 "Markets open flat on weak Asian cues; Nifty hits 7,500")
Markets continue to trade firm supported by metal, energy and healthcare shares, however, the selling pressure in some of the banking shares and index heavy weights such as Infosys and TCS has capped the upside.
At 10:40 am, the S&P BSE Sensex was at 24,701, up by 55 points while Nifty50 was at 7,502, up 17 points.
The broader markets are trading in line with their larger peers with BSE Midcap and Smallcap indices up by 0.3% and 0.8% each.
Shares of metal companies continued their upward march for the eighth straight after surge in base metal prices.
Steel Authority of India (SAIL), NMDC and GMDC have rallied more than 5% each on the BSE. Hindustan Copper, Vedanta, National Aluminium, Tata Steel, Jindal Steel & Power (JSPL) and Hindustan Zinc were up 2%-5%.
Shares of Strides Shasun have surged nearly 4% to Rs 1,073 on the Bombay Stock Exchange after the company said it subsidiary plans to acquire three brands from Sweden-based Moberg Pharma.
The top gainers on the Sensex are Gail, Tata Motors, Lupin, ONGC, and Reliance Industries, up between 1% and 2.5% each.
The top losers on the Sensex are Infosys, TCS, ICICI Bank, SBI, and HUL, down between 1% and 2% each.
------------------------------------------
(updated 9:30am)
After an extended weekend, markets have opened the session on a flat note following weak cues from the Asian markets.
At 9:30 am, the S&P BSE Sensex was at 24,722, up by 76 points while Nifty50 was at 7,511, up 26 points.
The morning note by Angel Broking says, “At the current juncture, the Nifty is trading near its resistance of 7550. Considering multiple resistances, a minor pull back cannot be ruled out although the overall view remains positive. We advise traders not to get carried away in the anticipated corrective price action and suggest towards remaining light on positions until there is a decisive development on the charts.”
Going forward, “immediate resistance for index is placed at7550 – 7600 levels; whereas, support is visible at 7440 and7390 levels.”
Overseas, Japan's economy contracted less than estimated in the final quarter of 2015 but private consumption remained weak, underscoring the challenges in restoring growth amid intensifying overseas headwinds. At 9:15 am Indian Standard Time (IST) Nikkei 225 was trading 1.6% lower.
China’s foreign reserves have declined by about half a trillion dollars last year, marking its fourth consecutive month of decline. Shanghai Composite was trading 2.6% lower ahead of the February trade figures.
Foreign Institutional investors were net buyers in equities to the tune of Rs 672 crore on Friday, as per provisional stock exchange data.
In the commodity space, Brent crude hit a three-month high on Monday on an improving global outlook and stronger sentiment for a market recovery. Brent crude futures rose to as high as $41.04/barrel on Monday, extending their recovery from a 12-year trough of $27.10 hit in January. U.S. crude futures CLc1 also increased to $38.11/barrel, its highest since early January.
The Indian rupee opened weak against the greenback at 67.22, depreciating by 12 paise.
KEY STOCKS
Sectorally, BSE Metal index is rallying over 2% followed by Energy and Oil&Gas shares, up over 1%.
Individually, Maruti Suzuki will formally launch the Vitara Brezza on Tuesday, its first serious attempt to break into the already-competitive sport utility vehicle segment. The stock has gained 0.5%.
Metal pack has gained considering the rise in global commodity prices. Steel stocks are likely to be in focus after sharp rally in China steel prices. Tata Steel, Jindal Steel, JSWSteel, SAIL have all gained between 2%-6% each.
The sharp rally in oil prices has also aided the energy stocks. Cain India, ONGC, Reliance Industries have gained between 1% and 4% each.
Tata Motors has signed an agreement with Bharat Forge and General Dynamics Land Systems (GDLS) of the US, for the ministry of defence's (MoD’s) Future Infantry Combat Vehicle (FICV) programme. The stock has edged up nearly 1%.
Coal India is likely to firm after the board approved payment of interim dividend of Rs 27.40 per equity share for the financial year 2015-16. The stock has advanced 0.3%.
Among other prominent gainers, Lupin, BHEL, ITC, HDFC, L&T have gained between 1% and 3% each.
On the flip side, SBI, TCS, HUL, and ICICI Bank have dropped between 1% and 2% each.
Among other shares, Ajanta Pharma has gained 3% after the company said it has received US FDA Approval for Almotriptan Malate Tablets.
Strides Shasun jumped 3% after the company plans to acquire 3 brands of Moberg Pharma for US $10 million.
