Nov 09, 2012 10:49 AM IST | Source: Moneycontrol.com

Nifty lacklustre; ONGC drops post disappointing Q2 nos

Indian equity benchmarks remained lacklustre following mixed Asian cues and after pricing in the Obama's re-election news. The fall in ITC, Reliance Industries, HDFC Bank and SBI offset gains in Infosys, ONGC, Tata Motors and ICICI Bank.

Nifty lacklustre; ONGC drops post disappointing Q2 nos

Indian equity benchmarks remained lacklustre following mixed Asian cues and after pricing in the Obama's re-election news. The fall in ITC, Reliance Industries, HDFC Bank and SBI offset gains in Infosys, ONGC, Tata Motors and ICICI Bank.

The 30-share BSE Sensex gained 25.38 points to 18,871.64 and the 50-share NSE Nifty went up 4 points to 5,742.70.

India's largest lender State Bank of India was volatile ahead of quarterly earnings today. Investors will closely watch its numbers as other PSU banks disappointed the street by raising asset quality concerns.

While explaining the trend in PSU banks, Suresh Mahadevan, MD & Head of Indian Equities, UBS Securities said, "We have not been very positive on the whole PSU banks pack and that includes SBI. We do not have a very positive view on the name, but there is some chatter that results maybe better and so we will have to wait for the event."

State-owned oil & gas producer ONGC dropped 1.66 percent as its net profit fell 3 percent quarter-on-quarter to Rs 5,896 crore in the second quarter of FY13, impacted by Rs 7,103 crore on account of discount to oil marketing companies.

Software services exporter Infosys lost nearly 1 percent. Private sector lender ICICI Bank, commercial vehicle maker Tata Motors and engineering conglomerate Larsen & Toubro were down 0.3-0.5 percent.

Cigarette major ITC and private oil & gas producer Reliance Industries gained marginally.

Drug producer Sun Pharma rose 1 percent as the company will acquire dermatology company Dusa Pharma for USD 8/share in cash for USD 230 million.

Private power producer Tata Power bounced back with 1.5 percent gains following sharp fall in two previous sessions.

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At 9:20 hours IST: Sensex volatile; Reliance, HDFC Bank, M&M gain

The BSE Sensex opened volatile on Friday despite extended losses yesterday in the US markets for the second consecutive session. The US equity markets fell 1 percent yesterday as concerns over the looming fiscal cliff overshadowed a pair of better-than-expected economic reports. Asian markets too were down in early trade but later on some of them trimmed losses while some rebounded.

The 30-share BSE benchmark was up 7.5 points to 18,853.77 and the 50-share NSE benchmark rose 0.35 point to 5,739.10.

Research firm RK Global says candle pattern suggests positive momentum to be continued with high volatility. "We expect the Nifty to hold 5690 levels below which it might retrace further. However, its pattern indicated downside risk will be limited. Further, its recent high of 5830 is the major hurdle on the upside that might be challenged," the firm explained.

Country's largest lender State Bank of India gained 0.6 percent ahead of second quarter numbers. Analysts feel the bank may surprise the street by reporting better numbers compared to other PSU banks that raised asset quality concerns.

The CNX Midcap Index rose 25 points to 7,991 as advancing shares outnumbered declining by a ratio of 703 to 318 on the National Stock Exchange.

In the second line shares, Manappuram Finance tanked 11 percent as its net interest margin fell 270 basis points in Q2FY13.

Subex lost 3 percent as the company reported a huge loss of Rs 61 crore in the second quarter as against Rs 5.1 crore in the previous quarter.

Ashok Leyland gained 6 percent as the company managed to improve its performance in September quarter compared to disappointing numbers in the previous quarter.

State Trading Corporation surged 6.5 percent as it posted a huge profit of Rs 297.3 crore in the July-September quarter as against loss of Rs 140.6 crore in a year ago period.

Indian Hotels rose 1.66 percent on reports that Orient Express has rejected company's USD 1.8 billion takeover offer, saying the proposal "significantly undervalues" the company.

United Spirits shot up 5 percent as UB Group-Diageo are likely to sign term sheet tomorrow for stake sale as both agreed on financial & management contours, say sources.

UB Holdings, Kingfisher Airlines and Mangalore Chemicals were up 3-5 percent.

Sintex Industries was up 1.4 percent as the company launched QIP book yesterday to raise Rs 140-225 crore.

Pfizer, Natco Pharma, Parsvnath Developers, Hathway Cable and Cummins gained 1-3 percent following quarterly earnings.

Welspun India up 9 percent

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