Market edge higher; Defensive sectors gain

Broader markets drop nearly 0.5%, under-performing benchmark indices

Market edged higher in late-afternoon session this Tuesday led by buying in defensive sectors such as consumer goods and pharmaceutical, however, trading was lacklustre as investors remained on the side-lines in a holiday truncated week coupled with derivative contracts expiry on Thursday.

Indian stock markets will remain shut on Wednesday and Friday this week on account of Holi and Good Friday.

Trading was also on a cautious note on brewing concerns over the fate of Congress-led UPA government amid lack of support from its key political allies.

At 2PM, the Bombay Stock Exchange's 30-share index Sensex rose 50 points and at 18,731 while the National Stock Exchange's 50-share Nifty gained 13 points at 5,646.

Global risk appetite also remained frail with traders in most part of the region treading cautiously amid renewed worries about the financial situation in the eurozone following the bailout plan for Cyprus..

Japan's Nikkei ended down 0.6% to 12,472, Strait Times added 0.55% to 3,285, Hang Seng gained 0.27% to 22,311 while Shanghai dropped 1.25% to 2,297.

Meanwhile, European shares gained ahead of U.S. data that may show durable-goods orders increased and new-house sales held close to a four-year high last month.


France’s CAC gained 0.22% to 3,736, Germany’s DAX rose 0.27% to 7,892 and UK’s FTSE was up 0.23% to 6,393.

Back home, real-estate, capital goods, oil & gas, metals, power sectors dropped while consumer durables, FMCG, technology, auto indexes were among the gainers on BSE.

Among individual stock movers, Sunteck Realty is the top loser from the Midcap space, down almost 6%. India Tourism Development Corporation, Aurobindo Pharma, Tata Teleservices (Maharashtra), Delta Corp and Housing Development & Infrastructure have slipped between 4-5%.


Shares of select public sector undertaking (PSU) banks have fallen up to 4% in early noon deals after global rating agency Moody’s downgraded its Standalone Bank Financial Strength Rating (BFSR) for three public sector banks on concerns of falling asset quality, pressure on profitability and capital generation.

Among the individual stocks, Syndicate Bank is down almost 4% at Rs 108 on BSE, while Indian Overseas Bank and Oriental Bank of Commerce are down by 3% each at Rs 64 and Rs 232 respectively.

Share of Pantaloon Retail has declined after the announcement that L&T General Insurance will be merged with Future Generali Insurance.


Pantaloon Retail shares declined 1.7% and were trading at Rs 143.60. However, L&T Finance Holdings shares rose 2.45%.

Colgate-Palmolive (India) has dipped over 3% at Rs 1,239 after the company said it plans to sell a division to a unit of its holding company, U.S.-based Colgate Palmolive Co., for a total consideration of Rs 59.89 crore.

Shares in Tech Mahindra Ltd fall 1.9%, while Satyam Computer Services Ltd drops 1.6%, a day after the companies said a long-planned merger between the two had been delayed by an additional six months up to September 30.

On the gaining side, Balmer Lawrie & Company is trading higher by 3% to Rs 615 on the Bombay Stock Exchange (BSE) ahead of its board meeting today to consider a maiden bonus issue proposal.


Shares in Wockhardt Ltd gain 2% rupees after Bank of America-Merrill Lynch initiates coverage on the stock with a "buy" rating and a target price of 2,565 rupees.

Morgan Stanley upgrades Reliance Communications Ltd to "equal-weight" from "underweight," citing improving outlook for the telecoms sector due to higher tariffs, falling capex, and "more attractive" valuations.

The broader markets dropped with mid-caps and small-caps shedding 0.1-0.5% on BSE.

The market breadth was negative. Out of 2,690 stocks traded, 1,432 stocks declined compared to 1,141 advances on BSE.