RTTNews - Wednesday, the Indian market is moving in a narrow range after opening lower this morning. Underlying sentiment is upbeat due to strong FII buying, but profit taking after a sharp rally on Monday is leading to some volatility. Mammohan Singh is expected to be sworn in as Prime Minister for the second term on Friday. Reports suggest that key government departments are preparing a 100-day action plan to revive growth and ease the credit squeeze.
After opening lower at 14,231, the BSE Sensex bounced back into positive territory in early trading. But the index has since then retreated and is now trading at 14,247, down 55 points or 0.39% from the previous close and the S&P CNX Nifty is trading at 4,309, down 0.22%.
Second-line stocks are outperforming the main indexes. On the BSE, while the broad-based BSE 500 index is up 0.97%, the mid-cap index is moving up 3.85% and the small-cap index is jumping 4.50%. The market breadth is extremely positive, with 1619 advancers compared to 352 stocks that are declining.
Sector-wise, metal, consumer durable and realty stocks are showing notable gains, but banking and select technology stocks are trading in the red. Capital goods, public sector, healthcare and auto stocks are showing modest gains.
Grasim Industries is trading up 1.34% despite reporting a 5% decline in its consolidated net profit for the fourth quarter ended March. Punj Lloyd is rising 3.44% on reports that it is exiting real estate business by selling its 50% stake in a joint venture company to Rampratha group.
Essar Oil is surging up 6.72% on reports that its investment may go up to $70 million in exploration and production this year. The company reported a net profit of Rs.660 crore for the fourth quarter ended March compared to a net loss of Rs.8 crore in the same quarter last year.
Dr Reddy's Laboratories is gaining 4.92% amid reports that it has readied an action plan to increase its revenue growth in the domestic market, especially in rural areas and some northern markets.
State Bank of India is adding 1.51% following reports about its integration with its associate banks. MTNL is adding 2.67% on news that it obtained the highest amount of spectrum in Delhi and Mumbai at 12.4 Mhz as on March 2009.
Wipro's business process outsourcing unit, Wipro BPO has reportedly inked a pact with Oracle for 'best-of-breed HR platform solutions.' However, the stock is trading down 1.27%. Satyam is also trading lower, but Infosys and TCS are showing modest gains.
Brokerage stocks are showing across the board strength on account of improved outlook for the Indian stock market. Prime Securities is up 4.96%, JM Financial is surging up 13.48%, Geojit is gaining 7.32%, Motilal Oswal is up 6.62% and IndiaBulls Securities is up 9.28%.
Aviation stocks are also showing sharp gains on expectations of a significant reduction in their operational costs due to the appreciation of the rupee against the U.S. dollar. Kingfisher is climbing over 12%, JetAirways is jumping 10% and SpiceJet is advancing 7.19%.
Among shipping stocks, Mercator Lines is adding 4.16% on reporting a 9% increase in its net profit for the 12 months to March. Essar Shipping is up 4.30%, GE Shipping is gaining 1.71% and Shipping Corporation of India is rallying 6.67%.
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