 "Nifty below 5000 again; time to buy rate sensitives?")
Markets open weak with the Sensex down around 90 points and the Nifty trading at 4978, down 21 points with 45 components trading in the red on global worries coupled with domestic uncertainties. The rupee too fell 0.5 percent in early trade to 53.54 a dollar.
In fact Sandeep Shah, chief executive officer, Sampriti Capital cautions that Nifty may correct to 4,600-4,800 levels ahead, if global and local situation deteriorates further.
Fresh fears of withdrawal of investments by foreign fund and weakening rupee spooked the markets yesterday. Today traders will be closely watching the movement of FII’s and rupee for further direction. According to Shah, depreciating rupee and lack of policy action will weigh on Indian equities taking it lower levels. If the market slips to 4,600-4,800 levels, one should buy rate sensitives like auto and banking stocks, he told CNBC-TV 18 in an interview.
Sudarshan Sukhani of s2analytics.com says there is no purpose in going and buying the Nifty even for intraday trades today. He doesn’t see Nifty finding support even at 5,000 levels. “It just needs a small push for it to reach 4,800 and that could be very fast,” he cautioned.
[caption id=“attachment_303359” align=“alignleft” width=“380” caption=“The Bank Index is the clear loser in opening pulling the markets down”]
[/caption]
The Bank Index is the clear loser in opening pulling the markets down, with SBI down 1.7 percent, HDFC Bank down half a percent, Canara Bank down 2.5 percent and ICICI Bank down 1 percent.
DLF, however, is the top Sensex lower, down 1.4 percent at Rs 187.25.
Wipro, TCS, BHEL, ITC were among the notable leaders in the Sensex and the Nifty.
RIL, Infosys,Sun Pharma, DLF, ICICI Bank,M&M,, ONGC, Maruti, Tata Steel, Bajaj Auto, NTPC were among the notable losers in the Sensex and the Nifty.
Asian Paints rises 1.29 percent to Rs 3700 on BSE after consolidated net profit rose 39.48% to Rs 259.48 crore on 29.5% increase in net sales to Rs 2538.70 crore in Q4 March 2012 over Q4 March 2011.
Rabnbaxy is up 1.4 percent ahead of its results announcement and may see a 70 percent topline boost due to Lipitor generic and authorized generic launch of Caduet.
Earnings Today:
ABB, Arvind, GVK Power, IRB Infra, NIIT, Ranbaxy Lab, PNB, Union Bank, United Breweries Holdings and Triveni Engineering are among the many to announce their numbers today.
In the infrastructure space GVK Power and IRB Infra will declare numbers today. High interest costs and debt concerns may impact GVK Power’s bottomline.
Punjab National Bank will also announce their numbers today. According to a CNBC-TV18 poll PNB may see a 19 percent growth in net interest income, but its margins could come under pressure.
Meanwhile, Subir Gokarn, deputy governor of RBI has been reported of saying that the Reserve Bank of India’s role in protecting the rupee’s slide is limited despite some anti-market measures. However, some recovery can be seen in the later part of the trade as speaking on the Finance Bill in Lok Sabha, the finance minister guaranteed that there was no reason to panic over the country’s economic situation and repeated the government’s commitment to keep the fiscal deficit in check.
IPO Listing today
TBZ will list on the exchanges today and the small-size issue will raise Rs 200 crore. Due to expensive valuations, the issue received muted response and got subscribed only 1.15 times. The issue price stands at Rs 120 per share.
Stocks in News
Shriram Transport Finance will garner up to Rs 2,000 crore via non convertible debenture (NCD).
It is learnt form reports that Zydus Cadila is in early talks to buy Strides Arcolab ’s local generic business.
DB Corp would also be on the radar as its promoter Jyoti Agarwal will be selling 90 lakh shares via open market. He has set Rs 196 per share as a floor price for share sale.
Meanwhile, JSPL has acquired 9.25% stake in Australia’s Apollo Minerals.