May 02, 2012 02:20 PM IST | Source: Moneycontrol.com

Markets Live: Nifty hovers around 5250; Re on verge of breaching 53 mark

Nifty hits fresh intraday low in afternoon trade despite European markets opening in positive terrain. State-run banks were seen selling dollars in the foreign exchange market after the rupee fell below 53 to the dollar, likely on behalf of the RBI.

Markets Live: Nifty hovers around 5250; Re on verge of breaching 53 mark

Nifty hits fresh intraday low in afternoon trade despite European markets opening in positive terrain. State-run banks were seen selling dollars in the foreign exchange market after the rupee fell below 53 to the dollar, likely on behalf of the RBI, four dealers told Reuters.

IT stocks rallied in trade today on weak rupee. Positive economic data in the US also boosted sentiments for the sector. US is considered to be the biggest outsourcing market for the Indian IT companies.

The advance decline ratio was at 1:1. About 1345 shares advanced, 1307 shares declined, and 767 shares remain unchanged.

Europe Opening

European shares joined in a worldwide rally on Wednesday after strong U.S. factory activity data and a pickup in Asia raised hopes of a global economic recovery, but fears over the health of the euro zone kept the single currency under pressure.

However, investors in Europe, returning after the May Day holiday, were unlikely to take on big risk positions ahead of a European Central Bank meeting on Thursday and weekend elections in Greece and France which could herald a softening in austerity measures.

Bharti Airtel gains more than 2% despite reporting its ninth straight quarterly profit decline, as investors chose to focus on improving EBITDA margins.

Goldman Sachs says despite the earnings miss, Bharti Airtel's overall EBITDA margins improved 115 basis points quarter-on-quarter led by improvements in its mobile and Africa businesses.

KPIT Cummins Infosystems was locked at 20% upper circuit. The consolidated net profit rose 6.4% to Rs 43.71 crore on 26.7% growth in net sales to Rs 480.01 crore.

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It's a stable session for the Indian equities, the Nifty is firm above 5250 led by rate sensitives and commodities. The midcap universe is buzzing too. Buying was seen in IT, FMCG and banking stocks while auto and power stocks were trading weak. ITC, Infosys, TCS and Bharti Airtel were major contributors to the bourses.

The Sensex was up 62.83 points or 0.36% at 17381.64, and the Nifty was up 17.30 points or 0.33% at 5265.45.

About 1361 shares advanced, 1137 shares declined, and 921 shares remained unchanged.

Listen to the accompanying audio for more mid-market cues..

Top gainers on the Sensex were HUL at Rs 428.50 up 2.92%, Bharti Airtel at Rs 316.75 up 2.08%, Jindal Steel at Rs 511.90 up 1.83%, TCS at Rs 1,267 up 1.78% and DLF at Rs 189.70 up 1.50%.

Saurabh Mukherjee of Ambit expects the Sensex to head higher to 19000 by year end on GAAR clarification and lower crude prices.

Meanwhile, Bharti's Q4 topline was hit by tepid performance in Africa, while bottomline has come in lower than estimates due to a higher forex loss. However, the stock has reacted positively on better operational performance, an EBIDTA margin of over 33%. The company's Q4 net profit was down at Rs 1006 crore versus Rs 1011 crore. However, its net revenue was up at Rs 18729 crore versus Rs 18477 crore. The company's forex loss stood at Rs 132 crore.

Hathway, Den and WWIL reacted positively to TRAI’s latest tariff order in which the regultor has legalised a uniform carriage fee, contrary to expectations of a withdrwal. While the fee per channel will reduce, the revenue from carriage of channels will go up due to increased business on account of the must carry provision.

HUL from the FMCG space reacted positively to numbers, the company posted a 21% jump in profits on the back of a 10% volume growth.

Rupee/Bond: The Indian rupee has been an underperformer today though other Asian curencies are stronger; dealers blame this on strong demand for dollars from oil companies. Indian bonds are marginally lower especially because of waning interest for the current 10 and 12 year bond.

Tech major Infosys was trading at Rs 2,473.15 up 0.43% from its previous close of Rs 2,462.60.

Cigarette major ITC was trading at Rs 246.25 up 0.29% from its previous close of Rs 245.55.

Refinery major HPCL was trading at Rs 301.60 up 0.23% from its previous close of Rs 300.90.

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After a small gap-up opening the Indian market was able to hold on to early morning gains. Nifty was holding 5250 mark, slowly and steadily inching towards 5300.

The breadth of the market was positive. About 1391 shares advanced, 855 shares declined, and 1173 shares remain unchanged.

The pace of growth in India's factory sector inched up in April, supported by bulging order books, but slower output growth and increasing price pressures dampened sentiment, a business survey showed on Wednesday.

The HSBC India Manufacturing Purchasing Managers' Index (PMI), compiled by Markit, rose to 54.9 in April from 54.7 in March.

Asian shares rose and the dollar recovered against the yen on Wednesday after strong US factory activity data raised hopes that the world's biggest economy remained on a recovery track while growth in Asian manufacturing improved broader sentiment.

European shares were expected to open mixed, with most exchanges reopening after the May Day holiday on Tuesday. Financial spreadbetters predicted that major European markets would open between down 0.3% and up 0.7%. US stock futures were up 0.2%.

Top gainers on the Nifty: HUL, Bharti Airtel, HCL Tech, SAIL and TCS were trading in green with smart gains.

Top losers on the Nifty: Tata Motors, Bajaj Auto, Maruti Suzuki, ONGC and Asian Paints lost some ground.

