 "Markets remain flat; Jewellery stocks rally")
Benchmark indices are trading with marginal gains in the noon trades as investors book profits ahead of Reserve Bank of India’s (RBI) bi-monthly monetary policy due on Tuesday. Meanwhile, decline in crude oil prices and drop in Gold prices allowed the Sensex to maintain its gains led by Consumer Durables.
At 12.50 PM, the 30-share Sensex is up 5 points at 28,699 and the 50-share Nifty has gained 4 points to trade at 8,592.
In the broader market, BSE midcap index, up 0.3% is outperforming its larger peers while smallcap index is trading with marginal gains.
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Meanwhile, according to a business survey, India's factory activity is showing signs of gaining momentum. The HSBC Manufacturing Purchasing Managers' Index (PMI), compiled by Markit, at 53.3 in November from 51.6 in October, is the highest in 21 months. The expansion is largely due to the growth in consumer durables sector
The survey also showed companies passed on additional input costs to consumers at a faster pace, which could revive inflationary pressures after several months of slowing.
Also, Citigroup raised the BSE Sensex Dec 2015 target to 33,000 from 31,000, expecting a 15% upside from Friday's close and raised the Nifty target to 9,850 from 9,240.
The foreign institutional investors were net buyers in Indian equities worth Rs 935.86 crore on Friday, as per provisional stock exchange data.
Sectors & Key Stocks:
On the sectoral front, BSE Consumer Durables index is the top gainer up over 4% followed by Healthcare, FMCG and IT indices up over 1% each. However, Power, Oil & Gas, Metal, Realty and Capital Goods indices are down 1% each.
Shares of fast moving consumer goods (FMCG) major Hindustan Unilever (HUL) is trading higher by 3.5%. The company has indicated that it would be able to manage margin expansion, even with rising excise duties, going forward. ITC has gained 0.7%.
Among Auto stocks, Maruti Suzuki has gained 2% on positive November sales data. The company clocked around 15% increase in its passenger vehicles segment in November 2014 compared to same month last year. During the same period its domestic sales increased by 17% while exports surged by 52.7%.
Shares of Hero MotoCorp have climbed 2.5% on the Bombay Stock Exchange after the company announced the launch of its six best selling bikes in the South American country of Colombia.
The technology pack is witnessing an upsurge on the back of depreciating rupee. TCS and Wipro have gained 1.5% and 2.5%, respectively. Infosys is trading with marginal; gains as the stock will be traded ex-bonus from tomorrow.
Among the pharma stocks, Sun Pharma is trading with a gain of more than 1% after FIPB gave approval to its proposal of issuing equity shares of the company to the non-resident investors of Ranbaxy Laboratories pursuant to its merger with Ranbaxy. Its peers Cipla and Dr Reddy’s Lab are up between 1-2%.
In the banking segment, Axis Bank and ICICI Bank have surged between 1-2%.
On the flip side, Oil and Gas majors RIL and ONGC are trading lower by 1.5% and 2.5% each on decline in crude oil prices.
Metal shares are trading in the negative territory shrugging off the encouraging Indian factory activity which rose to a 21-month high in November and is quoting at 53.3.
Sese Sterlite, Tata Steel, Hindalco and Coal India have lost between 0.5-2%.
BHEL is down 2% on account of profit taking.
Tata Power, L&T, HDFC twins and NTPC are some of the notable names in red among others.
Among other shares, shares of paint manufacturer are trading higher by up to 9%, extending their past three days rally on the bourses, on expectation of improvement in operating profit margins due to fall in crude prices.
Shalimar Paints (up 9% to Rs 183), Berger Paints (8% at Rs 426), Akzo Nobel India (5.5% at Rs 1,405), Asian Paints (4% at Rs 774), Kansai Nerolac Paints (3.7% at Rs 2,085) are up between 4-9% on the BSE.
Jewellery stocks such as Titan, PC Jewellers and Tribhovandas Bhimji Jewellers (TBZ) have outpaced the S&P BSE Sensex on Monday and are up between 6-15%.
Market breadth is marginally weak on the BSE with 1,235 shares advancing and 1,323 shares declining.