Markets remain marginally positive, HDFC gains

Benchmark indices continue to remain marginally positive led by buying among HDFC and auto shares. However, the upside has been capped due to weakness among index heavyweight Reliance Inds.

At 10:10AM, the Sensex gained by 32 points at 20,182 and the Nifty was higher by 9 points at 6,039.

The market will remain volatile during the week as traders will roll over positions in the futures & options (F&) segment from the July 2013 series to August 2013 series.

According to Navneet Daga, Derivative Analyst, KR Choksey Securities, “July series expiry is looking very much near to 6000 levels. So writing straddle of 6000 is making sense to us.  July series from here on looking more of consolidation of gains.”

Japanese stocks struggled to extend gains on Monday as an initial rally sparked by Prime Minister Shinzo Abe's big election win over the weekend fizzled with profit taking emerging after the yen bounced off lows.
 
Most other Asian share markets showed slight advances, although Hong Kong's Hang Seng was a touch lower.
 
Tokyo's Nikkei was flat, having earlier climbed as much as 1.2%. Exporters such as Toyota Motor Corp underperformed as the dollar slid below 100 yen.

Back home, the rupee today fell by nine paise to 59.44 against the dollar in early trade at the Interbank Foreign Exchange market on increased demand for the US currency from importers amid a weak opening in local equities.

On the sectoral front, BSE Oil & Gas and Consumer Durables indices have plunged by nearly 1% each. However, BSE Auto, Bankex and Realty indices have gained by 1% each.

Index heavyweight Reliance Inds has dropped by nearly 2%. The company has reported 18.9% year-on-year (yoy) jump in its net profit at Rs 5,352 crore for the quarter ended June 30, 2013 %, as gross refining margin (GRM) rose to $8.4 per barrel compared with $7.6 a barrel in the same period last year.

Net sales however, declined by 4.6% yoy to Rs 87,645 crore mainly due to 42% yoy fall in revenue from its oil and gas business. Gas production from KG D6 block declined 52.9% yoy to 15mmscmd.

Other notable losers are BHEL, GAIL, Tata Steel, Dr Reddy’s, Wipro and Sterlite.

On the gaining side, HDFC is the top Sensex gainer, up nearly 3%. HDFC is planning to buy Hindustan Unilever's former headquarters, Lever House, located at Backbay Reclamation in the southern tip of the megapolis.

From the auto space, Bajaj Auto, Tata Motors, M&M and Hero Moto gained between 1-2%.

Among other shares, Wockhardt has slipped 11% to Rs 792 after the pharmaceutical company said it has received warning letter from the US Food and Drug Administration (USFDA) for its facility at Waluj in Maharashtra not meeting manufacturing norms.

Financial Technologies (India) has dipped 4% to Rs 608, extending its over 17% fall in past five trading sessions, after government asked National Spot Exchange (NSEL) not to launch contracts of new commodities until the government finalises a new regulatory framework.

The market breadth in BSE remains positive with 692 shares advancing and 493 shares declining.