IT, metal shares gain as markets open higher

Weakness in banking however weighs on sentiments, all major bank stocks in red

Markets opened marginally in green, but weakness in banking shares dragged it into the negative zone, minutes after opening. The BSE Sensex is trading flat at 19,580. Nifty is down 7 points at 5,937.

Trend in global equities is likely to set the tone for Indian markets this week. At the domestic level, the investors will closely watch the industrial production data for March on Friday and results of key companies this week.

Globally, Euro-zone retail sales and ECB President Draghi’s speech (Monday), China’s consumer price index and Bank of England’s interest rate decision (Thursday) will be crucial triggers.

Asia stock markets rallied in early Monday trade, taking cues from U.S. equities’ strong performance at the end of last week, along with accompanying gains for commodities. Hang Seng and Shanghai Composite were up neraly a per cent each this morning. Nikkei remained shut for a public holiday.

Technical analysts expect the Nifty to move in a tight range of 5,850– 6,050 levels, with action in specific mid-cap stocks. “This Parliament session has been an absolute washout. The Finance Bill had to be passed, but the other bills like the Food Security Bill, the Insurance Bill are still awaiting conclusion. Now, the talk is that the Land Acquisition Bill will be cleared through an ordinance,” said Amish Munshi, Senior Fund Manager, Tata Asset Management.

Metal and technology shares have opened in the green, as are cement shares - ACC and Ambuja Cements. BSE metal index is up 1.36% at 8906. IT index has amanged to gain 1.3% as well to 5881.

Meanwhile, BSE bankex has slipped 1% to 14,015. Banking shares continued to show weakness after the RBI cut key rates by 25 bps points on Friday. Other rate sensitives - auto and realty traded on a flat note in opening deals.

TCS is the key gainer - up 2% at Rs 1,446. Infosys and Wipro are up 1% each. From the metal space, Tata Steel, Hindalco and Sterlite are leading the rally.

Market heavyweight - Reliance is up 1% at Rs 808. Bharti has gained 1% as well.

On the other hand, SBI, ICICI Bank and HDFC Bank are down 1-1.5% each.

Among individual stocks, Spice Jet as added 6% to Rs 42.95, as ace investor Rakesh Jhunjhunwala and his wife Rekha picked up 25 lakh shares in the airline nearly Rs 10 crore.

ACC and Grasim Industries will react to their March quarter numbers announced last week. The shares are marginally in green.

BSE market breadth is positive. Out of 1,154 shares traded, 682 shares have advanced while 423 shares have declined in trades.