Sensex moderately up; railway stocks derail

The BSE Sensex continued to trade with moderate gains after shedding more than 150 points gains from day's high of 18040 level due to higher than expected inflation in February. Index heavyweights Reliance Industries and TCS weighed down the market.

The BSE benchmark was up 35.5 points at 17,849.10 and the NSE benchmark rose 12 points to 5,441.55.

Railway stocks slipped further during the Railway Budget announcement. Stone India, Titagarh Wagons and Texmaco tanked 3.5%. Kalindee Rail fell 2.7% while Hind Rectifiers and ConCor were down over 1%.

Shares of oil & gas producer and India's most valued stock Reliance Industries dropped 1.4%. TCS, country's No. 1 software services exporter tumbled 3%.

However, ICICI Bank, L&T and M&M gained more than 2%. ITC, Tata Motors, Hindalco, NTPC and Tata Power were up 1-1.5%.

The market breadth turned in favour of declines; about 686 shares advanced while 716 shares dropped on the National Stock Exchange.

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At 11:53 hours IST: Feb inflation spikes, Sensex sheds gains; rail stock down

The BSE Sensex shed more than 150 points from intraday high 18,040.69 after slightly higher than expected inflation data for February. It seemed to be easing hopes of rate cut in the upcoming RBI's monetary policy review.

The BSE benchmark rose 52 points to 17,865.51 and the NSE benchmark gained 16.65 points at 5,446.15.

Inflation for the month of February came in at 6.95% while CNBC-TV18 had expected at 6.75%. Primary article inflation increased at 6.28% versus 2.25% month-on-month basis while WPI manufacturing products inflation declined at 5.75% versus 6.49% and fuel inflation too fell at 12.83% versus 14.21%.

Shares of index heavyweight and oil & gas producer Reliance Industries fell over 1%. TCS, country's largest software services exporter tanked more than 3%.

Housing financing company HDFC too declined over 1% on profit booking.

Shares of Wipro lost 1.3% as Azim Premji Trust will sell 3.5 crore equity shares via auction today.

However, country's largest private sector lender ICICI Bank rose 2% while rival SBI gained 0.6%. Capital goods major Larsen & Toubro went up 1.8%.

Railway stocks slipped on profit booking ahead of Railway Budget 2012-13 announcement. Stone India, Titagarh Wagons, Texmaco and Kalindee Rail were down 1-3.6%. 

At 11:12 hours IST: Sensex off day's high ahead of inflation; Texmaco up 5%

The BSE Sensex was off day's high ahead of February inflation data, though it stayed higher led by strong global cues. Railway stocks were higher ahead of Railway Budget 2012-13; Kalindee Rail Nirman, Texmaco Rail, Kernex Microsystems and Gateway Distriparks were up 1-2.5% while Stone India fell 1.8%. Texmaco shot up 5%.

Inflation is the last major data point that comes out before the crucial credit policy on Thursday. A CNBC-TV18 poll sees February inflation at 6.75%, which is slightly higher than 6.56% in January. The Reserve Bank will watch this number very crucially.

The BSE benchmark rose 118 points to 17,931.74 after losing more than 100 points from day's high. Meanwhile, the NSE benchmark gained 37 points at 5,466.45.

M&M, ICICI Bank, L&T, Tata Motors, IDFC and Tata Power were top gainers among largecaps, rising 2-2.8%.

However, shares of TCS extended fall due to appreciating rupee; the stock was down 2.7%. Indian rupee moved up by 6 paise to 49.87 a dollar.

Jaiprakash Associates, Wipro, Reliance Power and HDFC were down 1% each.

Advancing shares outnumbered declining by 1424 to 1002 on the BSE.

In the second line shares, Apollo Hospital, Financial Tech, Sadbhav Engg, BASF and Patni Computer gained 4-6% while Manappuram Finance, Vaarad Ventures, HDIL, Godrej Industries and Indiabulls Real lost 2.5-5%.

At 10:20 hours IST: Sensex up over 150 pts; Kalindee Rail, Kernex Micro gain

The BSE Sensex erased some gains due to somewhat profit booking and further fall in TCS and Wipro, but it is still near to 18000 level. The Nifty was tad away from 5500 level. Banks, metals, FMCG, capital goods and power stocks continued to support the market.

The market, Sudarshan Sukhani of s2analytics.com finds is in a cheerful mode so the important point is to remain long partially.

In the very short-term, according to him, upside targets are a test of 5,630 but it