Sensex, Nifty consolidate; Midcap outperforms, banks rally

Moneycontrol Bureau12:59 pm Market Update: Equity benchmarks remained in a consolidation mode today with the Sensex rising 25.83 points to 24642.80 and the Nifty climbing 11.15 points to 7500.25.About 1471 shares advanced against 920 declining shares on the BSE.Japan's Nikkei snapped four-day losing streak to end up 1 percent while major Asian markets are shut today for the Lunar New Year Holidays.12:50 pm Earnings: Ipca Laboratories disappointed analysts with its third quarter earnings on Monday. Profit declined 44 percent year-on-year to Rs 23.18 crore and revenue slipped 7.6 percent to Rs 684.11 crore during the quarter, hit by exports.

Operating profit (earnings before interest, tax, depreciation and amortisation) in October-December period dropped 26 percent to Rs 89.25 crore and margin contracted by 331 basis points to 13.05 percent compared to corresponding quarter of last fiscal despite fall in raw material (down 8.4 percent) and other expenses (down 8 percent).12:40 pm Interview: Security software firm Quick Heal Technologies, which opened its Rs 450 crore initial public offer (IPO) today, will invest part of the sum it intends to raise from capital markets into technology, capital expenditure and advertising, which it hopes will help it improve its margins, MD and CTO Sanjay Katkar told CNBC-TV18 in an interview.

The company, which is coming out with a fresh share issue of Rs 250 crore along with an offer for sale of roughly Rs 200 crore, has said investments have led to the firm's EBITDA margins falling from a lucrative 51.3 percent to 32 percent in FY15.

The company notched up sales of Rs 286 crore in FY15, and in the first half of FY16, it had sales of Rs 148 crore. But Katkar said the company was confident of maintaining its 17 percent revenue growth rate, adding that the cyclicality will help lift revenues in the second half.12:20 pm Dr Reddy's in News: Drug major Dr Reddy's Laboratories (DRL) said its US subsidiary Promius Pharma has received USFDA approval to market Sernivo spray, used in treatment of skin disorder. In a BSE filing the company said: "Its US subsidiary, Promius Pharma, LLC, US has received approval for Sernivo Spray, 0.05 per cent from the US Food and Drug Administration (FDA). Sernivo Spray, a prescription topical steroid, is indicated for the treatment of mild to moderate plaque psoriasis in patients 18 years of age or older." The company added the commercial launch of the product is planned for the coming quarter.Also read - MIP 'gamechanger' for steel but weak demand a question12:00 pm Market Check

Equity benchmarks continued to consolidate but the broader markets outperformed benchmarks. The Sensex fell 2.83 points to 24614.14 while the Nifty gained 0.65 points to 7489.75.

The BSE Midcap and Smallcap indices climbed nearly 1 percent each. The market breadth remained positive as about 1397 shares advanced against 850 declining shares on the BSE.

Banks stocks continued to lead markets with ICICI Bank, SBI and Axis Bank rising 2-4 percent while HDFC Bank declined 0.6 percent. Infosys, TCS, Tata Motors, Dr Reddy's Labs and ONGC slipped 1-2 percent.

Crude oil futures inched up in thin trade as many Asian markets were on holiday for Lunar New Year, with few trading cues expected until Federal Reserve Chair Janet Yellen gives testimony to lawmakers later in the week. Global benchmark Brent futures rose nearly 1 percent to USD 34.38 a barrel and Nymex crude climbed 0.9 percent to USD 31.17 a barrel.