Yippie! Nifty opens above 5,000; SBI leads charge

It is a positive start to the markets with the Sensex openeing up around 80 points in trade, and the Nifty crossing the 5,000 mark, up around 18 points from yesterday’s close.

All BSE sectoral indices except the FMCG index are trading in green. Among the major gainers, Tata Motors is up 2 percent, Bhel is up 1 percent and State run SBI is also up 1 percent at Rs 2121. Top traded stocks on NSE include Lanco Infra, Suzlon and Tata Motors

The Auto stocks are likely to remain under pressure, though petroleum minister has declined of raising diesel prices, it has been reported that the finance ministry is taking a fresh look at a proposal to hike excise duty on cars running on subsidized diesel.

Sudarshan Sukhani of s2analytics.com says there is now a little room for our market to pullback.He sees no reason why we won’t approach or at least make an attempt to approach 5,100. “The short-term trend is up. The market could be bit choppy today but I do not see any reason to go and short sell. The idea would be to buy dips.”

[caption id=“attachment_324299” align=“alignleft” width=“380” caption=“Nifty opened at its highest since 10 May 2012.”] [/caption]

Meanwhile, the rupee recovery too will be watched, its firmness may strengthen the sentiments of the marketmen, encouraging to go for risky assets. The rupee opened lower against the US dollar retracing gains from the past three days. At 9:15 p.m., the rupee was down 33 paise at 55.4from Monday’s close. The rupee had closed higher on Monday at 55.18/$ supported by a stronger Euro as global risk assets stabilised. It was expected to trade in the range of 54.80-55.05/$.

The top gainers of last session, banking stocks may come under pressure as Finance Minister has warned the state-run banks against deteriorating asset quality and has called for better professional supervision.

Further, the telecom companies too may remain buzzing as they may have to shell out lower amounts for airwaves in the upcoming auctions if the panel of ministers on spectrum sale accepts a proposal to sell the scarce resource for a 10-year period.

Results today: Apollo Hospitals, Aurobindo Pharma, Bombay Rayon, EIH, GMR Infra, Hindustan Copper, Hotel Leela, HPCL, ONGC, NCC, Lanco Infra, Jindal Stainless, Power Grid Corporation, Praj Inds, SAIL, Shipping Corporation, Sun Pharma, Tata Motors, WELCORP etc are among the many to announce their numbers today.

Stocks in news:

Fortis Healthcare has hived off its non-core business and related assets into a separate company to be listed as a business trust on the Singapore exchange to raise around Rs2000 crore, reported the Economic Times today.

Teva will not launch atorvastatin, the generic version of Lipitor, a move that will help Ranbaxy and DRL garner larger sales in the US.

Jindal Steel & Power has entered into an agreement with Gujarat NRE Coking Coal, an Australian subsidiary of Gujarat NRE Coke, to pick up a 10% strategic stake in the company.

Reliance Communications said regulatory clarity from the government would help plans of selling its tower unit and push the deal to a close.

Rating company Icra has downgraded the bank facilities of Suzlon Energy and its eight subsidiaries just few weeks before the company’s US$360mn FCCB is due for repayment.

Bank of India re-entered the mutual fund business by forging a joint venture with AXA Investment Managers. The new JV BOI-AXA Investment Managers Pvt Ltd will be owned 51% by Bank of India and 49% by AXA Investment Managers.

Welspun Corp said it has received orders worth Rs2070 crore from international and domestic markets.

Global rater Fitch reaffirmed investment grade rating for Bharti Airtel, saying its deal to buy Qualcomm’s wireless broadband business will not immediately impact the telecom major’s balance sheet.

Hotel Leelaventure Ltd said a promoter group firm; Leela Lace Holdings Pvt Ltd has pledged shares aggregating to 18.56% stake in it to State Bank of India and Bank of Baroda.

Bharat Forge is to liquidate its plant and machinery of Federal Forge Inc in America, after continuous losses recorded from the acquired assets seven years after the company bought these.

Oil India said it is in talks to buy 51% in billionaire Mukesh Ambani’s privately-owned firm Reliance Gas Transportation Infrastructure.