Markets in consolidation mode

HDFC Bank near lifetime high post Q4 results

Markets are consolidating gains in the noon deals. The Sensex is up 100 points at 17,487 and the Nifty has advanced 36 points to 5,327 levels.

According to Somil Mehta, senior technical analyst with Sharekhan, "Nifty is still trading in a range between 5,400 and 5,150 and i am expecting more consolidation going forward, either side break out would decide the trend."

The Asian markets were trading on a strong note. The Nikkei jumped 2.15% to 9,667 levels, Hang Seng advanced 1.25% to 20,818 and the Shanghai was also trading higher by 2% at 2,380 levels.

Back home, Bajaj Auto is the top gainer among the Sensex stocks, up 3% at Rs 1,724. Hindalco, Sterlite Industries, Tata Power, Tata Motors, Tata Steel, Wipro and Gail India are also among the gainers, up 1-3% each.

On the other hand, ITC, Coal India, Infosys, DLF, NTPC, HUL and HDFC are among the losers.

Consumer durables, auto and power stocks are amongst the top performers on the sectoral front. The BSE Auto index hit the lifetime high 10,559 levels on expectations of interest rate cut by banks after the Reserve Bank of India (RBI) first time in three years reduced the repo rate - the rate at which it lends overnight funds to banks by 50 basis points to 8% in its annual monetary policy review yesterday to boost the sagging economy.

The Consumer Durable index has also advanced 1.5% or 103 points at 6,794 levels. Power, Metal, healthcare, Oil & Gas, Capital Goods, Bankex, Realty and PSU indices are also trading higher by 0.5-1% each.

At the same time, FMCG stocks are witnessing some bit of buying. The BSE FMCG index has shed  11 points to 4,767 levels.

HDFC Bank is trading higher by 1.5% at Rs 537, near its lifetime high of Rs 539.90 after the bank announced its fourth quarter results. The bank has announced profit after tax of Rs 1,453 crore. Net interest income has come in at Rs 3,390 crore. The bank has also decided to pay dividend of Rs 4.30 per share to its shareholders.

GVK Power and Infrastructure has moved higher by 7.5% at Rs 18.70 on reports that the company is planning to sell part of its stake in Hancock coal mines in Australia in order to raise funds for the development of the thermal coal assets.

The broader markets are trading higher by nearly 1% each. The BSE mid-cap index is up 61 points at 6,496 levels and the small-cap index has advanced 58 points to 6,939 levels.

The overall breadth is positive as 1,649 stocks are advancing while 970 are declining.