Amid alternate bouts of buying and selling in front line stocks, the benchmark indices Sensex and Nifty are up with modest gains this afternoon. After a firm start and a subsequent setback, the market managed to bounce back into positive territory, but has been struggling to move up significantly due to lack of support at higher levels.
The Sensex, which declined to 19,317.38, dropping more than 300 points from the day's high of 19,622.68, is currently up 71.72 points or 0.37% at 19,459.22. The Nifty is up marginally at 5909.95, more than 40 points off the day's low of 5867.80.
Even as FMCG stocks hold firm, shares from realty, capital goods, oil and automobile stocks are down in negative territory on profit taking. Bank, power and PSU stocks are also trading weak, while metal and information technology stocks are finding modest support. A few stocks from healthcare space have moved up smartly.
Hindustan Unilever continues to trade firm following an open purchase offer from the company's parent Unilever Plc. The stock is up with a hefty gain of 17.5% at Rs 585. ITC is trading 2.7% up at Rs 333.
Sterlite Industries is up nearly 2% on strong results. Dr Reddy's Laboratories, Wipro, Coal India, Sun Pharmaceutical Industries, Jindal Steel & Power and ICICI Bank are up 0.75% to 1.5%.
Colgate Palmolive, Nestle India, United Spirits, Glaxo Smithkline Consumer Healthcare, Shriram Transport Finance, Neyveli Lignite Corporation, Bata India, TTK Prestige, HCL Technologies, Madras Cements, Shree Cement, Britannia Industries and Zee Entertainment are also up with strong gains.
Dabur India, which rose to Rs 155, is currently at Rs 151.50, up 2.5% from its previous closing price. The company has posted a net profit of Rs 159.67 crore for the quarter ended March 31, 2013 as compared to Rs 132 crore for the quarter ended March 31, 2012.
Hindalco has lost around 2.8%. Larsen & Toubro, HDFC Bank, ONGC, HDFC, State Bank of India, Bajaj Auto, BHEL, Tata Steel and Tata Power are trading lower by 1% - 2.2%. Mahindra & Mahindra, Reliance Industries, Maruti Suzuki, Bharti Airtel and GAIL India are also trading weak.
GMR Infrastructure, IFCI, Financial Technologies, JP Power, HDIL, Engineers India, TV 18, Hindustan Petroleum Corporation, Jaiprakash Associates, Reliance Power, Exide Industries, Reliance Infrastructure, Unitech, Oriental Bank of Commerce, Reliance Communications and CESC are down 3% - 4.5%.
According to reports, the World Bank has scaled down India's growth forecast to 6.1% for the current fiscal from 7% projected six months ago. The decline in the growth forecast is largely due to the decline in agriculture sector which is expected to grow at 2% during 2013-14 against the previous estimate of 2.7% despite normal monsoon projection.
However, the multi-lateral funding agency said that India is regaining economic momentum and growth is expected to recover gradually to its high long-term potential. As per the latest India Development Update of the World Bank, Indian economy would grow by 6.1% in 2013-14 on account of robust domestic demand, strong savings and investment rate.