Nifty ends close to 6000 ahead of RBI credit policy

Benchmark indices continued to be on a roll Thursday, with the 50-share Nifty topping the psychological 6000-mark. The Sensex ended the day at 19735.77, up 231.59 points and the Nifty gained 69.15 points to close at 5999.35.

Technology stocks led the indices as TCS gained 3.8 percent and Infosys surged 2.3 percent. Ahead of the Reserve Bank of India's monetary policy review, financial stocks too anchored the market. M&M, L&T and HDFC were the big gainers in the Sensex.

Today's upmove took the market by surprise, given another weak macro-economic indicator and weak quarterly numbers from telecom major Bharti Airtel.

The HSBC Manufacturing Purchasing Managers' Index (PMI), fell for the second consecutive month in April , dipping to a 16-month low of 51.0, down from 52.0 in March.

Given cooling wholesale price inflation and sluggish industrial output, the market is almost certain that the RBI will cut interest rate by 25 basis points at its policy review meeting on Friday.

The midcap index closed on a positive note. GMR Infrastructure (up 5.16 percent), IVRCL (3.37 percent), Reliance Infrastructure (up 3.93 percent), Sintex Industries (up 3.89 percent), Unitech (up 5.38 percent), HDIL (up 2.26 percent) were the stars in the midcap space.

Investors were not impressed with metal stocks as the index closed in the negative terrain. Hero MotoCorp, HUL, Hindalco, GAIL and Bajaj Auto dragged in the Sensex.

Oil fell more than 2 percent to settle below USD 100 a barrel on Wednesday as soft economic data from China stoked pessimism about the global demand outlook and as US crude oil inventory rose to a record level.

The market continued to trade on firm footing, as investors seemed keen to pump money.  The Sensex was up 237.07 points at 19741.25 and the Nifty up 71.30 points at 6001.50. All the indices led by technology stocks were in the green while metals stocks felt selling pressure.

M&M, TCS, L&T, Infosys and RIL were the big gainers of the day.

Kotak Mahindra Bank gained 1.6 percent as its fourth quarter earnings were better than expected.  The private sector lender's fourth quarter (Jan-March) standalone net profit grew to a forecast beating 47 percent year-on-year to Rs 436 crore, aided by robust net interest income which shot up 31 percent to Rs 903 crore.

Oriental Bank of Commerce was down 2.70 percent. Bharti Airtel  recovered its early losses and was down 0.60 percent in the last trading hour.

Meanwhile, HUL, Hero MotoCorp, GAIL, Bajaj Auto and Hindalco were the biggest losers in the Sensex.

The HSBC Manufacturing Purchasing Managers' Index (PMI), fell for the second consecutive month in April, dipping to a 16-month low of 51.0, down from 52.0 in March.

Indian shares were trading at three month high on renewed optimism after recent fall in commodity prices. India being the net importer of gold and crude will benefit the most from the commodities fall. The earnings season so far has thrown up more positives than negatives as expected before the start of earnings season.

The Sensex was up 258.38 points or 1.32% at 19762.56 and the Nifty was up 79.90 points or 1.35% at 6010.10. About 1214 shares advanced, 991 shares declined, and 120 shares remain unchanged.

The Nifty has rallied close to 500 points or roughly 9 percent in the last fourteen trading sessions including today.   

Rupee also surged to fresh two month high tracking movement in equity markets and government's recent announcement saying that all foreign institutional investors (FIIs) investment in Indian debt paper will attract only 5 percent withholding tax.

Banking stocks were trading firm ahead of the RBI's credit policy tomorrow. Market watchers and bankers expect RBI to cut cash reserve ratio by 50 basis points to revive the ailing economy.

Key gainers in the Nifty were Reliance Infra, Jaiprakash Associates, TCS, Mahindra and Mahindra and Larsen, up between 2.5-4.5 percent.

Laggards included HUL, Cairn India, GAIL, Hindalco and Dr Reddys Labs.

On earnings front, private sector lender Kotak Mahindra Bank reporte better earnings than street expectations with the fourth quarter (January-March) consolidated net profit rising 27.8 percent year-on-year to Rs 666 crore. Net interest income (NII) grew 26.2 percent to Rs 1,324 crore, way ahead of forecasts.

Oriental Bank of Commerce  (OBC) on the other hand reported a lower-than-expected 16 percent year-on-year growth in its fourth quarter net profit at Rs 308 crore. Moderation in net profit was due to higher provisions.

