Nifty holds on to morning gains; RIL, Bharti, Infosys lead

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At 11:32 hours IST : Nifty sees profit booking; banks, BHEL down

The market saw further profit booking led by sell-off in banking & financials, FMCG, auto (two-wheeler) and BHEL (lost 2% ahead of Q3 numbers), though it stayed in a positive terrain with moderate gains. Even Asian markets turned negative. The Sensex was up 49 points at 17,125.93 and the Nifty rose 10.55 points to 5,168.85.

"It is time to book profits and exit positions", says Ambareesh Baliga of Way2wealth, adding that buyers at these levels will be caught on the wrong foot.

"The rally could continue for a few days because of the momentum, but the correction is overdue," he adds.

Shares of country's largest lenders SBI and ICICI Bank dropped nearly 1.5%. HDFC Bank fell 0.8% and HDFC was down 1.3%.

FMCG majors ITC and HUL were down 1% and 0.4%, respectively. Rate sensitives like DLF, Bajaj Auto and Hero Motocorp went down 2% each.

However, index heavyweight Reliance, Infosys and Bharti Airtel helped the market to stay higher, rising 2%, 1.7% and 2.7%, respectively. ONGC was up 1% and L&T up 0.3%.

Shares of Sterlite Industries topped the buying list, gaining over 3% and Tata Motors jumped 2.5%. Tata Steel, M&M, Sun Pharma, Hindalco, Coal India, GAIL and Cipla moved up 1-1.7%.

The market breadth was still in favour of advances; about 1622 shares advanced while 805 shares declined on the BSE.

At 10:19 hours IST : Sensex erases some early gains; broader mkts outperform

The market erased some early trade gains due to sell-off in financials and FMCG stocks, trading off highs (of 5217). Buying in metals and technology stocks, and index heavyweights Reliance, Bharti and L&T were playing a supportive role. The Sensex was up 110.74 points at 17,187.92 and the Nifty went up 28.55 points to 5,186.85.

"We are looking better than what it did a few weeks back", says Vibhav Kapoor of IL&FS. Attributing this improvement to steadier Europe and US situations, and better-than-expected corporate earnings at home, Kapoor told CNBC-TV18 that the momentum is likely to continue.

Major largecaps like Reliance Industries, Infosys and TCS gained 1.6%. Bharti Airtel jumped 2.5% and Tata Motors was up 2%.

Capital goods majors L&T rose 0.7% while BHEL dropped 0.7% ahead of Q3 numbers.

Metals stocks have been on buyers' radar since the beginning of the year as they were beaten down last year with 47% fall. Sterlite and Hindalco rallied nearly 4%. Tata Steel was up over 2% and Coal India rose 0.8%.

In the healthcare space, Sun Pharma jumped 2.6% and Cipla went up 1%. However, Ranbaxy Labs tanked 4% as company announced court filing of consent decree with US FDA. Ranbaxy agreed to make broad changes at its plants in US & India as part of a US govt probe; US FDA said, "Ranbaxy had 'numerous problems' at its facilities in US & India."

However, HDFC and Hero Motocorp were down 1% each. ICICI Bank, SBI, ITC, HDFC Bank and Maruti fell 0.3-0.75%.

The broader markets outperformed benchmarks; the BSE Midcap Index was up 1% and Smallcap up 1.3%.

The market breadth was strong; about three shares gained for every share falling on the BSE.

At 9:19 hours IST : Nifty opens above 5200; RIL, Infy, L&T support

The Nifty opened Friday's session above 5200 mark (for the first time since November 14, 2011), suppoted by index heavyweights Reliance Industries, Infosys and L&T. However, the index came off early day's high on profit booking, led by SBI and ONGC.

The Sensex was up 121.62 points at 17,198.80 and the Nifty rose 31 points to 5,189.25.

In the frontliners, Sesa Goa rallied 3.3% on good set of numbers. NTPC and BHEL too were up ahead of numbers today.

Sterlite Industries, Hindalco, L&T, Reliance Industries and Infosys, TCS were supporting the market.

However, Ranbaxy Labs fell 5% to Rs 450 level. Maruti, PNB and Kotak Mahindra Bank too were down.

The CNX Midcap Index was up 45 points at 7,096. About three shares gained for every share falling on the National Stock Exchange.

In the second line shares, REC jumped 2% on follow up buying post better than expected results in Q3.

Results Reactions: PTC India Financial shot up 13%. Alstom Projects fell 0.5% and Tata Communications slipped 3%.

Shree Renuka, Bajaj Hindusthan and Mercator went up 2-3%.

United Spirits and Everest Kanto shot up 5% each. Petronet LNG and NHPC gained 2% ahead of numbers today.

EIH surged 7% as YC Deveshwar of ITC at Davos said, company would buy more shares of EIH.

On the global front, Asian markets were trading higher with moderate gains. The US equity markets retreated after disappointing home sales data and jobless claims.