Sensex pares all gains to turn red; TCS Q4 earnings eyed

The benchmark indices on Tuesday pared all intraday gains to slip in red after snapping three straight sessions of falls as the March quarter earnings season kicked off with banks rallying on expectations of robust earnings.

At 1:29 pm, the S&P BSE Sensex was trading at 29,373, down 40 points, while the broader Nifty50 was ruling at 9,121, down 9 points. 

In the broader market, the BSE mid-cap and small-cap indices hit their respective record highs after a strong rally in Adani Group, financials, infrastructure and hotel stocks.

The market breadth, indicating the overall health of the market, was positive. There were over two gainers against every loser on BSE. On the BSE, 1,730 shares rose and 853 shares fell. A total of 137 shares were unchanged.

All sectoral indices were trading in green. Nifty PSU Bank index (up 2%) contributed most to the gains. The index hit its 52-week high. Bank of India (BOI) and Oriental Bank of Commerce were up more than 3% each, hitting their respective 52-week highs on the NSE. 

Among other stocks, Union Bank of India, Punjab National Bank, Andhra Bank, Syndicate Bank, Bank of Baroda (BOB), Canara Bank and Allahabad Bank from the index gained 2% to 3%.

Meanwhile State Bank of India (SBI) that gained 2% to Rs 296 levels on Tuesday became the most valued PSU by market capitalisation (m-cap). Thus far in the calendar year 2017 (CY17), SBI has outperformed the market with over 18% rise, as against 11.5% gain in the benchmark index.

Reliance Industries was among the top gainers, rising as much as 1.3% to 1,410 rupees, surpassing Tata Consultancy Services' market capitalisation for a brief moment to become India's most valued company.

TCS was trading flat ahead of its Q4 results due later in the evening. 

Estimates of key brokerage firms suggest revenue growth of the company should range between 4.4 and 5.4% year-on-year basis, while it is expected to grow between 1.5-2% on sequential basis in Q4 in constant currency terms. 

Gruh Finance jumped as much as 8% after the housing finance company posted a 26% rise in March-quarter net profit after tax on Monday. 

Overseas, most Asian stocks were trading higher as a strong post-Easter finish on Wall Street provided upward momentum. US markets rose the most in six weeks as investors turned their attention to first-quarter corporate earnings.

Geopolitical tensions, notably those between the US and North Korea, have heightened worries about aggressions escalating into a nuclear confrontation. Over the weekend, North Korea put on a massive military parade, followed by a failed missile launch. In an unannounced visit to the Korean Peninsula's demilitarised zone, US Vice President Mike Pence yesterday warned North Korea not to test the resolve of President Donald Trump or the military strength of the US.

(With inputs from agencies)