Markets continue to trade firm bouyed by ICICI Bank and firm global cues, Sensex has risen 276 points to 20,301 and Nifty has surged 92 points to 6095. Reliance Industries has pared some gains, the energy giant has risen 0.7% versus 1.3% rise in the morning session.
---------------------------------Updated at 9:50 PM
Among the earnings Impact, Reliance Industries surged after posting 28% rise in net profit in the second quarter led by higher gross refining margins giving a fillip to the Benchmark. Exports rose from $7.5 bn to $13.4 billion year on year.
ICICI bank continued its dream run, up 5.5% after reporting 22% rise in September quarter net profit. Hero Honda fell 2.2% after two wheeler maker reported 15% drop in net due to surge in input costs. Auto major Maruti Suzuki fell 0.3% after company indicated rise in input costs and brokerage Credit Suisse downgraded the stock.
Sandip Raichura, Business Head, PINC Research said, "The results have surprised negatively or have just been up to expectations, as we go deeper into the earnings season, the results should improve. There are no major threats now on the downside associated with the results."
Asian markets also rose in the morning session after China's Purchase Managers Index spiked to 54.7 from 53.8 in September higher than the median projected pulling the Shanghai Composite up 1.9%. Even Hong Kong's Hang Seng surged over 2% as Chinese factories got busy in the month of October. Japan's Nikkei has fallen 0.1% despite speculations that Japanese government has intervened to put a cap on rising Yen. Singapore's Straits Times, South Korea's Seoul Composite, and Taiwan Weighted surged over 1%.
Markets may trade in 6000-6300 range in the short-term. Jaypee Derivates in a research note said, "The strike PCR at 6000 is 1.8 indicating that Nifty will find some support around 6000 levels, and at 6300 is 0.15, hence 6300 will act as a resistance for Nifty in the near term."
RBI policy in India and Federal Reserve policy in US may make waves tomorrow. RBI is expected to raise rates by 25 bps for the 6th time this year. "25 basis point (bps) price hike is being anticipated, and it has been more or less been factored in by the markets," Raichura said.
US Fed may announce second round of quantitative easing and purchase government securities between $600 billion to one trillion. "Federal Reserve policy outcome will decide the liquidity flow across the world and that can neutralize any swing in rates," Raichuria added.
Raichura has given accumulate call equities in the medium term. He is positive on import intensive sectors and has given an avoid call on industies with net rupee exports and commodity consuming companies.
Broader markets trade firm, midcap and smallcap indices have risen over 1.2% each. BSE Banking is the top gainer, led by ICICI Bank, Axis Bank, up 2%, Kotak Mahindra Bank, up 1.7% and Indusind Bank, up 1.5%.
BSE Realty stocks are on firm ground, DB Realty soared 3.1%, Anant Raj Industies surged 2.8%, Unitech spiked 2.3% and Indiabulls Real Estate zoomed 2%.
Jaiprakash Associates rose 4%, ACC surged 1.8% and Sterlite Industries zoomed 1.8% are the top gainers on Sensex. Hero Honda and Maruti Suzuki are the top losers, down over 1% each.
Market breadth is positive, 1646 stocks have advanced for 486 declining stocks.
