Sensex ends flat; Reliance, HDFC, TCS top losers

The Nifty took a breather today after surging close to two percent yesterday. The rally which started on Monday post 40-month low inflation data came to halt today on profit booking. Gold, crude prices also stabilized after hitting multi-month lows yesterday.

The Sensex closed at 18731.16 down 14 points and the Nifty ended below 5700 at 5688. The Nifty closed above its 200 day moving average of 5656.

Analysts are of the view that the fall in gold, crude prices will take care of the current account deficit but the problems pertaining to country's growth are still unaddressed. India Inc is still reeling under slowdown and a mere fall in commodities or a 25 basis points rate cut will not bring them out of the woods.

Among the sectoral indices, FMCG was the top gainer, up by 1.41%, with ITC touching its all-time high at Rs 314. Auto, healthcare, metal and realty stocks also gained more than a percent each.

Mahindra and Mahindra, Sesa Goa, Ambuja Cements, SBI and Sun Pharma were top gainers on the Nifty. Reliance Industries, Reliance Infra, TCS, Tata Power and HDFC are top losers.

Country's largest software services exporter Tata Consultancy Services (TCS) declined more than one percent ahead of fourth quarter earnings on Wednesday after market hours.

Analysts on an average expect steady quarter . According to a CNBC-TV18 poll, analysts expect dollar revenue growth of 2.95 percent to USD 3035 million while margins are expected to slip slightly to 26.53 percent as against 27.26 percent QoQ.

Reliance Industries and HCL Tech ended lower on profit-booking post Q4 results. The market breadth was marginally positive and volumes were higher compared to the previous session.

The market had become extremely choppy in the last trading hour of the day. The Sensex was down 2.53 points at 18742.40, and the Nifty was up 3.70 points at 5692.65. About 1149 shares have advanced, 1094 shares declined, and 1316 shares are unchanged.

Metals, auto, FMCG and realty stocks were stars of the day. M&M, Sterlite, Sun Pharma, SBI and ITC were the lead gainers in the Sensex.

Cigarette major ITC rallied for the fifth consecutive session, hitting a life-time high of Rs 314 due to value buying. The stock has gained more than 10 percent in five days and 30 percent in last one year.

Fresenius Kabi Oncology gained as much as 20 percent intraday on Wednesday after the company said parent company was looking for voluntary delisting of Indian arm. But the stock came off day's high on profit booking.

Technology stocks were under heavy selling pressure owing to the fourth quarter corporate earnings. Ahead of announcing Q4 results, TCS was down 2.2 percent. Wipro lost 1.1 percent and HCL Tech 1.5 percent.

Reliance Industries lost 4 percent, while HDFC and Tata Power were dragging the indices.

The benchmark indices have given up their early morning gains after European markets opened in red. Sensex is trading flat after gaining more than 100 points.

The current rally is more of short covering but the internal problems of the country especially with respect to growth are still unsolved.

The Sensex is down 70 points at 18673 and the Nifty is down 17 points at 5671.

Index heavyweight Reliance Industries is down more than 3 percent dragging the Nifty below 5700. The company reported flat growth in sales and other income component boosted its bottomline.

Mahindra and Mahindra, Sun Pharma, Ambuja Cements, Sesa Goa and SBI are top gainers on the Nifty. Reliance Industries, Reliance Infra, Dr Reddys Labs, Jaiprakash Associates and HCL Tech are top losers.

The rupee hits a new seven week high at 53.77, and currently trading at 53.80/81 versus its previous close of 54.15/16 as gains in the domestic sharemarket and a broad risk-rally in regional markets help.

Cash gold shrugged off weakening US bullion futures to jump as much as 1 percent on Wednesday as buyers snapped up gold bars, coins and nuggets after prices touched their lowest in more than two years the session before.

The equity benchmark indices are trading firm on renewed optimism buoyed by hopes of rate cut and lower import bills. Bank Nifty has surged close to 5 percent this week after inflation touched 40-month low. RBI's next monetary policy is scheduled on May 3 and 25-50 bps rate cut is expected.

The Sensex is up 101 points at 18846 and the Nifty is up 36 points at 5725.

The rupee is trading at 53.95 versus its Tuesday's close of 54.15/16 after hitting 53.89 in early trade, its highest since February 28.

Traders say sentiment for the dollar/rupee continues to remain weak on the back of the recent sell-off in global commodities and rising hopes of a rate cut. The selloff in global commodities is seen taking the pressure off the country's record current account deficit, which has been a key factor weighing on the rupee.

Reliance Industries' shares fall 1 percent after its revenue growth for the January-March quarter missed analyst estimates while profits were broadly in line.

Tech shares fall tracking the rupee's appreciation and on worries that a proposed US Senate immigration bill may lead to outsourcing firms paying higher fees and wages to H-1B visa workers.

Investors seem to have regained confidence in Indian market as it rallied for the second consecutive day. The Nifty was still holding above 5700 and was at 5705, up 16.35 points while the Sensex gained 26.14 points at 18771.07.

Banking, metals and realty stocks were lending strength to the indices while oil and gas stocks were on sellers' radar.

Sterlite Industries, SBI, Coal India, Bajaj Auto and ICICI Bank were some of the leading gainers in the Sensex.

HMT surged 15.3 percent as the Cabinet Committee on Economic Affairs (CCEA) is likely to consider an over Rs 1000 crore revival package for the company today.

Puravankara Projects was up 3.2 percent ahead of earnings expected today. The company has been posting very steady earnings due to improvement in the Bangalore market.

HCL gained 1.7 percent while TCS seem to be nervous ahead of its earnings. The stock was down 0.7 percent.

Future Retail lost 7 percent on the back of a technical adjustment of Rs 35 on account of the demerger of Peter England, the ex-date of the demerger is today. Peter England Fashions will be listing separately.

Meanwhile, other laggards in the Sensex were RIL, DRL, Infosys and Wipro.

The market opened on a steady note, tracking positive global cues. The Sensex was up 74.88 points at 18819.81, and the Nifty gained 19.70 points to 5708.65. The slump in gold price and big correction in crude price has got investors interested in Indian equities once again.

Some of the big gainers were SBI, L&T, GAIL, ICICI Bank and Tata Motors.

Boosted by better-than-expected third quarter earning, HCL Tech jumped 5 percent. Its  net profit soared 73 percent year-on-year (8 percent quarter-on-quarter) to Rs 1,040 crore, helped by new deal wins, even as the overall environment remained challenging and uncertain. Its revenue was up 23 percent from a year ago (2 percent sequentially) to Rs 6,425 crore in Jan-March.

Midcap stocks were also performing well. Delta Corp, Dish TV, EID Parry, HDIL were among the major gainers.

Gold loan related companies recovered as Muthoot Finance gained around 4 percent but Manappuram Finance was still down 4.78 percent.

Kingfisher Airlines (down 4.9 percent) continued to reel under pressure.

Other major losers in the Sensex were RIL, Maruti, DRL, Bajaj Auto and HUL.