Thursday, the Indian market is moving sideways amid mixed global cues on concerns about the US banking sector. While there is some stock-specific buying, investors are taking profits on every rise. Except for select stocks in the IT and auto sectors, stocks are coming under selling pressure across the board.
After opening on a flat note, the benchmark BSE Sensex rose to a high of 10,885 before moving backwards to the day's low of 10,759. The index is now trading at 10,819, up 2 points or a mere 0.01%, while the S&P CNX Nifty is trading at 3,325, down 0.16%.
Second-line stocks are underperforming the benchmarks. The broad-based BSE 500 index is down 0.56%, the mid-cap index is losing 1.04% and the small-cap index is moving down nearly 1.5%. On the BSE, the market breadth is extremely negative, with 1117 decliners compared to 575 stocks that are gaining.
Among the major decliners, Bharti Airtel is losing 2.91%, State Bank of India, Jaiprakash Associates and Ranbaxy Laboratories are down around 2% each, Sterlite Industries is declining 1.69%, DLF is down 1.36% and Tata Power is moving down 1.06%.
However, IT stocks Wipro, TCS and Infosys, auto stocks Tata Motors and Mahindra & Mahindra, Reliance Communication, NTPC, oil-explorer ONGC and defensive FMCG stock Hindustan Unilever are trading firm.
Indian Hotels is rising 3.82% on reports that it is in negotiations to acquire Mumbai's Sea Rock hotel in a deal estimated at Rs.650-700 crore through one of its associate companies. Ambuja Cements is adding nearly 2% after reporting a 2.4% rise in net profit for the March quarter year-over-year.
Glenmark Pharmaceuticals is up 0.80% on reports that it has settled a patent dispute over various generic versions of Coreg with Israeli generic major Teva. Reliance Industries is trading down 0.12% and HDFC Bank is down 1.35% ahead of their earnings announcements later in the day.
Amtek Auto is up nearly 5% on reports that it is advanced negotiations to acquire OCL Iron and Steel for around Rs.350 crore as part of its strategy of backward integration. Hindustan Zinc is losing 0.28% as it reported a 53.35% fall in its net profit to Rs.551.47 crore for the fourth quarter ended March compared to Rs.1, 182.20 crore profit in the same quarter last year.
Shree Cement is edging up 0.87% on reports that it will invest Rs.1, 200 crore in the current financial year to expand its existing cement capacities, set up two Greenfield plants and install four captive power plants.
Zee Entertainment is losing more than 5% after its net profit fell 7.3% to Rs.96.8 crore for the quarter ended March compared to Rs.104.4 crore in the corresponding quarter last year. Indiaco Ventures is gaining 1.30% after the company proposed to consider sub-division of its equity shares and a bonus issue.
Kalindee Rail Nirman Engineers is declining 2.22% after the company convened a board meeting on 28 April to decide on buyback of foreign currency convertible bonds. Valecha Engineering is down 0.13% after the company proposed to consider issue of share warrants on a preferential basis to identified investors and promoters.
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