Markets have a robust morning; Sensex up around 100 pts

L&T, Bhel, Hindalco and Tata Steel count among the gainers in early trades.

The markets have rebounded this morning, after shedding nearly two per cent last week, on the back of gains in the capital goods and metals space. The Sensex is quoting at 24,354, higher by 136 points and the Nifty is at 7,269, up 39 points. There is outperformance on the broader market front, with the midcap index at 8578, higher by 111 points and the smallcap index at 9143, up 128 points. The BSE capital goods index has soared by 4% and the metal index has jumped by a percent in early trades.

 

According to Kunal Bothra, technical analyst, LKP Securities, the level of 7220 -7240 is a strong support zone for the Nifty on a closing basis. If these levels hold for the next two days, the indices could bounce till 7350 levels as well.

 

The capital goods space is seeing action this morning. L&T has soared by 4.2% at Rs 1623 to top the gainers list on the BSE after reporting robust Q4 numbers post market hours on Friday. The company had reported 69% growth in net profit for the quarter ended March on the back of improved operational performance, higher sales and an exceptional income of Rs 484 crore from dilution of its stake in L&T Finance. Giving it company is BHEL, which has gained by 1.6% at Rs 246. 

 

The metals space is also witnessing buying interest. Hindalco has strengthened by 1.9% at Rs 150 and Tata Steel has gained 1.1% at Rs 480. 

 

Infosys has firmed up by 1.5% at Rs 2982. News reports that former SAP board member Vishal Sikka is certain to be chosen as the new CEO of Infosys would have also perked up the sentiment on this beleaguered counter. 

 

The rate-sensitive auto and banking stocks have also made modest gains ahead of the credit policy on Tuesday; Maruti Suzuki has added 0.8% at Rs 2289 and Bajaj Auto has gained 0.8% at Rs 1969. In the financials space, HDFC Bank has jumped by 0.9% at Rs 802, HDFC has added 0.9% at Rs 885 and Axis Bank has added 0.9% at Rs 1853.

 

On the other hand, M&M has weakened by 1.9% at Rs 1206 to top the loser's list on the BSE. NTPC has shed 1.8% at Rs 156 and Hindustan Unilever has lost 1.5% at Rs 591.

 

Hindustan Unilever is witnessing profit-booking after running up by around 7% in Friday's session. The other FMCG giant ITC has edged lower by 0.4% at Rs 340. Sesa Sterlite, M&M and TCS have lost in the region of around a percent each.

 

In stock-specific news, Gitanjali Gems has plunged by 7% to Rs 76.4 on the BSE after posting a net loss of Rs 35 crore for the quarter ended March 31, 2014 compared with a net profit of Rs. 44.4 crore for the quarter ended March 31, 2013.

 

NMDC has surged nearly 4% to Rs 177 after the state-owned iron ore miner reported a 34% rise in net profit at Rs 1,962 crore for the quarter ended March 2014, compared with a profit after tax of Rs 1,465 crore in the same quarter of the previous year. 

 

The market breadth is strong. Out of 2204 stocks traded on the BSE, there are 1506 advancing stocks as against 636 declines.