 "Stock market: A roller coaster ride for Indian equities")
Markets are consolidating ahead of the April F&O expiry and the and the US FOMC meet outcome due today.
Nifty hit 2016 highs at 7,980 levels earlier today led by ONGC as oil prices 2016 highs on Tuesday.
Nifty hit 2016 highs at 7,980 levels earlier today led by ONGC as oil prices 2016 highs on Tuesday.
At 11:00 am, the S&P BSE Sensex is down 3 points at 26,004 and the Nifty50 is up 5 point at 7,968.
Another important trigger is the oil price movement. Crude oil prices touched 2016 highs on Tuesday on the back of a rally in the gasoline market after an industry group posted a surprise draw in US crude stockpiles.
ONGC is the top gainer in the Sensex pack and is up 2.5% as media reports suggest that the state run oil exploration major intends to spend approximately $105 million (INR 7 billion) to drill up to 17 shale oil and gas wells located on the country's east and west coasts.
Meanwhile, Maruti Suzuki is trading higher by 2% on better than expected results. Riding on highest ever sales, Maruti Suzuki has reported a record in both profit and revenue for the year ended March 2016.
Prominent gainers include Tata Motors, Wipro, ITC, Bharti Airtel and BHEL up between 0.8%-1%. On the flip side, Axis Bank continues to remain under selling pressure and is down over 2% after its net profit fell 1% to Rs 2,154 crore in the March quarter from the same period a year before, on account of increased provisioning. This is the first time after 46 quarters that the bank has reported a decline.
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(updated at 9:30)
After a dismal opening, markets recouped the losses and turned flat. However, the key indices continue to trade in the negative territory as participants remain wary ahead of the April F&O expiry due tomorrow and the US FOMC meet outcome due today. Lower than expected result from Axis Bank has dampened sentiments further dragging the banking stocks lower.(updated at 9:30)
Developments in the Budget session along with crude oil and rupee movements are likely to dictate the trend later during the day.
At 9:30 am, the S&P BSE Sensex is down 22 points at 25,986 and the Nifty50 is up 2 point at 7,964.
Geojit BNP Paribas in a technical report says “the accumulation of the Nifty50 near the 7,800 region, also the lower extremity of flag pattern forced short covering that almost tested the 8,000 mark. However despite such theatrics yesterday, the oscillators in the longer term periodicities still look reluctant, which restrains us from confirming that the present move is capable of reaching the medium term objective of 8,200-8300 straight away.”
GLOBAL MARKETS
Asian equities are trading cautiously ahead of the US FOMC meet outcome due today and the BOJ meet slated tomorrow. Japan's Nikkei has shed 0.6% and Hong Kong’s Hang Seng has slipped 0.4%. However, China’s Shanghai is trading flat.
Analysts expect the US Federal Reserve to hold the interest rates steady in the two-day Federal Open Market Committee (FOMC) meeting. Dow Jones closed flat with a positive bias and Nasdaq closed lower by 0.15%.
STOCKS IN FOCUS
Axis Bank has cracked 3% after the bank reported higher NPAs in the fourth quarter. Gross NPAs increased to 1.67% of the total assets in the quarter, from 1.34% a year before. Net NPA rose to 0.7%, from 0.44%. Further, the bank expects bad loans to rise in fiscal 2017. Following the tandem, ICICI Bank is down 2%.
IDFC Bank reported weak fourth quarter earnings. The bank posted a net profit of Rs 165 crore, down 32% for the fourth quarter ended March compared to same quarter last fiscal. The stock has slipped 5%.
Syngene International is up over 2.5% after it reported 18% increase in fourth quarter profits to Rs 66.5 crore and 31% growth in revenues to Rs 334 crore as business from contract research and manufacturing services from global pharma firms increased.
Bharti Infratel has gained 3% after it reported a 7% year-on-year growth in consolidated revenue for the March quarter at Rs 3,162 crore. Operating income grew nine per cent to Rs 1,444 crore.
Some of the notable state-run companies ONGC, Coal India, BHEL, NTPC are trading higher between 0.2%-1.5% on talks of share buyback.
State Bank of Mysore is down 1% after it reported a 23% dip in fourth quarter profits to Rs 105 crore on higher provisions for bad debts largely to the iron and steel industry.
State Bank of Travancore dipped over 1% after it reported sharp drop in net profit for fourth quarter ended March 2016. Net profit slumped to Rs 62 cr fromstate Rs 191 cr in January-March 2015 on over five-fold increase in provisions for bad loans. Provisions for bad loans shot up to Rs 520 crore from Rs 90 crore.
Biocon has climbed over 1.4% after it reported 250% jump in fourth quarter profits to Rs 361 crore, and 17% increase in revenue to Rs 1,004 crore compared to the previous quarter. Biocon had reported profits of Rs 103 crore on revenue of Rs 854 crore in the January to March quarter last year.
NHPC has slumped over 6% after the offer for sale by the government. The floor price for the offer is Rs 21.75 per equity share
Yes Bank and Bharti Airtel have gained 1% ahead of its fourth quarter earnings later today.
