Markets maintain firmness

The financial space is going strong this morning, with HDFC, HDFC Bank, ICICI Bank and SBI adding more than a per cent each

The markets are stable this morning, after the gyrations witnessed in the previous session, due to strength in the financial space. The Sensex is at 22,506, higher by 88 points and the Nifty has clawed back above the technically crucial level of 6700 and is now at 6720, up 23 points. The broader markets are also sailing smooth; the midcap index is at 7377, up 53 points and the smallcap index is at 7554, up 64 points.

 

The BSE Sensex had swung wildly in a range of about 400 points on Wednesday before ending with marginal losses, to make it four successive days of losses after being on a tear since the rally began in February. While the markets have registered modest gains since opening bell, one would have to see how things pan out as we enter the last lap of the ongoing general elections. 

 

The S&P 500 ended nearly flat on Thursday as investors paused ahead of Friday's jobs report, though gains in Internet shares helped lift the Nasdaq. The Dow eased back into negative territory for the year, a day after closing at its first record high of 2014. The Dow Jones fell 21 points to 16,558 and the S&P 500 lost 0.27 points to 1,883, while the Nasdaq Composite added 12 points to 4,127.

 

Asian shares are mixed and the dollar has held slim gains amid expectations for an upbeat US payrolls report later in the session. Hang Seng, Taiwan and Jakarta have edged higher, while the Nikkei and Straits Times are tradi ng lower.

 

Financials are going strong in today's session. HDFC has spiked up by 1.5% at Rs 911 to top the gainers list on the BSE. HDFC Bank has gained by 1% at Rs 726, ICICI Bank has added 1% at Rs 1258 and SBI has added 1% at Rs 2100. Index heavyweight RIL has gained 0.7% at Rs 942.

 

Realty stocks, which felt the heat in the previous session, are back in the reckoning this morning. DLF has gained 0.3% at Rs 140, Godrej Properties has added 1% at Rs 222, among others.

 

On the other hand, auto stocks have hit roadblocks post pathetic sales numbers from the likes of Maruti and M&M.

 

M&M has slid by 2.1% at Rs 1049 to top the loser's list on the BSE after its domestic sales dropped by 15% at 34,107 units as against 39,902 in the same month previous year.

 

Maruti Suzuki has weakened by 1% at Rs 1898 after reporting a 12.6% decline in its April sales during the month at 79,119 units. Sales of the company's bread and butter segment mini cars comprising M800, Alto, A-Star and WagonR declined by 25.4% to 26,043 units, while those of premium compact cars consisting of Swift, Estilo, Ritz rose by 9.9% to 23,659 units in April.

 

Oil and gas stocks are also under pressure, with Gail India and ONGC losing more than half a percent each at Rs 366 and Rs 323 respectively.

 

Hindalco Industries is under pressure with the CBI questioning former coal secretary PC Parakh for allegedly showing undue favours in allocating coal blocks to the company. The stock is at Rs 133, down 0.7%.

 

The market breadth is strong. Out of 1064 stocks traded on the BSE, there are 761 advancing stocks as against 258 declines.