Thursday, July 11, 2013

Markets trading near day highs, banks lead

Markets continue to trade near their day highs in late morning trade led by bank shares after comments by the US Fed allayed fears of soon-than-expected easing of monetary stimulus measures and gains in the Indian rupee.

At 11:30AM, the 30-share Sensex was up 417 points at 19,711 after touching an intra-day high of 19,717 so far and the 50-share Nifty rose 129 points at 5,945 levels after hitting an intra-day high of 5,946.

Stocks in Asia were also trading higher after on back of US Fed's comments that it would continue its easy monetary policy in the near term. In Asia, Nikkei rebounded from the day lows and was up 0.2%. Singapore Straits Times, China’s Shanghai Composite and Hong Kong’s Hang Seng surged 1.7-3.2% each.

The Metal Index was the top gainer among the sectoral indices on the BSE, followed by Bankex, Capital Goods, Power, Realty, Oil and Gas, Auto and IT indices up 1.3-2.9% each.

Financial shares were among the top Sensex gainers on bargain hunting at lower levels after recent losses. HDFC Bank, ICICI Bank, HDFC and SBI were up 2.4-3.4% each.

Software major Infosys was up 1.3% ahead of its first quarter earnings on Friday. TCS was up 2%.

Oil shares rebounded today after correcting on Wednesday as the finance ministry told the petroleum ministry to consider putting a cap on the increase in domestic gas price when the pricing formula suggested by the Rangarajan panel is implemented in 2014.

Tata Steel wsa up 2% after the company said its saleable steel production increased by 23% yoy to 2.14 MT and sales increased by 26% yoy to 2.01 MT, higher than analyst estimates of 1.90 MT.

Other Sensex gainers include, ITC and L&T

Shasun Pharmaceuticals has rallied 12% to Rs 81.40, extending its previous day’s 20% surge, ahead of a board meeting on Saturday, July 13, to review the operations of the company.

IndusInd Bank has moved higher by 4% to Rs 515 after reporting a better-than-expected 42% year-on-year (yoy) growth in net profit at Rs 335 crore for the quarter ended June 2013 on back of healthy growth in interest income and improved margins.

The broader markets traded higher with mid-caps and small-caps gaining nearly 1 per cent on the BSE.

The market breadth was positive. Out of 1,258 stocks traded so far, 576 stocks advanced while 232 declined on the BSE.

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