Markets remain flat, Banks surge

BSE Auto and Bankex indices surge 2%

Markets continue to remain flat with the Sensex and the Nifty hovering around 17,400 mark and 5,300 levels, respectively. Markets made weak opening post huge losses in Infosys following disappointing results by the IT bellweather for FY13.

As trading progressed, markets recovered led by gains in index heavyweight Reliance and banking shares. By 1130 Sensex was up 57 points at 17,390 and the 50-share Nifty gained 25 points at 5,302.

On the global front, Asian markets are trading fir with Nikkei, Strait Times, Hang Seng, Taiwan and Kospi gaining between 1-2%.

Back home, The BSE IT index has extended the losses and has plunged over 6%. Infosys has tanked 10% at Rs 2,463 after earnings before interest and tax (EBIT) margin dropped at 29.9% in the fourth quarter of FY12 as against 31.17% in the previous quarter.

While announcing the Q4 results S. D. Shibulal, CEO and Managing Director of Infosys said that the year ahead looks challenging for the IT services industry, with slow recovery in the global markets.

Among other individual stocks, TCS has slipped 5% at Rs 1,071, followed by Wipro (down 4%) and HCL Technologies (down 3%) on the BSE.

However, other sectoral indices which have gained in today’s trade are Auto, Banks, Healthcare and Capital Goods, all surging by almost 2% each. Counters like FMCG, Power, Metal, Realty, Oil & Gas, PSU and Consumer Durable have gained by nearly 1% each.

Rate sensitive shares from the bank and auto space gained on hopes of a rate cut by the central bank next week.

Banking stocks like ICICI Bank, SBI and HDFC Bank have gained between 1-2%.

From the Auto pack, Tata Motors is the top Sensex gainer, up nearly 3%. Bajaj Auto, Hero MotoCorp, Maruti Suzuki and M&M have gained between 1-3%.

In the Capital Goods segment, L&T and BHEL are up between 1-2% after February IIP data released Thursday showed that the capital goods segment showed a growth of 10%.

FMCG majors ITC and HUL are up 1-2% each ahead of the inflation data later today on hopes that inflation would ease further.

The broader indices are trading firm as compared to benchmarks – BSE Midcap and Smallcap indices are up 1% each.

TD Power Systems has surged 11% to Rs 325, its highest level since listing on November 2011 on the National Stock Exchange.

The market breadth remains firm with 1,532 advancing and 787 shares declining.