Sensex, Nifty hold gains ahead of Rail Budget; metals weak

Moneycontrol BureauLive Market Commentary

11:50 am Buzzing: Shares of OnMobile Global rose 13.5 percent intraday on Wednesday on its fund raising plans. The mobile value-added solutions provider OnMobile is planning to raise Rs 47.6 crore through an open offer by diluting 10.03 percent stake. "The voluntary open offer for acquisition of up to 11,900,000 equity shares represents 10.03% of the total fully diluted voting share capital from the public shareholders of OnMobile Global," the company said. The offer price has been set at Rs 40 per share, adding up to Rs 47.60 crore, it added.

11:40 am Market expert views: Sandeep Shenoy of Anand Rathi Financial Services believes Nifty will continue to be rangebound for time being and will see support between 5900 and 6000 on the downside.

"If you look at the volatility, it is going to be accentuated more and more. We are foreseeing that the more safer sectors to remain in and the numbers flow have borne out that fact - IT definitely remains and healthcare is slowly and steadily exhibiting much more stability than what people envisaged it to do," he said.

11:30 Rail Budget expectations: Titagarh Wagons’ vice-chairman Umesh Choudhary does not expect path-breaking announcements from the Interim Railway Budget, to be presented today.

“We are hoping to see some initiatives towards the projects that have already been announced… big-ticket projects like the dedicated freight corridor, although we have seen some momentum, but they need to be implemented in a more time-bound fashion,” he told CNBC-TV 18.

He said the industry would definitely like to see some announcements aimed towards the growth of railway traffic.

He thinks that there’s a little possibility of reducing passenger rail fares, but feels that Railway Minister Mallikarjun Kharge may introduce variable passenger component.

11:20 am Poll: Cipla will announce its third quarter (October-December) earnings today. Analysts feel coming quarters of the company are expected to be challenging due to pricing policy in domestic market and increasing pressure on PAT due to ongoing business transition.

Two factors to watch for are launch of inhalers in Europe and improvement in profits of Cipla Medpro.

Don't miss: Rail stocks up ahead of Mallikarjun Kharge's budget speech

The market is holding on gains with the Nifty above 6100, up 40.70 points at 6103.4. The Sensex is up 147.29 points at 20510.66. About 1191 shares have advanced, 741 shares declined, and 106 shares are unchanged.

Shares of rail stocks are rallying ahead of interim Rail Budget. Shares of Kalindee Rail Nirman (Engineers), Texmaco Rail and Engineering, Kernex Microsystems (India), Titagarh Wagons jumped 2-4 percent intraday.

Railway Minister Mallikarjun Kharge is likely to announce new trains and some measures for providing better amenities at stations and trains besides steps to strengthen safety for passengers.

GAIL, ICICI Bank, BHEL, Reliance and Sun Pharma are top gainers in the Sensex. Among the losers are Tata Steel, Coal India, Sesa Sterlite, Hindalco and Cipla.

Asian markets trade higher tracking gains in US equities. Markets are also reacting to the Chinese trade data which recorded a trade surplus of USD 31.86 billion higher than estimates of USD 27 billion.

Gold futures rose for a fifth straight session while Nymex futures ended lower, unable to sustain above USD 100/bbl.

The market is expecting bunched up dollar inflows post the bank strike. Bonds are trading flat from yesterday's closing level of 8.74 percent.