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Markets traded volatile after a positive start on back of profit-booking in index heavyweights such as Reliance Industries and Tata Consultancy Services, however, hopes of rate-cut by the central bank in the next month policy capped a significant fall.
Foreign institutional investors were net buyers of Rs 5.92 billion worth of local stock on Tuesday, provisional data from stock exchanges showed.
At 10AM, the Bombay Stock Exchange's 30-share index Sensex fell 6 points at 18,738.45 while the National Stock Exchange's 50-share Nifty rose 3 points at 5,692.65.
Investors booked profits in energy and technology after sharp gains in past couple of sessions, however, hopes that the central bank would ease monetary policy more aggressively next month to boost growth into the Asia’s third-biggest economy supported market sentiments.
IT stocks also declined amid reports of changes in H1-B visas policy. The changes under the Comprehensive Immigration Reform (CIR) put a curb on use of H-1B visa for those companies which have a higher ratio of work force under this category.
Meanwhile, global risk appetite was firm as new-home construction in the U.S. jumped more than forecast, the International Monetary Fund raised its forecast for Japanese growth and the yen weakened
Asian markets traded mixed with China’s Shanghai Composite Index falling 0.5% to 2,184, Hong Kong’s Hang Seng declined 0.1 % to 21,654, Singapore’s Straits Times rose 0.36% to 3,299 while Japan’s Nikkei was up 1% to 13,353.
Back home, the key sectoral indices such as real-estate, capital goods, metals, bankex, auto gained while IT, oil & gas sectors declined on BSE.
The gainers on the Sensex at this hour were SBI and ICICI Bank gaining 2% each, Coal India rose 1.5%, Jindal Steel and Sterlite Industries were up 1.4% and 1% respectively on the BSE.
The laggards were Reliance Industries and TCS declining 2% each, Wipor and Infosys dropped 1% each, Dr Reddy’s was down 0.3% on the BSE.
The key notable movers included counters such as , HCL Technologies has rallied 6% to Rs 810, also its record high on NSE, after reporting a better-than-expected 7.8% quarter-on-quarter growth in its consolidated net profit at Rs 1,040 crore for the third quarter ended March 2013.
Analyst on an average had expected profit of Rs 934 crore from the India's fourth-biggest software services provider.
Reliance Industries (RIL) is trading lower by almost 2% at Rs 790 after reporting a lower-than-expected top-line performance for the fourth quarter ended March 2013 (Q4).
RIL’s net sales declined by 1.2% year-on-year (yoy) to Rs 84,198 crore in March quarter mainly due to lower oil and gas segment sales. Analyst on an average expected revenues of Rs 93,058 crore.
The broader markets gained with mid-caps and small-caps adding 0.3-0.5% on BSE.
The market breadth was positive. Out of 1,131 stocks traded, 691 stocks gained compared to 389 declined on BSE.
