Markets end flat on caution ahead of F&O expiry

The S&P BSE Sensex ended up 50 points at 24,486 and the Nifty50 ended up 14 points at 7,436.

Benchmark share indices trimmed intra-day gains after global crude oil prices resumed their downward trajectory after sharp gains on Friday while caution ahead of expiry of January derivative contracts capped upside gains.

The S&P BSE Sensex ended up 50 points at 24,486 and the Nifty50 ended up 14 points at 7,436.

In the broader market, the BSE Midcap and Smallcap indices were up 0.4%-1% each. Market breadth was strong with 1,693 gainers and 791 losers on the BSE.

"The volatility in global crude oil prices has increased and have started weakening agains after the sharp surge on Friday. Overall market sentiment remains weak with selling seen in mid-cap and small-caps. Further, volatility ahead of expiry of January derivative contracts has also kept investors on the sidelines," said Alex Mathews, Head of Research, Geojit BNP Paribas Financial Services.

Markets will remain closed tomorrow, January 26, on account of Republic Day holiday.

Foreign institutional investors continued to remain net sellers in equities to the tune of Rs 770 crore, as per provisional stock exchange.

The Indian rupee also trimmed early gains and was down 11 paise at 67.73 to the US dollar.

GLOBAL MARKETS

Asian stocks ended higher on Monday after global crude oil prices rebounded on expectations of demand for heating oil in wake of the cold weather conditions in the U.S. East coast. Further, investors will also await the decision by the Bank of Japan from its two-day meet which begins on Thursday, January 28. Nikkei ended up 0.9% while Shanghai Composite gained 0.8%. Among others in the region, Hang Seng ended up 1.3% while Straits Times rose 0.3%.

European shares were trading with marginal losses after opening with marginal gains after crude oil prices pared intra-day gains. The CAC-40, DAX and FTSE-100 were down 0.2% each.

SECTORS & STOCKS

BSE Metal index was the top gainer up 1.6% followed by Consumer Durables, Healthcare index up 1.1% each. On the downside, BSE Capital Goods, Power, Oil & Gas indices were the top losers.

Financial stocks were among the top gainers. HDFC Bank ended up nearly 1% after the private sector lender announced 20% growth in net profit at Rs 3,357 crore compared with Rs 2,791 crore in the same quarter last fiscal. However, gross NPAs rose to 0.97% compared with 0.91% quarter-on-quarter while net NPAs were up at 0.29% versus 0.25% quarter-on-quarter. Mortgage lender HDFC gained 1.4% and ICICI Bank closed 1.5% higher.

Pharma shares also witnessed renewed buying interest with Sun Pharma leading the gains up 2.2% followed by Dr Reddy's Labs and Cipla.

Other Sensex gainers include, ONGC, HUL and TCS among others.

Among other shares, SpiceJet surged 11% on the BSE after the company reported net profit at Rs 238 crore for the quarter ended December 2015 (Q3FY16) against a loss of Rs 275 crore in the year ago quarter. This is the fourth straight profitable quarter for SpiceJet, on the back of low fuel prices.

Supreme Petrochem soared 13% on the BSE after the company posted net profit of Rs 26 crore for the third quarter ended December 2015 (Q3FY16), due to lower raw material cost.

Kitex Garments plunged 13% after hitting a 52-week low after the company reported a single digit 4% year-on-year (YoY) growth in net profit at Rs 24 crore for the third quarter ended December 2015 (Q3), due to lower sales.

Bata India has ended 1% higher on the BSE after the company said insurance giant Life Insurance Corporation of India (LIC) increased its stake in the company via open market.