Broader markets underperform benchmark indices

The markets are trading firm in late noon trades tracking firm Asian cues. Japan's Nikkei share average jumped 4.9% on Monday, marking its biggest one-day gain since March 2011, after US jobs data eased growth concerns but was not strong enough for the Federal Reserve to scale back massive stimulus.

Meanwhile, the rupee today fell by a whopping 71 paise to hit a new life-time low of 57.77 in the late morning trade on persistent dollar demand from importers and banks amid the US currency gaining overseas.

The Sensex is up 104 points at 19,533 and the Nifty is higher by 29 points at 5,910. The broader markets are, however, underperforming the benchmark indices.

The BSE mid-cap index has slipped 0.41% or 6,362 and the small-cap index is down 0.13% or 8 points at 5,955.

Opto Circuits (India) is the top loser from the mid-cap pack. The stock has slumped 25% to Rs 21.50 on back of heavy volumes on the bourses. The stock opened at Rs 29.45 and hit a 52-week low of Rs 20.15 on BSE.

The stock of medical equipment maker has tanked 52% in past seven trading sessions after reporting a sharp 94% year-on-year (yoy) drop in consolidated net profit at Rs 12.3 crore for the quarter ended March 2013 (Q4).

Jet Airways India has dipped 10% to Rs 410 ahead of regulatory meet to decide on approval for Jet’s stake sale to Gulf carrier Etihad Airways.

The Foreign Investment Promotion Board (FIPB), headed by Economic Affairs Secretary Arvind Mayaram, on Tuesday will take a call on the Rs 2,000 crore Jet-Etihad deal, the largest foreign investment in the Indian aviation sector, the PTI report suggests.

Educomp Solutions has dipped 5% to Rs 38.85, also its 52-week low on the Bombay Stock Exchange (BSE). The stock has underperformed the market by falling 38% in past eight trading sessions on BSE compared 3.3% fall in benchmark index Sensex after reporting disappointing fourth quarter results.

Other key losers from the Midcap segment are Monnet Ispat & Energy, CORE Education & Technologies, Jain Irrigation Systems, Lanco Infratech, Jindal Saw, Indian Hotels Co and Muthoot Finance, all declining between 4-9%.

On the other hand, Cinemax India is locked in upper circuit of 10% at Rs 125 on BSE on merger with the multiplex chain operator PVR.

The overall breadth of the BSE mid-cap index remains weak as 150 stocks are declining while 88 are advancing.

According to Nandish Patel, Derivative Analyst, Sharekhan, “As mentioned earlier overall IT stocks are looking extremely positive. HCL Tech is looking good for 2-3 days. One can buy HCL Tech Call option strike 760 @ 16 with Sl of 12 & Targets of 20-25. Sharp selling was seen in Titan from the levels of 300. Aggressive short position has seen adding on rise. However, 260 is the good levels to watch on lower side & I think there will be a technical bounce or some short covering in Titan.”