Sensex recoups recent losses on positive global cues

The Indian markets opened green this morning after closing in the red for five consecutive trading sessions as the indices look to recoup some of their recent losses. Global cues were boosted by US services sector expansion, which extended in January and a few corporate results. Meanwhile, Markit’s euro zone composite PMI, climbed to a 10-month high in January.

[caption id=“attachment_615412” align=“alignleft” width=“380”] Reuters[/caption]

“Bear in mind the selling in the broader market has in fact intensified in recent days. The Nifty managed to close near its medium term support 50 DMA placed at 5945 levels. The outlook continues to remain cautious around these levels,” said IIFL in a research report.

While the Sensex opened 80 points higher at 19740, the Nifty opened 11 points higher at 5671.

RIL, Infosys, Wipro, TCS, SBI, ICICI Bank, Bharti Airtel, Sun Pharma, BHEL, HDFC, Tata Steel, Dr Reddys Lab, Tata Motors are among gainers in Sensex and Nifty.

NTPC, HUL, Hero MotoCorp, Gail India, HDFC Bank, M&M, are among losers in Sensex and Nifty.

Kingfisher shares drop more than 2 percent in opening trade after auditors said the company under reported losses.

HDFC shares are up more than 1 percent after the mortgage lender cut its lending rate by 10 bps yesterday evening.

Kotak Mahindra Bank rises on acquiring business loans portfolio of Barclays India. The stock is currently trading at Rs. 685.75, up 1.12 percent.

There will be buzz in the PSU sector especially NTPC after an empowered group of ministers (EGoM) met to finalise the timeline and pricing of the issue. The NTPC disinvestment is scheduled for February 7 and is expected to raise Rs 12,000 crore.

In other development, Centre and the states agreed that states would invite open competitive bids for procuring electricity in the next six months to bridge supply shortfall.

Meanwhile, Cabinet Committee of Economic Affairs (CCEA) gave an ‘in-principle’ nod for the coal pool pricing mechanism.

In a first step towards partial decontrol of sugar, the government is said to be preparing a Cabinet note to abolish the release order mechanism, which will free the sugar sector from its clutches.

Retirement fund body EPFO is planning to relax investment norms so that a part of its corpus can be invested in bonds of private sector companies