Broader Markets outperform; IRB Infra up 7%

The broader markets are outperforming benchmark indices, rising nearly 0.7% on Thursday as investors turn their focus on fundamentally sound mid-cap and small-cap stocks, which have surged on strong quarterly results.
 

At 11.25 AM, BSE Midcap and BSE Smallcap indices are up 0.7% each. However, the 30-share Sensex is up 10 points or 0.04% at 26,098 and the 50-share Nifty is down 6 points or 0.08% at 7,785.
 

Torrent Pharmaceuticals is trading 3% higher at Rs 760 after reporting a robust 72% year-on-year (yoy) jump in net profit at Rs 256 crore for the quarter ended June 30, 2014 (Q1), on back of strong operational performance. The drug maker had profit of Rs 149 crore in a year ago quarter.

 

IRB Infrastructure has surged 7% to Rs 255 on National Stock Exchange after reporting 12% year-on-year (yoy) growth in consolidated net profit at Rs 150 crore for the quarter ended June 30 2014 (Q4), driven by strong operational performance. The infrastructure development and construction company had profit of Rs 135 crore in the same quarter last fiscal.

 

Talwalkars Better Value Fitness has surged 13% to Rs 235 on reports that British health and fitness group David Lloyd is buying around 20% stake in Mumbai-based the health fitness chain.

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(updated at 11.25 AM)
Markets are trading in the negative territory during the early trades as investors turn cautious ahead of the expiry of July series derivative contracts slated today. In addition, rupee movement will be keenly observed by the market participants after the U.S. Federal Reserve gave no indication that it would change course anytime soon.

 

At 9.50 AM, the Sensex is down 27 points at 26,060 and the Nifty has lost 13 points to trade at 7,778.

 

The broader markets are outperforming the benchmark indices. Both the mid and smallcap indices are up 0.4% each.

 

Global Markets

 

The S&P 500 and Nasdaq ended higher on Wednesday after the Federal Reserve gave a rosier assessment of the U.S. economy while reaffirming that it is in no hurry to raise interest rates.

 

The Dow Jones industrial average .DJI fell 31.75 points, or 0.19 percent, to 16,880.36, the S&P 500 .SPX gained 0.12 points, or 0.01 percent, to 1,970.07, and the Nasdaq Composite .IXICadded 20.20 points, or 0.45 percent, to 4,462.90.

 

The S&P 500 had traded lower ahead of the Fed announcement.

 

Asian markets are trading mixed on Thursday following robust US economic data and as investors braced for Argentina to default on its debt for the second time in twelve years.

 

Sectors & Stocks
 

On the sectoral front, BSE Metal index is leading the rally followed by Oil & Gas, Realty and Capital goods indices. 

However, BSE Power, IT, Teck indices are losing sheen. BSE Bankex, Auto and Healthcare indices are trading flat.

 

Fresh buying is visible in the metal pack with Sesa Sterlie, Tata Steel, Coal India up between 0.5-1.5%. Hindalco is marginally in green.

 

Maruti Suzuki is trading higher ahead of the quarterly results due later during the day, up 0.7%. hero Motocorp is up 0.5%

 

L&T which dipped nearly 7% yesterday after posting the quarterly results is witnessing fresh buying during the morning trades and is up 0.7%

 

Oil and Gas stocks are trading in the positive territory. Oil and Gas major  RIL is up 0.4%. Reliance Industries Ltd (RIL), is open to offloading up to 30 per cent stake in its telecom venture, Reliance Jio, to a global strategic partner. ONGC and GAIL are up 0.2%.

 

Tobacco-to-hospitality giant ITC wants presence in new business segments such as fruit juices, tea & coffee, chocolates and is up 0.3%.

 

On the flip side, IT shares Wipro, TCS and Infosys are trading are down between 0.1-1%

 

In the Pharma space, Dr Reddy’s Lab, which gained yesterday after posting strong results , is down 0.5%.  Sun Pharmaceutical Industries and Ranbaxy Laboratories might have to let go some of their products to secure the competition watchdog Competition Commission of India’s (CCI) approval for the proposed combination of the country’s two leading drug makers. Sun Pahrma has lost 0.5%. However its peer Cipla is up 0.5%.

 

The financial space is trading weak with HDFC twins, Axis Bank and ICICI bank down between 0.1-1%

 

Bharti Airtel which surged yesterday on robust earnings result is down 0.2% on profit taking.

 

Tata Power, NTPC and BHEL are some of the prominent names in red.

 

Among other shares, HCL Technologies is trading 1.5% lower at Rs 1,574 on National Stock Exchange (NSE), after reporting 13% quarter-on-quarter (q-o-q) growth in its consolidated net profit at Rs 1,834 crore for the fourth quarter ended June 30, 2014 (Q4).

 

The market breadth is positive on the BSE with 941 shares advancing and 634 shares declining.