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Most Asian shares, oil prices and the dollar came under pressure on Monday as politicians in Washington showed no signs of making progress to resolve the U.S. budget standoff, while safe-haven gold inched higher. A rub-off effect is also seen in the Indian markets with both Sensex and the Nifty dropping over 1% each.
The broader markets are, however, out-performing the benchmark indices. The BSE Mid-cap index has gained 0.18% or 5,741 and the small-cap index is up 0.29% at 5,582.
The overall breadth of the BSE midcap index remains marginally negative as 111 stocks are declining while 103 are advancing.
Among key mid-cap gainers, Bombay Dyeing and Manufacturing Company has surged 13% at Rs 60.20 on reports that global private equity (PE) firms are eyeing stake in the Wadia Group firm.
Wockhardt hit an upper circuit limit of 5% at Rs 470.30 on BSE on bargain hunting after the stock fell 23.99% in the preceding nine trading sessions to Rs 447.95 on 4 October 2013, from a recent low of Rs 589.30.
Jubilant Life Sciences has gained over 3% after the company's board approved a proposal to transfer its active pharmaceutical ingredient and dosage form business to its Singapore-based subsidiary.
Apollo Tyres surged 3.46% on growing uncertainty about the status of the company's $2.5 billion deal to buy US-based Cooper Tire & Rubber Company.
Shares of select non-banking finance companies (NBFC) that applied for the banking licenses are trading higher by up to 4% in otherwise weak market after Finance Minister P Chidambaram said that the Reserve Bank of India (RBI) would shortly issue seven licenses.
L&T Finance Holdings, Bajaj Finserv, Magma Fincorp, LIC Housing Finance, Muthoot Finance and Srei Infrastructure Finance are up 1-4% on the Bombay Stock Exchange.
STOCKS TO BUY & SELL
According to Navneet Daga, derivative analyst at KR Choksey Securities, ‘LIC looking interesting, huge OI long buildup action visible but stock will face strong resistance near 218. So for traders buy the dips in the stock make sense. M&M, had been stuck near 880 zone, for short term its not looking major breakout above that level.”
Adds Ranak Merchant, Technical Analyst - Strategies of Sushil Financial Services, "Mid caps are showing signs of momentum and may outperform the benchmark index in the short term. Stocks to watch would be a combination of various sectors, tyres have seen a good rally, banking stocks to watch would be Dena Bank for Rs 53, DCB for Rs 51, Allahabad Bank for Rs 85, Kolte Patil and Purvankara from realty for 78 above 69 and 78 above 73 respectively. PSU banks have underperformed and therefore may play catch up, but the month being heavy on news and events, accumulation for medium term to be done gradually and in small lots."
Devangshu Datta, Technical Analyst recommends Bata India (stop loss at Rs 865, target at Rs 885), Sun TV (stop loss at Rs 414, target at Rs 435) and Welspun Corp (stop loss at Rs 30.25, target at Rs 33-34).
