Sensex, Nifty trade modestly higher; Hindustan Copper up on strong results

Last Updated: Fri, May 24, 2013 06:33 hrs

Amid alternate bouts of buying and selling, the market is up in positive territory, having recovered after a sharp fall from higher levels. The mood is quite cautious due to a lack of positive triggers. Investors appear somewhat wary of indulging in any strong buying due to lingering worries about the near term outlook for the economy.

Some battered down stocks from capital goods, realty and metal sectors are trading sharply higher. A few stocks from power, banking and PSU sections have also moved up on short covering and bargain hunting.

Automobile, consumer durables and FMCG stocks are mostly flat, while information technology and healthcare stocks are trading weak.

The Sensex is now up by around 40 points or 0.2% at 19,714.35, well off the day's low of 19,568.49. The Nifty is up with a gain of 17.60 points or 0.3% at 5984.65, after declining to 5936.80 earlier in the day.

Despite a weak quarterly earnings report, Tata Steel is up in positive territory with a gain of nearly 4% at Rs 312, due largely on short-covering. Larsen & Toubro, which saw some weak spells recently following disappointing results, is trading 2.6% up at present.

ICICI Bank, Coal India and NTPC are up 1.5% - 2%. Tata Power is trading 1.3% up and Mahindra & Mahindra is up by about 1%. Dr Reddy's Laboratories, Reliance Industries, Jindal Steel & Power and HDFC are up with modest gains.

Lupin, Reliance Infrastructure, BPCL, DLF, Cairn India, Punjab National Bank, Grasim Industries, IndusInd Bank and ACC are up with sharp to moderate gains.

Hindustan Copper is up more than 2.5% following the company reporting a near 37% jump in net profit at Rs 188.09 crore for the quarter ended March 31, 2013 from the corresponding quarter last year.

Sun Pharmaceutical Industries is down 2.3% at Rs 982.50. The stock plunged to a low of Rs 966 earlier in the day. The stock is down following its oversubsidiary Taro Pharmaceutical reporting lower-than-expected operating profit margin for the fourth quarter ended March 31, 2013. For the fourth quarter, net sales pf Taro increased 13.8% to US$165.1 million from US$145.1 million and net profit inched up 4.2% to US$49.2 million from US$47.2 million.

Hindalco, Tata Consultancy Services, Cipla, BHEL, Bharti Airtel, Bajaj Auto, ITC, Ultratech Cement, Asian Paints and ONGC are also trading weak.

Wockhardt plunged nearly 10%, extending the 20% loss it suffered in the previous session. The stock is trading weak following the US drug regulator imposing an import alert on a plant operated by the company. The US Food and Drug Administration issued an "import alert" on medicines manufactured at Wockhardt's plant at Aurangabad in Maharashtra after the plant failed an FDA safety inspection.

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