Market treads cautiously; Sensex up 20 points, Nifty at 6,660

Investors booked profits at higher levels in wake of impending market volatility ahead of poll results

It was yet another day of lackluster trades at the D-street as investors booked profits at higher levels ahead of impending poll-related market volatility. Volatility is likely to increase post exit poll results on May 16, say analysts

The market ended almost flat as gains in heavyweight banking stocks such as ICICI Bank, Axis Bank and State Bank of India were offset by losses in ITC, Sun Pharma and Sun Pharma.

The 30-share Sensex ended 20 points higher at 22,344 levels after trading in a 216-point range of 22,227-22,443 and the 50-share Nifty closed 7 points higher at 6,660 after trading in a 50-point range of 6,638-6,688.

"Investors are cautious ahead of a crucial event that occurs once in every five years. It was seen in 2004 and 2009 that actual poll outcome was different than what was being largely anticipated and market hit circuit limits on both occasions. Investors anticipate an NDA-led victory this time, failing which a massive correction is expected. So, they are extremely cautious this time ahead of May 16 and instead booking profits at higher levels now when they still can," said  A K Prabhakar- independent market analyst.

There were some pockets of action despite an overall lull in market. A spate of earnings results released, kept individual counters buzzing.

Pharma major Lupin slipped 2.4% at Rs 979.30, falling nearly 6% from its record high of Rs 1,023 touched on the NSE on Wednesday, on profit booking.

The pharmaceutical company has reported a 35% year-on-year (yoy) growth in net profit at Rs 550 crore during the quarter ended March 2014 (Q4FY2014) on account of strong operating performance. During the quarter, the company posted a revenue growth of 20% yoy at Rs 3,052, mainly driven by exports.

Union Bank of India shed a whopping 8.5% at 135.25 on the NSE after releasing its fourth quarter results for the financial year 2014.

The public sector lender posted 26.65% drop in net profit at Rs 578.96 crore in the fouth quarter ended March 2014, on sharp rise in provision for stressed assets and fall in non-interest income.

Its net profit for Q4 of 2013-14 was Rs 789.38 crore and gross non-performing assets stood at 4.08% in March 2014, up from 2.98% a year ago.

The bank would bring down gross NPAs to 3.75% by March 2015, Tiwari said. The bank restructured assets worth Rs 1, 435 crore in Q4. The outstanding restructured loan book was Rs 15,000 crore. The restructuring in pipeline is about 1, 700 crore for FY 15. Its capital adequacy was 10.80%, with tier I of 7.54%, at the end of March 2014. It expects deposits to grow by 9-10%.

Among sectors, BSE consumer durables and Bankex were top sectoral gainers, while Realty was the top loser.

BSE IT stocks recovered marginally after yesterday’s carnage even as rupee strengthened to its one-month high levels of 59.95 hit in early trade. It is currently trading at 60-a-dollar mark.

In broader markets, BSE mid-cap and small-cap indices closed flat to negative.

Market breath was weak, with 1407 stocks endimg with losses as compared to 1,322 stocks that ended with gains.

Other stocks

Shasun Pharmaceuticals closed almost 8% higher at Rs 161.85 on the BSE after reports emerged that Morgan Stanley Asia  bought nearly one per cent stake in the company for a total consideration of Rs 5.9crore.

Procter & Gamble Hygiene and Health Care (P&G) surged 5% to Rs 3,607 after reporting a strong 55% year-on-year (yoy) jump in net profit at Rs 80.76 crore for the quarter ended March 31, 2014 (Q3), on the back of higher sales. The personal care products maker had reported a profit of Rs 52.09 crore in the same quarter a year ago.

Global markets

Asian shares got support on Thursday from U.S. Federal Reserve chief Janet Yellen's dovish comments and upbeat Chinese trade data that suggested some signs of stabilisation in the world's second-largest economy.

Globally, investment sentiment improved as tensions in Ukraine eased after Russian President Vladimir Putin called on pro-Moscow separatists to postpone a secession vote.

Japanese Nikkei 225 share average added 1.1 percent while MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.5 percent, inching away from five-week lows hit on Wednesday.

Chinese exports rose 0.9% in April from a year earlier, beating expectations of a 1.7% decline, while imports also overshot economists' estimate.