The market failed to hold entire gains in last couple of hours of trade Monday, tracking volatility in Europe and correction in oil prices after Friday’s rally. The Sensex surged more than 200 points intraday but trimmed gains in afternoon trade, especially after fall in Europe.
The 30-share BSE Sensex rose 50.29 points to 24,485.95 and the 50-share NSE Nifty advanced 13.70 points to 7436.15. The broader markets also closed off day’s high; the BSE Midcap index was up 0.2 percent and Smallcap gained nearly 1 percent.
Nischal Maheshwari of Edelweiss Securities says the market has hit a bottom for now, but I am not sure if market has made a medium-term bottom.
He feels Nifty can find a floor at around 6700-7000 level.
On the global front, Asian markets closed higher following Friday’s rally on Wall Street. Hang Seng was up 1.4 percent and Shanghai gained 0.8 percent. European markets were volatile with DAX up 0.3 percent after correction in oil prices. Brent crude declined 2 percent to USD 31.5 after rising more than USD 32 a barrel intraday (at 16 hours IST).
Equity market will remain shut on Tuesday for the Republic day holiday.
Back home, HDFC Bank gained nearly a percent after its third quarter earnings matched analysts’ expectations. Profit grew by 20 percent year-on-year and net interest income jumped 24 percent with net interest margin growth at 4.3 percent in Q3.
Housing finance company HDFC was the leading contributor to Sensex’s gains, up 1.4 percent ahead of quarterly earnings on Wednesday. A CNBC-TV18 poll expects overall earnings to be subdued in Q3 with profit rising 10 percent.
Cairn India rallied more than 5 percent despite tepid earnings announced last Friday. Profit fell more than 98 percent year-on-year due to slow revenue growth and weak operating performance after fall in crude oil prices in Q3. The rally may also be because of upside in crude oil prices.
Among others, ICICI Bank, Sun Pharma, ONGC, HUL, Coal India and Tata Steel gained 1-3 percent while L&T, Tata Motors, Hero MotoCorp, Lupin, GAIL and M&M were down 1-3 percent.
In broader space, Ajanta Pharma was up nearly 2 percent on tentative USFDA approval for Sildenafil Citrate.
Ashoka Buildcon, Unichem Labs and Force Motors surged 6-7 percent post strong set of earnings in Q3. SpiceJet rose 11 percent after net profit in December quarter stood at Rs 238.4 crore against loss of Rs 275 crore in year-ago period.
The market breadth remained positive as about two shares advanced for every share declining on the Bombay Stock Exchange.