Domestic equity indices BSE Sensex and NSE Nifty swung between gains and losses on Wednesday as investors stayed cautious ahead of US FOMC meet outcome due today and F&O expiry on Thursday. Later, Sensex closed 56.82 points up at 26,064.12, while Nifty settled 17.25 points up at 7,979.90.
In the 50-share index, Adani Ports, Bharti Airtel, ONGC, Bharti Infratel and GAIL gained between 2.65 per cent and 5.38 per cent. On the other hand, ICICI Bank, Axis Bank, State Bank of India (SBI), UltraTech Cement and Tata Power slid between 1.80 per cent and 3.45 per cent.
Sectorwise, the BSE Telecom index, BSE Oil & Gas index and BSE FMCG index gained 2.93 per cent, 1.23 per cent and 1.02 per cent, respectively. The BSE Bankex, BSE Power index and BSE Realty index slid 0.87 per cent, 0.50 per cent and 0.48 per cent, respectively.
Achin Goel, head, wealth management and financial planning, Bonanza Portfolio said, “Nifty was seen trading in a very narrow channel throughout the day’s session due to absence of fresh cues from both international and domestic markets.”
Gains remained capped as market participants remained concerned with global rating agency Moody’s warning to the government over the bad loan situation. The rating agency believes that rising credit profile of corporate India may pose a rating risk to the country.
Axis Bank plunged 3.11 per cent after the private bank on Tuesday posted an unexpected fall in net profit and said it expected bad loans to rise in the current financial year.
Indian banks’ bad loans have surged in the past six months after an asset quality review ordered by the central bank as part of a clean-up exercise.
NHPC dipped 6.51 per cent after the government on Tuesday announced an 11.36 per cent stake sale in the company to raise up to Rs 2,800 crore.
Among the gainers, telecom tower infrastructure provider Bharti Infratel rose 3.17 per cent after the company’s board approved a buyback proposal.
Asian equity markets ended mostly lower on Wednesday as the yen strengthened and weak earnings results from iPhone maker Apple put pressure on technology stocks. A sharp overnight rally in oil prices and positive industrial profits data out of China failed to lift investor sentiment ahead of key central bank decisions from the US Federal Reserve and the Bank of Japan. The Federal Reserve’s two-day policy meeting ends later today, with investors mainly looking for guidance on the outlook for interest rates. Rate decisions from the Reserve Bank of New Zealand and the Bank of Japan are due on Thursday. Chinese shares ended lower even as positive industrial profits data boosted hopes the economic recovery is gaining momentum. Profits of China’s major industrial firms climbed an annual 11.1 per cent in March, up from a 4.8 per cent rise in the Jan-Feb period. Japanese shares ended lower with a strengthening yen, disappointing earnings and anxiety ahead of the BOJ verdict weighing on markets.
Markets through the day
3.30 pm: Sensex closed 56.82 points up at 26,064.12, while Nifty settled 17.25 points up at 7,979.90.
3.10 pm: Coffee Day Enterprises shares jumped over 15 per cent. Sensex was trading 63.05 points up at 26,070. Nifty was up 22.40 points at 7,985.
2.17 pm: Hero MotoCorp was trading 0.73 per cent up at Rs 2953.65. Hero MotoCorp, country’s largest two-wheeler maker, has decided to invest Rs 3,000 crore to set up a new manufacturing facility in Andhra Pradesh. The plant will have a capacity of 1.8 million units. For the new facility, the state government has allocated around 600 acres at Tada in Chittoor district, close to Chennai. Chief Minister Chandrababu Naidu will be unveiling the foundation stone next month. Meanwhile, the company is planning to set up two more facilities, at Neemrana in Rajasthan and Halol in Gujarat.
1.52 pm: Biocon shares were trading 0.91 per cent up at Rs 569.45 after the company reported a 79.1 per cent increase in its net profit at Rs 360.9 crore for the fourth quarter ended March on top of higher sales and exceptional income. Sensex was trading 42.50 points up at 26,049.80, while NSE Nifty was trading 11.90 points up at 7,974.55.
1.25 pm: Meanwhile, Venu Madhav, chief operating officer, Zerodha said, “The daily chart of Nifty50 has formed a Rising three-methods pattern which is a continuing bullish pattern that indicates the uptrend is here for some more time. While the support for Nifty50 levels remain intact at 7,825, any close above 8,000 could indicate that the next leg of rally could go up to 8,330.” Nifty was up 24.25 points at 7,896. Sensex was trading 69.53 points up at 26,076.
1.16 pm: Bharti Airtel was trading over 4 per cent up ahead of Q4 results today.
1.15 pm: Amines & Plasticizers has formed a wholly owned subsidiary in RAK Free Zone, Ras AL Khamiah in the United Arab Emirates (UAE) for doing the business of general trading / specialty chemicals. Share price of the company was trading 4.15 per cent up at Rs 20.10. Sensex was up 45.65 points, or 0.18 per cent, at 26,052.95.
1.10 pm: Sensex was up 46.51 points at 26,053. Bharat Petroleum Corporation (BPCL) has received green nod for its Rs 694-crore project of developing LPG import terminal as well as storage, bottling and bulk distribution facilities at Haldia Dock Complex in West Bengal. Shares of BPCL were trading 0.49 per cent up at Rs 981.
