Sensex hovers around 23,850; Bajaj Auto dips 3%

BSE Metal, IT and Capital Goods indices have slumped between 1-1.3%.

Benchmark indices are trading in a narrow range post the announcement of April WPI inflation, which has come in at a 2-month low of 5.2%.

The wholesale price index (WPI)-based inflation fell to two-month low of 5.25% in April from 5.7% in March, as all three major components of the index - food, fuel and manufactured goods - recorded moderation in prices.

At 1435 hrs, the Sensex was up 34 points at 23,849 and the Nifty slipped two points at 7,107.

Adds Devangshu Datta, Technical Analyst, ”Given the news-based volatility of election results, it's better to expect nothing and be prepared for anything. If support at 7090-7100 level breaks, the market could fall till 7050 and below that, till 7000. On the upside, it could also surge past 7200 to new highs. All short term trends will be driven by election results tomorrow”.

On the global front, European stocks followed Asia higher on Thursday while the euro fell as investors bet central banks in developed markets would continue their monetary support, with the European Central Bank poised to cut interest rates next month.

Emerging stocks were the biggest winners from expectations for more stimulus, hitting a 6-1/2 month high, while stronger-than-expected German first-quarter economic growth data pushed the benchmark German bond yield off one-year lows.

Back home, the rupee rose to a session high of 59.45, its highest since July 29, but suspected RBI intervention pushed the pair to 59.55/56 from its close of 59.66/67 on Tuesday.

Foreign institutional investors (FIIs) bought shares worth a net Rs 1520.08 crore on Wednesday, 14 May 2014, as per provisional data from the stock exchanges.

On the sectoral front, BSE Metal, IT and Capital Goods indices have slumped 1-1.3%. However, sectors like Power and Consumer Durables have gained by 1% each.

The main losers on the Sensex include Bajaj Auto, Dr Reddy’s Labs, Wipro, TCS, ICICI Bank, Hindalco and Sesa Sterlite.

Bajaj Auto, India's second largest two-wheeler maker, today reported 0.24% dip in net profit at Rs 763.93 crore for the quarter ended March 31, 2014, as against Rs 765.77 crore posted for the same quarter last year.

On the gainers side, NTPC, Tata Power, Sun Pharma, HUL, GAIL and Axis Bank have gained between 1-3%.

Sun Pharmaceutical Industries has moved higher by 2% to Rs 626 on the National Stock Exchange (NSE) after the company announces settlement of litigation for generic Gleevec in United States.

Among other shares, LG Balakrishnan & Bros has surged 15% to Rs 541, also its record high on NSE, after the board approved the issue of bonus shares in the ratio of one equity share for every 1 equity shares held by way of capitalisation of reserves.

Shakti Pumps India has surged in this session after reporting a stellar set of numbers after market hours on Wednesday.

Shares of Oberoi Realty have extended gains and were up 4.5% at Rs 224 after the Mumbai-based real estate developer recently said that it has raised Rs 750 crore through issue of non-convertible debentures.

The broader markets are under performing the benchmark indices- BSE Midcap and Smallcap indices have declined by nearly 1% each.

The market breadth in BSE remains unhealthy with 1,704 shares declining and 1,092 shares advancing.