Sensex ends up 50 pts

Oil and gas, FMCG stocks gain

The Sensex has ended (provisional) a 20,089 up 50 points. Nifty ended up 16 points at 6,080.
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(Updated at 1424 hrs)

Markets have surged suddenly in spite of the disappointing results posted by HDFC. The Sensex opened firm this morning at 20,133 on the back of gains in Reliance. The Sensex touched a high of 20,163 and was up 87 points at 20,126. Nifty was up 21 points at 6,085.

In Asia, stocks traded mostly higher in a choppy session Monday, with Japanese shares sliding back from last week’s multi-year peaks as a two-day meeting at the Bank of Japan got underway. Nikkei slipped 1.5% at 10,748. Shanghai Composite advanced added 0.5% at 2,328.

Meanwhile, retaining India's credit rating at the existing level, global agency Moody's has cautioned that a high fiscal deficit could pull down the growth in the coming years.

"Large government deficits and debt ratios as well as supply constraints in the form of infrastructure, policy and administrative inefficiencies constrain the sovereign credit profile," Moody's said in India rating report.

On the positive side, the global rating agency reaffirmed sovereign credit rating of India at Baa3, which indicates investment grade, with a stable outlook.

HDFC, a housing finance provider, reported a net profit of Rs 1,140 crore for the third quarter ended December 31,2012. This marks a 16% growth from Rs 981 crore for the year-ago period. The total income increased 17% to Rs 5,250 crore as against Rs 4,472 crore in the same period a year ago. The stock was down 0.5% at 819.

BSE oil & gas index jumped 1.5% at 9,721. Capital goods, FMCG and power indices also advanced. IT pivotals declined for the second straight day on recent gains of rupee against the dollar. BSE IT index was down 0.2% at  6,397. Interest rate sensitive realty stocks fell on profit booking after recent gains with the index declining 0.7% at 2,295.

Back home, index heavyweight Reliance Industries (RIL) is the top Sensex gainer  after reporting a better-than-expected 24% year-on-year (yoy) growth in net profit at Rs 5,502 crore for the quarter ended December 31, 2012 (Q3) on account of higher than expected profitability from refining segment. The stock is up 2.7% at Rs 924.

BHEL gained 2% after it said it has achieved a significant milestone in Africa with the successful commissioning of its first Steam Turbine Generator (STG) Unit in Ethiopia. Significantly, this is also the company's first STG set to be commissioned in the African continent, Bhel said in a statement. This was followed by Bharti Airtel, Larsen & Toubro, Maruti Suzuki and ITC. L&T will unveil Q3 results on Thursday while Maruti Suzuki India will come out with Q3 numbers on Friday, respectively.

On the other hand, Sun Pharma dropped 2.5% at Rs 695. Tata Motors, Cipla, TCS and Coal India are among some of the other losers.

BSE market breadth was marginally negative. Out of 2,892 stocks traded, 1,430 stocks declined while 1,330 shares advanced in after trades.