Sensex comes off higher levels, but looks headed for bright close

Last Updated: Thu, Nov 14, 2013 09:21 hrs

Despite some front line stocks giving up some gains due to lack of support at higher levels, the market stays in positive territory in afternoon trade and looks well on course to end a seven-session losing streak today.

A firm trend in global markets amid renewed hopes that the U.S. Federal Reserve will keep its stimulus plan in force for atleast another couple of months has brought investors back to the ring.

Though the initial buoyancy is missing, the market is fairly well placed in positive territory this afternoon with several blue chip stocks trading firm on fairly sustained buying support. Investors are tracking quarterly results for direction. The rupee's recovery against the U.S. dollar is aiding sentiment to an extent.



A weak inflation report appears to be prompting investors to tread cautiously. According to the data released by the government today, the annual rate of inflation, based on monthly WPI, stood at 7% (provisional) for the month of October, 2013, as compared to 6.46% (provisional) for the previous month and 7.32% during the corresponding month of the previous year. Build up inflation rate in the financial year so far was 6.00% compared to a build up rate of 4.66% in the corresponding period of the previous year.

The vegetable inflation, as a result of higher onion prices, stood at 78.4% in October against 89.4% in the previous month.

The food inflation, which the Reserve Bank of India Governor said is worringly high, stood at 18.19% against 18.40% in September this year. Fuel and power prices rose 10.33% from 10.08%. The WPI inflation for August was revised to 6.99%.

The Sensex, which rose to 20,568.99 earlier in the day, is currently up 207 points or 1.03% at 20,401.40. The Nifty is up 57.20 points or 0.95% at 6046.80, more than 50 points off the day's high of 6101.65.

Bank, automobile, realty and capital goods stocks continue to trade firm. Several stocks from the power space have also posted strong gains.

Metal and oil stocks are faring well too. FMCG and PSU stocks are finding modest support, while information technology and healthcare stocks have come off their highs.

Tata Power is up 1.3% at Rs 79. The company has posted consolidated net profit of Rs 74.97 crore for the quarter ended September 30, 2013 as compared to net loss of Rs 83.80 crore for the quarter ended September 30, 2012. Total income increased from Rs 7768.22 crore for the quarter ended September 30, 2012 to Rs 8471.78 crore for the quarter ended September 30, 2013.

HDIL is up 3.7% at Rs 43 despite lower earnings. The company has posted a net profit Rs 42.70 crore for the quarter ended September 30, 2013 as compared to Rs 140.55 crore for the quarter ended September 30, 2012. Total income increased from Rs 267.24 crore for the quarter ended September 30, 2012 to Rs 443.90 crore for the quarter ended September 30, 2013.

Alstom T & D India Ltd has announced that it has bagged two substation orders from AP Transco. The stock is up more than 3% at Rs 165.80.

Strides Arcolab Limited has posted a net profit of Rs 2.22 crore for the quarter ended September 30, 2013 as compared to Rs 30.11 crore for the quarter ended September 30, 2012. The stock is up in positive territory with a modest gain.

IRB Infrastructure has posted a consolidated net profit of Rs 106.81 crore for the quarter ended September 30, 2013 as compared to Rs 120.97 crore for the quarter ended September 30, 2012. IRB shares are up more than 6% at Rs 88.10 at present.

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