12.37 pm: Parag Milk Foods is coming out with a 100% book building; initial public offering (IPO) to raise Rs 300 crore in fresh capital. The firm has priced the offer in a band of Rs 220-227 per equity share. The issue will open for subscription on May 04, 2016 and will close on May 06, 2016. The shares will be listed on BSE as well as NSE. The face value of the share is Rs 10 and is priced 22.00 times of its face value on the lower side and 22.70 times on the higher side. Sensex was up 61 points at 26,068. Nifty was trading 16 points up at 7,978.
12.03 pm: Maruti Suzuki India (MSIL) is all set to start operations in Gujarat, four months ahead of schedule in January 2017. The company was to start production from May-June 2017. In this regard, the company will spend around Rs 4,400 crore this year, mainly for strengthening research and development, and building marketing and sales infrastructure. Shares of Maruti were trading 0.53 per cent up at Rs 3,889.85. Sensex was up 37 points at 26,044.
11.29 am: Larsen & Toubro’s (L&T) construction arm — L&T Constructions has won orders worth Rs 1,798 crore across its business segments in April 2016. Share of L&T were trading 0.46 per cent down at Rs 1,275.10.
11.06 am: Indian rupee weakened by 6 paise to 66.58 against the dollar in early trade at the Interbank Foreign Exchange market largely due to month-end demand for the US currency from importers. Sensex was trading 4.43 points down at 26,002.87, while NSE Nifty was trading 3.40 points up at 7,966.05.
10.35 am: Bharti Infratel stocks were trading 3.06 per cent up at Rs 374.95 after it reported 19 per cent jump in net profit at Rs 662 crore for the quarter ended March 31, 2016, on the back of growth in network rollout by operators. The company also announced buy back of equity shares worth Rs 2,000 crore and proposed a dividend of Rs 3 per equity share. Sensex was trading 5.48 points up at 26,012.78, while NSE Nifty was trading 6.40 points up at 7,969.05. The NSE Nifty index surpassed its previous high of 2016 and touched its new intraday high of 7,983. Earlier, the index hit its intraday high of 7,978.45 on April 21. Now, the 50-share index is trading at its highest level since November 6, 2016.
10.15 am: Rallis India shares were trading 2.99 per cent up at Rs 199.50 after the company reported a 51 per cent increase in its consolidated net profit at Rs 32.25 crore for the March quarter. Sensex was trading 37.32 points up at 26,044.62, while NSE Nifty was trading 16.45 points up at 7,979.10.
9.47 am: Syngene International stocks were trading 1.84 per cent up at Rs 385.50 after it reported a 19.6 per cent rise in standalone net profit at Rs 66.5 crore for March quarter. Sensex was trading 4.11 points down at 26,003.19, while NSE Nifty was trading 4.55 points up at 7,967.20.
9.33 am: NHPC shares were trading 6.07 per cent down at Rs 21.65. In the first disinvestment of current fiscal, the government is selling 11.36 per cent equity shares in electricity generator NHPC Ltd at Rs 21.75 apiece to raise about Rs 2,700 crore. The issue price of Rs 21.75 a share is at a discount of 5.6 per cent to NHPC’s closing price of Rs 23.05 on BSE.
9.23 am: Sensex was up 9 points at 26,016. Nifty was trading 9.20 points up at 7,971. IPO of Thyrocare Technologies hit capital markets today. Should you invest?
9.16 am: Axis Bank was trading 3.27 per cent down at Rs 464.75. Private lender Axis Bank on Tuesday reported a marginal 1 per cent fall in net profit at Rs 2,154.28 crore for January-March due to higher provisioning for bad loans. The bank had reported a net profit of Rs 2,180.59 crore in the January-March quarter of 2014-15.
9.15 am: The BSE Sensex opened 50.88 points, or 0.20 per cent, down at 25956.42, while Nifty 50 index opened 20.65 points, or 0.26 per cent, down at 7,942.
8.44 am: Asian stocks inched up on Wednesday, reflecting hopes that upcoming US and Japanese central bank policy meetings could benefit risk assets, while crude oil prices hovered near 2016 highs.
The Dow Jones industrial average rose 13.08 points, or 0.07 per cent, to 17,990.32 on Tuesday, the S&P 500 gained 3.91 points, or 0.19 per cent, to 2,091.7 and the Nasdaq Composite dropped 7.48 points, or 0.15 per cent, to 4,888.31.
Domestic benchmark index Sensex rallied over 328 points on Tuesday and reclaimed the 26,000-mark to close at about a 4-month high, tracking a recovery in global stocks and oil prices.
Shares of Syngene International and Bharti Airtel will remain in focus on Wednesday.
Biocon’s contract research arm Syngene International on Tuesday reported a 19.6 per cent rise in standalone net profit at Rs 66.5 crore for March quarter. It had posted a net profit of Rs 55.6 crore in the corresponding period of the previous fiscal.
Bharti Airtel, Yes Bank, Shriram City Union Finance, Alembic Pharma, CEAT, Exide Industries, GATI, Gateway Distriparks, JSW Energy, KPIT Tech and Sadbhav Engineering to announce their results today.
(With agency inputs)