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After witnessing a sharp fall yesterday on account of profit booking, markets have rebounded today. The Sensex and the Nifty have gained 0.6% each in trade thus far after a flat opening.
The broader markets are performing in-line with the benchmark indices in noon deals today. The BSE Mid-cap index has advanced 0.55% to 6,480 and the small-cap index is up 0.4% at 6,139.
Meanwhile, April WPI Inflation has come in at 4.89%, lowest since 2009.
Among the key mid-cap gainers, Zydus Wellness has rallied 14% to Rs 540, extending its previous day’s 6% gain, on reporting a healthy 59% year-on-year (yoy) jump in its consolidated net profit at Rs 37 crore for the fourth quarter ended March 31, 2013 on the back of strong revenue growth.
Eicher Motors has rallied 5% to Rs 3,213 after reporting a better-than-expected consolidated net profit at Rs 98 crore for the fourth quarter ended March 31, 2013.
Aptech has surged 7% to Rs 62.40 after its board approved the buyback of company’s equity shares at maximum price of Rs 82 per share from the open market.
Other notable gainers include Hindusthan National Glass & Industries, Network 18 Media & Investments, Godfrey Phillips India, Responsive Industries, Mahindra & Mahindra Financial Services and Motherson Sumi Systems, all surging by 4%.
On the losing side, Elder Pharma is locked in lower limit of circuit filter for third consecutive day, down 10% at Rs 202, its lowest level since May 2009 on BSE after the company said an institutional investor invoked pledged shares and sold them in the open market. The stock has tanked 46% in past five trading sessions.
Amara Raja Batteries has tanked 10% to Rs 253 in early morning deals on NSE after reporting a marginal 2.2% year-on-year (yoy) rise in net profit at Rs 59.60 crore for the quarter ended March 31, 2013 (Q4), due to higher depreciation and amortization expenses.
Adds AK Prabhakar, Senior Vice President (Equity Research), Anand Rathi Financial Services, “Cadila Healthvare has been consolidating between Rs 750-Rs 790 for as many as 13 weeks and now a big upmove of atleast 30-35% cannot be ruled out. The stock is trading above its 20 DMA and 50 DMA at Rs 773 and 757 respectively. Target of Rs 1,070.
Moreover, pick of the month is Rallis India. We like Fertiliser stocks ahead of Monsoon season - Rallis India, Coromandel International and GSFC.
We are also bullish on YES Bank. YES Bank has been in the uptrend after making double bottom of Rs 416. We have a target of Rs 590. “
Says Ravi Shenoy, Asst Vice President (Mid-cap Research), Motilal Oswal Securities, “Investors should be selective in their approach and should buy high quality Midcap stocks. We recommend some amount of exposures to housing finance and jewellery in the portfolio at any point of time.
In the housing finance space, we like Gruh Finance and Can Fin Homes and would recommend these stocks for investors. From the Jewellery space, we are bullish on TBZ and Titan Industries. We also like Bajaj Finance, Bajaj Corp and Finolex Cables from growth perspective.”
