Markets gain after a flat start; WPI data eyed

Markets turned positive with the Sensex up 62 points at 19,753 and the Nifty gained 20 points to trade at the 6,000 levels. The gains were led by IT and Oil & Gas heavyweights. Also, traders will be eyeing the wholesale price index (WPI) data due later in the day.

All the sectoral indices were in the green except FMCG and Consumer Durables.

Bajaj Auto, Tata Steel, BHEL, Tata Power, HDFC Bank and ITC down 0.3-0.9% were the only losers among the Sensex-30 stocks.

Among other stocks, Zydus Wellness rallied 9% to Rs 540, extending its previous day’s 6% gain, on reporting a healthy 59% year-on-year  jump in its consolidated net profit at Rs 37 crore for the fourth quarter ended March 31, 2013 on the back of strong revenue growth.

Aptech surged 7% to Rs 62.40 after its board approved the buyback of company’s equity shares at maximum price of Rs 82 per share from the open market.

Amara Raja Batteries tanked 10% to Rs 253 on NSE after reporting a marginal 2.2% year-on-year rise in net profit at Rs 59.60 crore for Q4.
___________________
(Updated at 0942 hrs)
After opening marginally higher, the markets slipped into the red with the Sensex down 25 points at 19,667 and the Nifty shed seven points to trade at 5,973. The weakness was mainly on the back of declines in auto and financials.

Yesterday, the markets ended over 2% down, amid profit taking after sharp gains last week, after data showed the country's trade deficit had widened in April, led by higher gold imports, raising worries about the Centre's ability to control the current account deficit.

In the broader markets, the mid and smallcap indices were trading flat with a positive bias.

On the domestic front, traders will also be eyeing the wholesale price index (WPI) data due later in the day today.

Overnight, US stocks paused from last week’s record high closings and European shares edged off five-year highs after renewed concerns banks sparked profit-taking in the second best-performing sector of the past month.

Asian shares paused from selling on Tuesday, while the dollar was underpinned by better-than-expected US retail sales suggesting a steady recovery in the world’s largest economy. MSCI's broadest index of Asia-Pacific shares outside Japan was little changed while Nikkei stock average was up 0.2%.

Among the sectoral indices, Metal, Capital Goods, Auto and Consumer Durables started in the negative, losing 0.2-0.6%. Meanwhile, Health Care, IT, Oil & Gas, Realty and Power indices gained 0.3-1% in morning trades.

The top gainers among the Sensex-30 were Dr Reddys Lab, Bharti Airtel,Gail India, TCS, Sun Pharma and Coal India up 1%. The other notable gainers were Cipla, ONGC, Infosys, ICICI Bank, SBI, NTPC and Wipro, up 0.3-0.7%.

Among the losers was Tata Steel down over 2% after the company announced that it was making non-cash impairment of $1.6 billion for 2012-13.

From the auto pack, Bajaj Auto, Hero MotoCorp, Mahindra & Mahindra,    Maruti Suzuki and Tata Motors slipped 0.2-1.1%.

Jindal Steel, HDFC Bank, BHEL and L&T down 0.6-0.9% were the other major losers.

The market breadth was marginally positive. 560 stocks advanced while 439 stocks declined on the BSE.