Oct 07, 2013, 04.38 PM | Source: Moneycontrol.com

Nifty ends above 5900; Ranbaxy surges 6%, tech stocks gain

Index heavyweight ITC rebounded while financials are off day's low. Country's largest lender State Bank of India and its rival HDFC Bank fell 0.9 percent each. ICICI Bank trimmed its losses from 3.5 percent to 1.8 percent.

Moneycontrol Bureau
Live Market Commentary

3:55 pm Market closing: After a tepid session on negative global cues, the market ended on a flat down. The Sensex closed down 20.85 points at 19895.10 while the Nifty managed to end above the 5900 at 5906.15, down 1.15 points.

About 1255 shares advanced, 1077 shares declined, and 150 shares were unchanged.

Tata Steel ended with a gain of 4 percent, followed by Hindalco, TCS, Jindal Steel and BHEL. Coal India, Bharti Airtel, ICICI Bank, Maruti Suzuki and L&T were major losers in the Sensex.

3:40 pm Mangement speaks: Despite the good monsoon, power generation in the second quarter will be slightly lower than the previous year, says ABL Srivastava, Director Finance at National Hydroelectric Power Corporation. This is due to the Dhauliganga plant not being operational because of the recent floods in Uttarakhand and secondly, some power stations will generate less in Q2 since they witnessed better power generation in the second half of 2012, he says.

On NHPC buyback issue, which has garnered so much interest, Srivastava told CNBC-TV18 the ministry of disinvestment and ministry of power have been working on offer-for-sale (OFS) and that also has not been finalised yet.

He says except in case of one state electricity boards (SEB), there is no concern as far as receivables are concerned and the position is better than the previous quarter and the last six months.

3:20 pm Opinion on FMCG: The demand for the fast FMCG stocks will remain soft for the next six-eight quarters, says Sanjay Singh, Standard Chartered. He expects Q2 earnings to be in line with that of Q1 or maybe worsen a bit in terms of volume growth.

Sales growth for the sector is likely to be in the range of 9-10 percent going forward for the next five to six quarters compared to current 12-13 percent, says Singh in an interview to CNBC-TV18.

However, ITC and Britannia Industries remain his two preferred picks. Singh is neutral on Hindustan Unilever (HUL).

Don't miss: India seems set to go back to its old normal: Citi's Narain

The market seemed to gather some strength in the last trading hour of the day. Erasing early losses, the Nifty hit 5900 but is down at 7.10 points. The Sensex is down 27.73 points at 19888.22.

Index heavyweight ITC rebounded while financials are off day's low. Country's largest lender State Bank of India and its rival HDFC Bank fell 0.9 percent each. ICICI Bank trimmed its losses from 3.5 percent to 1.8 percent.

Top gainers in the Nifty are Ranbaxy Labs (up 6.5 percent), Tata Steel (up 4 percent), BPCL, Hindalco and IDFC.

Meanwhile, Brent futures edged below USD 109 a barrel on Monday as oil production resumed in the Gulf of Mexico after a tropical storm, while lingering concerns over the US government shutdown clouded the outlook for demand, reports Reuters.

Tropical Storm Karen had prompted producers to shut in nearly two-thirds of oil output in the Gulf of Mexico. But it was downgraded to a tropical depression late on Saturday, with production starting to return to normal by the end of the weekend.

European markets too are weak as the government shutdown in the US continues from the beginning of October.

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Aditya Narain of Citi tells CNBC-TV18 that the brokerage has a neutral view on banks but slow growth and asset quality pressures remain major headwinds. He also adds that PSU banks offer a better investment opportunity.

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The Nifty cracked below its 200-day moving avergae of 5840. Banking stocks are the big laggards with the Bank Nifty losing 250 points.

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Coal India, ICICI Bank, HDFC twins and Bharti Airtel are laggards while Tata Steel, Jindal Steel, Hindalco and TCS are seeing buying interest.

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The performance of our market has nothing to do with India’s fundamentals, says Viktor Shvets of Macquarie, adding, it’s more to do with bond yields in the US.

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Indian rupee fell marginally to 61.49 per dollar in early trade Monday as against Friday's closing of 61.43 per dollar.

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READ MORE ON  BSE, Sensex, NSE, Nifty, Ranbaxy, RBI, gold, dollar


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