 "Markets stage a smart recovery, Nifty reclaims 7,500; RIL up 3%")
The S&P BSE Sensex ended up 172 points at 24,854 and the Nifty50 ended up 52 points at 7,562.
Reliance Industries, Infosys and Tata Motors were the top gainers.
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(Updated at 2:25pm)
Markets have made a smart recovery from day’s low supported by buying demand among index heavyweight shares like RIL, Tata Motors and Infosys.
At 14:25 pm, the S&P BSE Sensex is up 157 points at 24,839 and the Nifty50 is up points at 7,556.
The top gainers from the Sensex pack are Reliance Inds, Tata Motors, M&M, Infosys and Sun Pharma, all surging between 1%-3%.
Reliance Industries (RIL) has moved higher by 4% to Rs 1,087, its highest level since June 18, 2014 on the National Stock Exchange (NSE).
Shares of Infosys have moved higher by 2% on the BSE ahead of the third quarter results tomorrow on January 14, 2016.
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Updated at 13:15 pm
After opening on a firm note, markets continue their southward journey in the post noon trades as investors are buying the battered bluechips at attractive levels. The unexpected contraction in the factory output for the month of November has put tremendous pressure on the capital goods shares.
At 13:15 pm, the S&P BSE Sensex is down 147 points at 24,535 and the Nifty50 is down 42 points at 7,468.
On the economic front, the industrial output for the month of November contracted to 3.2% - its sharpest contraction in four years- as compared to an expressive 9.4% growth in the previous month. The fall in the output levels is attributed to fewer days owing to Diwali and the incessant rains in Chennai that affected the production capacity.
Also, the consumer inflation for the month of December rose to 5.61% as against 5.4% when compared month on month.
The disappointing macro-economic data has put pressure across the board with BSE Capital Goods index performing the worst, down by 3.6%. BSE Healthcare and Bankex indices also took the beating as they are down between 1-3% each.
From the capital goods sector, L&T, BHEL, Crompton Greaves, Suzlon have all dropped between 3-5% each.
From the Bankex pack, barring Federal bank and IndusInd Bank all other banks are reeling under pressure. HDFC Twins, Axis Bank, SBI, ICICI Bank , all are down between 1-3% each.
IT stocks are trading mixed after the US on Tuesday notified massive increase in fees in certain categories of the popular H-1B and L-1 visas which would mainly hit Indian IT companies. Infosys is up 1.1% while TCS and Wipro have lost 0.5%. Infosys will announce their Q3 results tomorrow.
Individually, Coal India is making its biggest tech overhaul in four decades to check rampant theft and shed its image as an inefficient behemoth, spurred by an impending opening up of the sector to private firms for the first time since the 1970s. The stock has dropped 0.4% owing to the weakness in markets.
Shares of Bharti Airtel have slipped 3.1% after the company said it overseas subsidiary Bharti Airtel International (Netherlands) BV will sell stakes in two African operations to French telecom major Orange.
Among gainers, Tata Motors has gained nearly 1% after it posted 7 percent increase in its global sales, including that of Jaguar Land Rover (JLR) vehicles, at 91,762 units in December
Among other notable gainers are Bajaj Auto, RIL, and M&M, up between 0.2-1% each.
RESULTS CAPSULE
TCS has dropped nearly 3% after it reported lower-than-expected revenues in the December quarter. This is for the sixth quarter in a row that the Mumbai-headquartered company misses the Street’s revenue estimates. The revenue at Rs 27,364 crore grew 11.7% on a year-on-year (y-o-y) basis against a consensus revenue of Rs 27,643 crore.
Federal Bank has gained 2.2% after the private lender posted a 38.5% drop in net profit at Rs 162.7 crore for the third quarter ended December due to a rise in bad loans.
IndusInd Bank reported a 30 per cent increase in its net profit to Rs 581 crore led by good growth in non-interest income and other income. In contrast, Federal Bank and DCB Bank's October-December earnings missed Street estimates with both banks recording a slip in net profit. The stock has gained 2%.
GLOBAL MARKETS
The Asian markets posted a rally today after China trade data provided some respite to the equities in Asia. However, Shanghai Composite broke over 2% for the day. But Japan’s Nikkei finished up nearly 3%.
Following cues from global markets, European markets have opened up in green. The major European indices are trading up between 1-2% each.
