 "Expect strong returns in new Samvat")
Markets have turned flat in the late morning trades as weakness in defensive shares weigh on back of an appreciating rupee weigh on the exchanges.
Meanwhile, prospects of early interest rate hike by the US Federal Reserve in June and slip in crude oil prices hurt sentiments.
At 10:52 am, the S&P BSE Sensex is up 30 points to quote at 25,333 and the Nifty50 has climbed 17 points to trade at 7,767.
The rupee recovered 19 paise to 67.25 against the dollar in early trade today on increased selling of the US currency by exporters and banks amid a higher opening in the domestic stock market.
Top five losers in the Sensex pack are Cipla, Sun Pharma, Infosys, ONGC and HDFC down between 0.7%-2%. In contrast, top gainers in the Sensex pack are ITC, Adani Ports, Bharti Airtel Tata Motors and HUL up between 1%-3.5%.
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(updated at 9:55 am)
After a robust opening, markets have trimmed gains as losses in technology shares and Index heavyweights limit the rise on the Sensex. Meanwhile, fears of an interest rate hike by the US Federal Reserve in the month of June continues to dent sentiments.
Going ahead, volatility is to be seen on the bourses as traders roll over positions in the futures & options segment from the near-month May series to June series due on Thursday.
At 9:55 am, the S&P BSE Sensex is up 71 points to quote at 25,373 and the Nifty50 has climbed 24 points to trade at 7,774.
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(updated at 9:15 am)
Markets have started the week on a positive note, mirroring strength in the Asian equities following a firm finish at the Wall Street on Friday. Going ahead, volatility is to be seen on the bourses as traders roll over positions in the futures & options segment from the near-month May series to June series due on Thursday.
Last batch of quarter results, progress of monsoon, trend in global markets, foreign institutional investor stance and movement of rupee and crude oil will dictate trend this week.
At 9:15 am, the S&P BSE Sensex is up 180 points to quote at 25,482 and the Nifty50 has climbed 53 points to trade at 7,802.
“Caught inside the broad trading range of 7,900-7,750, there is little to suggest that a directional move could unfold today. Early positive bias, as indicated by positive divergences in short term oscillators, is likely to face resistance from the 7,796-7,825 region. Potential for dramatic drops is not ruled out, but is likely to be short lived and limited to 7,640,” said Geojit BNP Paribas in a Monday morning note.
Meanwhile, foreign portfolio investors (FPIs) and foreign institutional investors (FIIs) sold shares worth net Rs 372.25 crore during the week as per Sebi's record, including the provisional figure of May 20.
RESULT CALENDAR FOR THE WEEK
Bharat Petroleum Corporation, Tata Power, Cipla, Tech Mahindra, Bajaj Auto, GAIL (India), Tata Steel, Larsen & Toubro, Bharat Heavy Electricals, State Bank of India and Coal India, among others, will announce their fourth quarter results this week.
GLOBAL MARKET
Asian shares rose on Monday after a solid session on Wall Street, while the dollar moved away from recent highs though remained supported as investors bet that the US Federal Reserve was on track to raise rates sooner rather than later.
But Japan's Nikkei stock index extended losses, shedding 1.1% on worrying economic data and reports that Japan's sales tax increase would proceed as planned.
Data released before the open showed Japan's exports tumbled 10.1% in April from a year earlier, in line with expectations but down for a seventh straight month, reflecting sluggish demand from China and emerging markets. Imports fell sharply, which in turn boosted the country's trade surplus above expectations.
The Markit/Nikkei Flash Japan Manufacturing Purchasing Managers Index showed Japanese manufacturing activity contracted at the fastest pace in more than three years in May as new orders slumped.
However, among other major indices, China’s Shanghai Composite, Hong Kong’s Hang Seng and Singapore’s Straits Times have climbed between 0.3%-0.5%.
STOCKS IN FOCUS
ITC declared a 2:1 bonus share issue on Friday. So after almost six years, shareholders will get one share for every two they own. The board of directors of ITC also recommended a dividend of Rs 8.50 per share.
The company witnessed a 5.7% rise in net profit at Rs 2,495 crore in the fourth quarter ended March 31, 2016, compared to Rs 2,361 crore in the year-ago period. The revenue during the quarter grew to Rs 10,062 crore from Rs 9,292 crore in the year-ago period. The stock is the top gainer in the Sensex pack and has surged over 5%
Private lender HDFC Bank plans to open about 500 new branches this financial year as part of its steps to expand footprint. The stock is trading with modest gains.
Oil and Natural Gas Corporation (ONGC) is trading mildly lower as it faces a repeat of the Krishna Godavari (KG) basin fiasco in Iran, as lengthy negotiations on terms may drive it to a point where its discovered gas reserves in Farzad-B field in the Persian Gulf may be drawn out by neighbouring Saudi Arabia.
Tata Motors has climbed 0.6% as it is in talks with a local manufacturer in Iran to set up a joint venture for assembling its petrol cars here, as it looks to tap the fast growing market that has just emerged from sanctions.
SpiceJet, which has remained profitable for five straight quarters, has surged nearly 1% as it is looking to list its securities on the National Stock Exchange.
The state-run BHEL will be dropped from the BSE's benchmark index Sensex from June 20 and will be replaced by Power Grid Corporation of India. BHEL is trading flat while Power Grid is up 1%.
State-owned National Aluminium Company(NALCO) has soared over 6% as it considers a proposal to buy back its shares at a board meeting scheduled on May 25, the company said in filing to the Bombay Stock Exchange on Friday.
Cox & Kings posted a consolidated net loss of Rs 305.53 crore for the quarter ended March 31, 2016. The company had posted a net profit of Rs 64.56 crore for the corresponding period of the previous fiscal. The stock has cracked over 5%.
Britannia Industries reported a 13.73% increase in its consolidated net profit at Rs 190.23 crore for the quarter ended March 31, 2016. Britannia has slumped 6%.
IDBI Bank recorded a net loss of Rs 1,735.81 crore for the March quarter, hit by a two-fold jump in bad loans. The bank had earned a net profit of Rs 545.94 crore during the January-March period of 2014-15. IDBI Bank has shed 1%.
Balrampur Chini Mills reported a 30% jump in standalone net profit at Rs 98.78 crore for the March quarter, on better realisation from sale of the sweetener. The stock has gained over 2%.
Somany Ceramics reported a 76.31% increase in standalone net profit at Rs 26.06 crore for the fourth quarter ended March. The stock has climbed nearly 2%.
