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Benchmark indices have trimmed early gains on account of profit booking in Infosys shares. Selling among FMCG major ITC and financials shares has also capped the upside.
By 10:30, the Sensex was up by 156 points at 19,832 mark and the Nifty gained 28 points at 5,963 levels.
According to Mohit Gaba, independent technical analyst, “The Nifty gave us a break out above 5910 after 2 weeks or range bound movement, Technically its still up and could move on towards 6050 - 6100. Traders should trade on the long side but be cautious as there is not much support from the Bank Nifty, have a stop loss at 5920 on the Nifty spot.”
The rupee today lost 18 paise to 59.85 against the dollar in early trade on the Interbank Foreign Exchange due to appreciation of the US currency against the euro and yen overseas.
On the sectoral front, BSE IT and TECk indices have surged between 5-6%. BSE Realty, Consumer Durables, FMCG and Metal indices have declined by nearly 1% each.
Shares of information technology (IT) companies are in focus after the sector major Infosys has reported a better-than-expected net profit for the quarter ended June 2013.
Infosys has rallied nearly 15% to Rs 2,905 in opening deals on the Bombay Stock Exchange (BSE). However, the stock has trimmed early gains on account of profit booking at higher levels.
Infosys has reported a consolidated net profit at Rs 2,374 crore against an average analysts estimates of Rs 2,296 crore for the first quarter ended June 2013 (Q1). The company has retained its 6-10% US Dollar revenue growth guidance for FY2014.
Among the other individual stocks, Tata Consultancy Services (TCS) is up 2.4% at Rs 1,598, followed by MindTree and Wipro are trading higher by 2% each at Rs 900 and Rs 370 respectively.
HCL Technologies, Hexaware Technologies, Tech Mahindra and MphasiS are up in the range of 1-2%. The BSE IT index, the largest gainer among the sectoral indices, is up 6% compared to 0.74% rise in benchmark Sensex.
Sun Pharmaceutical Industries is trading higher by nearly 1% to Rs 1,101 after the company announced US FDA has granted its subsidiary final approval for its Abbreviated New Drug Applications (ANDA) for generic version of Prandin®, Repaglinide tablets.
Auto majors like Maruti Suzuki, M&M and Hero Moto have slipped between 1-2%.
Car sales fell an annual 9% in June as demand continued to suffer due to rising ownership costs and sluggish economic growth. Domestic passenger car sales were 1,39,632 units in June this year from 1,53,450 units in the same month of 2012, with demand dropping for the eighth straight month.
Banking and financial shares like HDFC and SBI have declined by 1% on account of profit booking.
FMCG major ITC has declined by over 1%.
Cipla has declined by almost 2%. Cipla have come under the scanner of the regulator for failing safety and efficacy tests. Samples of Cipla’s Ibugesic 200 and 400 picked up by drug inspectors last month were found to be of substandard quality and the regulator is likely to take action against the firm, a senior official in the office of Drug Controller General of India (DCGI) said.
Among other shares, Elder Pharmaceuticals is trading higher by 4% to Rs 368 after the company said its board approved restructuring of the company business to reduce debt.
The market breadth in BSE remains almost flat.
