreciated in morning trade due to dollar sale by exporters and bullish stock markets.
The rupee was trading at Rs 61.52 compared with previous close of Rs 61.62 per dollar.
Aping the Aam Aadmi Party (AAP) government in Delhi, the Congress-led Maharashtra government on Monday approved a 20 per cent cut in power tariff for all categories of consumers – domestic, agriculture and industry – of the state-run Maharashtra State Electricity Distribution Company (MahaVitaran).
Power Stocks
The decision is not applicable to Mumbai consumers who get power supply from private distribution companies – Tata Power, Reliance Infrastructure and BrihanMumbai Electric Supply & Transport.
The tariff cut will lead to an additional financial burden of Rs 706 crore a month on MahaVitaran. The state government will provide Rs 606 crore, while the balance Rs 100 crore will be shared by MahaVitaran and Maharashtra State Transmission Company (MahaTransco). The annual burden will be Rs 8,472 crore. This is in addition to the present annual subsidy of Rs 10,500 crore provided to agricultural consumers and Rs 1,100 crore to power looms. Of this, MahaVitaran cross-subsidises industry and commercial consumers worth Rs 6,500 crore; the balance is contributed by the state government.
Power stocks are currently under pressure; NTPC is down 1.18%, Tata Power 0.45%, Power Grid Corp down 0.71%. The BSE sectoral index tracking power stocks is down 0.46% in the day's trade and is also the top loser among BSE indices tracking various industrial sectors today.
Other sectors
On the sectoral front, BSE Auto index has surged by nearly 2% followed by counters like Banks, Capital Goods, Realty, Metal and Consumer Durables, all gaining by 1% each. However, BSE IT and TECk indices have declining by nearly 1% each.
Banks shares are leading the trend ahead of the RBI's policy on January 28. The central bank is widely expected to keep interest rates unchanged after inflation cooled last month.
The main gainers on the Sensex at this hour include ICICI Bank, Tata Motors, L&T, HDFC Bank and SBI all gaining between 1.3-2.3%.
Among other shares, HCL Technologies has gained by nearly 1% to Rs 1,444.50, after hitting a record high of Rs 1445 in intraday trade. The company's consolidated net profit rose 5.7% to Rs 1496 crore on 2.8% increase in revenue to Rs 8184 crore in Q2 December 2013 over Q1 September 2013.
Aurobindo Pharma is trading higher by 4% at Rs 426, extending its previous day’s rally, after the company has signed a binding offer to acquire the commercial operations, excluding the manufacturing assets, from Actavis in seven western European countries.
Asian Paints is trading lower by 3% at Rs 475 after reporting 1.8% year-on-year (yoy) decline in consolidated net profit at Rs 329 crore for the third quarter ended December 31, 2013 (Q3), due to higher raw material cost and other expenses.
Sasken Communication Technologies has surged 6% to Rs 208 after its board declared a special dividend of Rs 22.50 per share (225%), in celebration of its 25th year since incorporation.
The broader markets are outperforming the benchmark indices- BSE Midcap and Smallcap indices are up between 0.5-1%.
The market breadth in BSE remains positive with 1,156 shares advancing and 738 shares declining.