Buzzing Stocks

Shares in HUL advanced 2.8% after beating estimates on Tuesday with a 21% rise in quarterly profit, helped by higher volumes, prices and sees strong consumer demand.

CLSA upgrades the stock to "outperform" from "sell" and raises its target price to Rs 465 from Rs 370 earlier.

ICICI Bank shares rose for a fourth session after India's No. 2 lender, extending a rally after posting on Friday a larger-than-expected 31 percent rise in quarterly profit.

Bharti Airtel , India's biggest mobile phone carrier by subscribers, reported its ninth straight quarterly profit decline as intense price competition and losses on foreign exchange eroded earnings.

Bajaj Auto's total sales in April rose 4% from a year ago to 3,81,590 lakh units as growth in motorcycle sales and exports offset a decline in three-wheeler sales.

Rupee

The rupee rose 52.62/63 against the dollar in opening trade versus 52.73/74 Monday close, on strong opening for domestic stocks. Trader however says near-term outlook for rupee remains bearish on the back of weak macro outlook, global concerns.

Busy Week

Investors were unlikely to take big risk positions ahead of a European Central Bank meeting on Thursday, Friday's US jobs data and weekend elections in Greece and France.

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Nifty holds 5250; HUL hits all-time high

The benchmark index Sensex surged more than 100 points in the opening bell on back of positive global cues. Buying was seen in consumer durables, FMCG, metal and realty stocks. Auto stocks were trading sluggish in trade today.

FMCG heavyweight HUL beats street expectations on Tuesday. The company posted a 21% jump in profits on the back of 10% volume growth. Also, an expansion in EBITDA margins by 26% attributed to decline in A&P spends.

The Sensex was up 68.00 points or 0.39% at 17386.81, and the Nifty was up 19.80 points or 0.38% at 5267.95. About 767 shares advanced, 302 shares declined, and 2350 shares remain unchanged.

Top gainers on the Sensex were HUL, DLF, Hero Motocorp, Jindal Steel and ICICI Bank. Top losers on the Sensex were Tata Motors, ONGC, Tata Power, GAIL and Maruti Suzuki.

Auto Sales: A mixed pack so far

Maruti Suzuki reported a 3.4% year-on-year rise in sales in April, the fourth month in a row that the India's top passenger car maker has reported uptick in volumes.

Tata Motors sales declined 7% year-on-year in April to 60,086 units. Its commercial vehicle sales fell 6% to 34,647 units in the domestic market as medium and heavy commercial vehicle sales plunged 29% to 9,829 units.

Midcap Buzz

Hathway Cable, Tube Investment, FAG Bearings, State Bank of Mysore and Bank of Maharashtra were up 3-16%.

3M India, SRF, Pantaloon Retail, Carborundum and Shoppers Stop were bleeding in red.

Pantaloon is set to spin off its branded retail business and list it separately on stock exchanges. The Biyani led company has invited Aditya Birla Nuvo to invest Rs 800 crore via debentures of Pantaloon Retail.

TRAI's new notification to allow Mulit-System Operators to charge a carriage fee from broadcasters. This move will benefit stocks like Hathway Cable, Den Networks and WWIL.

Nifty Chart formation

The 200-day SMA (Simple Moving Average) and 20-day EMA (Exponential Moving Average) have now shifted to 17100 / 5135 and 17400 / 5250, respectively. The ‘20-Week EMA’ is placed at 17200 / 5200 level.

"We are now witnessing a ‘Downward Sloping Trend Line’ resistance around 17350 / 5250 level. The ‘RSI’ momentum oscillator on the daily chart is signaling a positive crossover." says Angel Broking.

Forex Market

"The dollar index against six major currencies was at 78.8, up by 0.1% from the previous day’s close. We expect the US dollar to attract some selling on rallies against the INR. Utilise the highs in the US$/INR May contract to sell." says ICICIdirect.com

Commodity Check

Crude prices trade near the highest level in five weeks with Nymex firm above USD 105 levels after positive US data. From the precious metals space, gold retreated from two-week highs as the data dampened speculation the Federal Reserve would adopt fresh monetary easing measures to boost growth

Across the Globe

The US markets pared their gains in the final hour of trading yesterday but still kicked off the first day of May on a positive note, with the Dow hitting its best closing high since December 2007, fueled by a better-than-expected manufacturing report. The CBOE volatility index slipped below 17.

Dow Jones Industrial Average was up 0.5% or 65.69 points at 13279.32. Nasdaq Composite was up 0.13% or 4.08 points at 3050.44. Standard & Poor's 500 rose 0.57% or 7.91 points at 1405.82.

In Europe, Britain's FTSE, French CAC and the DAX clocked over 1% gains while Spain and Italy were was up 1.7% and 1.9% respectively.

Asian markets were trading higher with 0.5% to 1.25% gain.

F&O cues:
Total Puts adds 25 lakh shares, Total Calls adds 15 lakh shares
5000 put, 5100 put and 5600 call have the Highest OI Build up
5100 put adds 2.9 lakh (6.6%) shares in OI prem down 21%
5000 put sheds 1 lakh (2.3%) shares in OI prem down 23%
5600 call adds 88K (2%) shares in OI prem up 17%
5200 put adds 6 lakh (18%) shares in OI prem down 18%
5400 call adds 4.8 lakh (13%) shares in OI prem up 21%
Total Nifty Futures added 6 lakh shares in OI
Stock Futures adds 1.4 cr shares in OI
Nifty PCR rose to 1.12 from 1.1
Nifty May Futures are trading at 23.2 points premium v/s 20.2 points premium to Spot
India VIX closed at 17.82 up by 1.19%

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