Indices post modest gains amid mixed global cues; Ultratech Cement up 3%

Benchmark indices Sensex and Nifty edged higher on Monday following gains in IT, energy and auto stocks amid a firm trend in European markets.

In a largely range-bound session, the 30-share BSE Sensex ended 85.88 points or 0.14 per cent higher at 61,308.91. As many as 19 of Sensex stocks advanced while 11 declined.

The broader Nifty rose by 52.35 points or 0.29 per cent to 18,308.10 points as 34 of its components advanced. Nifty opened flat, fell in the early trade and kept bouncing up from intraday falls before closing in the green.

Ultratech Cement was the top gainer in the Sensex pack, surging by nearly 3 per cent. The cement major announced nearly 8 per cent growth in its third-quarter net profit at Rs 1,710.14 crore. It also announced a capex plan of Rs 965 crore for its modernisation and to almost double the production capacity of its white cement brand Birla White.

Mahindra & Mahindra rose by 2.19 per cent, Maruti Suzuki by 2.08 per cent, Tata Steel by 1.35 per cent, TCS by 1.26 per cent, L&T by 1.2 per cent, SBI by 1.14 per cent and HUL by 1.04 per cent. Gains in Reliance Industries and Bharti Airtel also helped the index close in the green.

On the other hand, HCL Tech, HDFC Bank, Axis Bank, Tech Mahindra, PowerGrid, and Sun Pharma were among the laggards, falling up to 5.89 per cent.  “In a week guided by the release of various corporate earnings, domestic indices edged higher on a flat note led by consumer durables, energy and auto stocks,” Vinod Nair, head of Research at Geojit Financial Services, said.

"Asian markets were largely mixed post the release of China's 4th quarter GDP data reporting an expansion of 4 per cent YoY as covid restrictions and property woes hit demand. Rising Covid cases globally continue to colour investor sentiments," Nair added.

Narendra Solanki, Head- Equity Research (Fundamental), Anand Rathi Shares & Stock Brokers, said that during the afternoon session, markets showed some strength and traded in positive territory as traders were getting relief, as foreign portfolio investors (FPIs) reversed the three-month selling streak in January by investing a net Rs 3,117 crore in Indian markets.

However, the gains were capped during the day due to subdued performance by financials, IT and healthcare.

The BSE Midcap index rose by 0.23 per cent while the Smallcap index advanced by 0.61 per cent.

Among sectoral stocks, BSE Auto spurted by 1.98 per cent, BSE Utilities by 1.51 per cent, BSE Power by 1.41 per cent, BSE Realty by 1.37 per cent and BSE Consumer Goods by 1.02 per cent.

On the other hand, BSE Healthcare dropped by 0.76 per cent, BSE Bankex by 0.33 per cent and BSE Finance by 0.18 per cent.

"Auto stocks shined in a flat trading session on the back of price hikes, thrust on electric vehicles and ETF launches in the sector as the basket of stocks posted smart gains. The Commodity Index provided good support in afternoon trade buoyed by earnings," S Ranganathan, Head of Research at LKP Securities, said.

The market was largely positive as 2,297 stocks out of 3,739 trading scrips advanced while 1,308 stocks declined and 134 remained unchanged on BSE. The turnover in the equity segment was Rs 5,484.11 crore.

Elsewhere in Asia, bourses in Shanghai and Tokyo ended up, while Hong Kong and Seoul closed in the red. Stock exchanges in Europe were trading with gains in mid-session deals.

Asian share markets were mixed on Monday as a slew of Chinese economic data confirmed the deadening effect of coronavirus restrictions on consumer spending, prompting Beijing to again ease monetary policy. European stock markets opened higher on Monday as investors look past concerns about looming US interest rate hikes and China's slowing economy, Jasani, Head of Retail Research, HDFC Securities, said.

Meanwhile, international oil benchmark Brent crude slipped 0.26 per cent to USD 85.84 per barrel.

The rupee slipped by 10 paise to close at 74.25 against the US dollar.