BSE Sensex gains; tech drags, Cipla & DRL up over 2%

Moneycontrol Bureau Live Market Commentary

2:55 pm Technology test: Slipping 1 percent each, TCS and Infosys are biggest losers among the IT stocks.

2:53 pm Corporate talk: Rajiv Bajaj, MD of Bajaj Auto told CNBC-TV18, "Bangladesh and Sri Lankan markets continue to underperform. I don’t see growth in these markets right now. EBITDA margins will be maintained at 20 percent."

"Exports contribute at 33% of total revenue. Bajaj Auto is optimistic of maintaining double digit exports growth. The company continues to gain market share at retail level. " he added. On 3-wheelers, he expects 10-12 percent growth in this segment going forward.

2:50 pm Big mover: Tecpro Systems jumped 16.16 percent to Rs 85.90 on BSE as the firm entered into a license agreement with a wholly owned subsidiary of Mitsubishi Heavy Industries for manufacturing of electrostatic precipitator.

2:43 pm Market check: The Sensex is up 69.33 points at 20282.29, and the Nifty up 33.20 points at 6179.95. About 1141 shares have advanced, 1212 shares declined, and 169 shares are unchanged.

2:39 pm Buzzing now: JM Financial  jumps 17.73 percent at Rs Rs 23.90 on the BSE.

2:35 pm  Energy earnings: Vedanta Resources today reported a 21% increase in its core profits at USD 4.888 billion for the year ended March, 2013. The natural resources giant, whose most of the operations are in India, had reported $4.026 billion core profit or EBITDA (earnings before interest, taxes, depreciation and amortisation) in 2011-12. Its revenues rose by 7% to USD 14.989 billion in the last fiscal vis-a-vis USD 14.005 billion of FY12, it said in a statement.

2:30 pm Precious metal: Gold demand in India, the world's largest consumer, rose by 27% to 256.5 tonnes in the first quarter of 2013, World Gold Council (WGC) said on Thursday. The demand for the precious metal stood at 202.1 tonnes in the same quarter last year, it said.

2:23 pm Market Check: The Sensex is up 43.33 points at 20256.29, and the Nifty is 24.50 points at 6171.25.

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2:03 pm Earnings: Bajaj Auto's March quarter earnings were in-line with estimates: Its net profit was at Rs 766 crore compared to CNBC-TV18 poll of Rs 709 crore. Revenues were at Rs 4990 crore.

After hitting 30-month highs in early trade, the Nifty cooled off but held above 6150. At 13.58 hrs IST, the Sensex was up 18.36 points at 20231.32, and the Nifty gained 18.40 points at 6165.15.

Realty, banking, capital goods, oil and gas were supporting the index.

Cipla's acquisition of South Africa-based pharma company Cipla Medpro is likely to boost its Africa business revenue by 2-3 percent, a top company official said on Thursday. Cipla Medpro South Africa had informed the Johannesburg Stock Exchange on Wednesday that Cipla's offer had been approved by 99.7 percent of its sharehodlers. The stock was up 3.1 percent, the biggest gainer in the Sensex.

Other gainers were Dr Reddy's Lab, RIL, SBI and ICICI Bank.

Meanwhile, technology, auto and FMCG stocks were growing weak. ITC (down 2.2 percent), Infosys, TCS, Tata Motors and Jindal Steel were the losers in the Sensex.

Orchid Chemicals stock was reacting negatively (down 4.2 percent) after posting a loss of over Rs 130 crore in March quarter versus a profit of Rs 20 crore year-on-year. Margins have cracked to around 5 percent from 18 percent. In a surprising move, the company has decided to not give guidance this quarter.