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The markets have picked up pace on the first day of the new week after starting the proceedings on a tepid note, due to gains in the oil and gas space. The Sensex has bounced back more than 100 points from intra-day lows and is now at 22,501, stronger by 96 points and the Nifty is at 6717, up 21 points. The broader markets are also keeping pace; the midcap index is at 7384, higher by 26 points and the smallcap index is at 7548, up 16 points.
The benchmark indices had ended lower in the truncated last week on back of growth concerns and profit booking. The Sensex had lost 1.25% and the Nifty had lost 1.30% for the week ended May 02, 2014.
On the global front, Asian markets have bounced back after touching lower levels at opening bell in wake of weak manufacturing data from China and tensions in Ukraine. Hong Kong's Hang Seng is flat at 22,249, Shanghai Composite has shed 0.3% or 6.74 points at 2,019.62. Singapore's Straits Times is up 0.1% or 4.80 points at 3,257. Taiwan's Taiwan is up 0.10% or 8.96 points at 8,876. The Japanese and South Korean markets are shut for holidays.
US stocks had ended lower over the weekend despite encouraging jobs data as the rising geopolitical tensions in Ukraine weighed on investor sentiment. The Dow Jones ended down 0.2% at 16,512, the broader S&P 500 lost 0.1% at 1,881 and the Nasdaq ended down 0.1% at 4,123. In the U.S. this week, all eyes will be on Federal Reserve chair Janet Yellen as she testifies before the Joint Economic Committee and the Senate Budget Committee on Wednesday and Thursday respectively.
On the economic front, the rupee has opened with marginal gains of 7 paise at 60.09 per dollar versus 60.16 on Friday.
On the derivatives front, the India VIX has jumped by 6% at 37, which in turn has led to a spike in the options premiums, signalling that the markets are bracing for higher volatility as we head into the elections results scheduled to be announced towards the end of next week.
Oil and gas stocks are back in the reckoning this morning. RIL has jumped by 1.1% at Rs 939 to top the gainers list on the BSE, ONGC has gained 0.8% at Rs 332 and Gail India has added 0.7% at Rs 372. ITC has added 1.1% at Rs 344. Steel stocks are also seeing some buying interest after the corrective phase last wek, with Hindalco ading 0.3% at Rs 132 and Tata Steel inching higher by 0.3% at Rs 392.
On the other hand, BHEL has shed 0.9% at Rs 178 to top the losers list on the BSE. Auto stocks are also under duress, with Maruti Suzuki losing 0.4% at Rs 1877 and Tata Motors losing 0.3% at Rs 413. Tata Motors had reported weak April sales, with total sales declining 34% to 33,892 units.
Reliance Comm has declined 1.5% at Rs 120 after the company reported a PAT of Rs 156 crore up 44% in the fourth quarter compared to the third quarter. Revenue for the quarter was up 5% at Rs 5,671 crore compared to the third quarter.
The market breadth is positive. Out of 1036 stocks traded on the BSE, there are 566 advancing stocks as against 417 declines.