The market was holding firm as the Nifty was hovering around 6000 level supported by technology and rate sensitive stocks. The Sensex soared 228.36 points to 19732.54 while the Nifty was up 67.85 points at 5998.05.

The midcap index also made some smart gains with Reliance Communication gaining more than 6 percent.

Banks like SBI, PNB, HDFC Bank were gaining ahead of Reserve Bank of India's credit policy review on May 3. Consensus indicates a 25 basis points repo rate cut.

Kotak Mahindra Bank (up 1.9 percent) was seeing buying interest ahead of its January-March earnings. Its net interest income (NII) is likely to grow 27 percent higher at Rs 870 crore on a standalone basis. No negative surprise was expected on the asset quality front.

M&M, TCS, L&T, SBI and Maruti Suzuki were the top gainers in the Sensex.

Meanwhile, Bharti (up 0.4 percent) erased morning losses post a weak set of numbers.

Fertiliser stocks were growing weak after the government decided to cut subsidies on phosphate and potash-based fertilisers in FY14 in an effort to rein in its fiscal deficit.Chambal Fertilisers and Chemicals lost 5.7 percent while Coromandel International was down around 3 percent.

Losers in the Sensex included HUL, GAIL, Hindalco, BHEL and Tata Motors.

The rupee rose further hitting two-month high after the near 1 percent rally on Tuesday. The government announced that all foreign institutional investors (FIIs) investment in Indian debt paper will attract only 5 percent withholding tax. The fall in crude prices was also helping sentiment.

Key equity benchmarks were trading at three month highs led by buying in IT, banks and selective telecom stocks. Reserve Bank of India's credit policy review and its outlook on future rate cuts will set the near-term direction for market particularly after the recent fall in commodity prices of crude and gold. Analysts are of the view that a 25 basis point rate cut is already discounted by the market. Bank Nifty was up 1.5 percent.

The Sensex was up 218.56 points at 19722.74 and the Nifty was up 66.50 points at 5996.70. The Nifty has crossed 6000 for the first time since February 4 this year.

About 1088 shares advanced, 661 shares declined, and 110 shares remain unchanged.

SBI, India's largest PSU bank seeks a 1 percent cut in cash reserve ratio by RBI. Pratip Chaudhuri, chairman of SBI said in an interview to CNBC-TV18, ''Repo rate cut is irrelevant in the current scenario and I don't see transmission in case of a repo rate cut."

Bharti Airtel was down 1 percent after the company reported a 50 percent fall in quarterly profit. The net profit fell to Rs 509 crore from Rs 1006 crore reported a year earlier impacted by higher depreciation and interest costs.

Sales of auto companies remained sluggish in April after nine of India's leading passenger vehicles manufacturers together reported a decline in sales of seven percent, compared to previous year figures. Elevated fuel costs coupled with higher interest rates and economic slowdown kept buyers away from showrooms.

Key gainers in the Nifty were TCS, Reliance Infra, Mahindra and Mahindra, Infosys and Jaiprakash Assocaites, up between 1.7 to 2.5 percent.

Tata Motors, HUL, GAIL, Cairn India and Bharti Airtel were top losers. 

Despite sluggishness in Asian markets, India managed to remain in the positive terrain. The Sensex was up 38.82 points at 19543.00 while the Nifty was up 9.70 points at 5939.90.

Buoyed down by disappointing fourth quarter (January-March) earnings, Bharti Airtel (down 3.5 percent) was the biggest loser in the Sensex. The country's largest telecom operator's net profit rose lower-than-expected 79 percent quarter-on-quarter to Rs 508.6 crore.

Total income increased nearly one percent to Rs 20,448 crore from Rs 20,253.7 crore Q-o-Q, which was below expectations.

FMCG major HUL too gave up its gain in the early trade as it was down 0.7 percent. Marico was down 1.9 percent while Dabur gained around 1 percent.

Tata Motors, Hindalco and Tata Power were the other losers in the Sensex.

Auto stocks were reeling under April auto sales number. The new financial year started on a mixed note for car makers with leading firms, including Maruti Suzuki , Mahindra & Mahindra , Honda Cars and General Motors, reporting growth in domestic sales in April.

However, other manufacturers such as Hyundai Motor, Tata Motors, Toyota Kirloskar and Ford India, witnessed decline in sales during the month.

Capital goods and realty stocks were also losing strength.

Meanwhile, HDFC, TCS, ONGC, HDFC Bank and SBI were the biggest gainers in the Sensex.