Nifty holds 8,100; NTPC surges 7% post Q2 nos, Vedanta falls

Benchmark indices are trading in a tight range with positive bias led by buying demand among pharma, banks and power shares. However, selling among FMCG and IT shares have capped the upside gains.

By 10:35 am, the Sensex was trading higher by 65 points at 26,903 while the Nifty gained 24 points at 8,135.

The top gainers from the Sensex pack are NTPC, Dr Reddy’s Labs, ICICI Bank, Bharti Airtel and SBI, all surging between 2-7%.

On the losing side side, Vedanta, ITC, Tata Motors, M&M and ONGC are down between 1-3%.

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Updated at 9:30 am

Markets have made a flat opening tracking mixed trend across the globe after Bank of Japan kept the key rates unchanged.

By 9:30 am, the Sensex was trading flat at 26,838 while the Nifty gained 4 points at 8,116.

The broader markets are however, outperforming the benchmark indices- BSE Midcap and Smallcap indices are up 0.2-0.5%. The market breadth is positive with 828 advances against 337 declines on the BSE.

On Thursday, markets finished lower for the fourth straight session following the expiry of October derivative contracts with blue chips taking a beating after US Federal Reserve rekindled hopes of an interest rate hike in the month of December.

"Nifty November future closed negative at 8142.70 levels. Market witnessed selling pressure in Power, Capital goods, Banking and Healthcare sector stocks while buying interest was seen in Consumer durables and Auto stocks. The market turnover increased by 20.84% in terms of number of contracts traded vis-à-vis previous trading day but in terms of rupees it increased by 20.51%," points out a note from Anand Rathi.

According to Angel Broking’s morning report,” In recent past, the Nifty had given a breakout from an ‘Inverse Head & Shoulder’ pattern in the daily chart. The neckline breakout levels of 8,050 could now act as a strong support for the index.

Thus, going forward, 8,088 - 8,050 becomes a major support zone for the index. In case, if Nifty manages to hold this support area, then we may witness some recovery towards 8,200 - 8,250 levels. However, a failure to do so may lead to extended correction towards 8,000 level.

Meanwhile, foreign portfolio investors (FPIs) bought shares worth a net Rs 174.12 crore yesterday as per provisional data released by the stock exchanges.

RESULT CALENDER

Apollo Tyres, Bharat Elestronics, ICICI Bank, IPCA Labs, ITC, L&T among others are set to announce their quarterly results today

GLOBAL MARKETS

Asian shares were down on Friday and on track for a weekly loss as investors, anxious over faltering global growth, fretted about the possibility that the U.S. Federal Reserve could still raise borrowing costs this year.

Data released overnight showed U.S. gross domestic product increased at a 1.5 percent annual rate, just shy of the consensus forecast for 1.6 percent growth and slowing from a 3.9 percent rise in the second quarter. But solid consumer spending kept alive the possibility that the Fed could deliver an interest rate increase in December.

The US central bank held policy steady on Wednesday and left the door open to hike interest rates for the first time since 2006 at its Dec 15-16 meeting.

SECTORS & STOCKS

BSE Healthcare, Realty and Power indices are up almost 1% each. However, sectors like FMCG and Auto are trading in negative zone.

The top gainers from the Sensex pack are Dr Reddy’s Labs, ICICI Bank, Cipla, NTPC, SBI and Tata Steel.

Dr Reddy's Laboratories has reported a 26% increase in consolidated net profit at Rs 722 crore for the quarter ended September, on the back of higher sales growth and sustained product margins from the company's US generics business.

Cipla has sold its entire 25% stake in Biomab Holding Limited, a biosimilars development company in China to its majority owners for $ 25 million (about Rs 162 crore), the drug maker announced yesterday.

NTPC, the country’s largest power generator, posted a 40 per cent increase in profit at Rs 2,898 crore for the quarter ending September, compared to Rs 2,072 crore during same period last financial year.

On the losing side, ONGC, Vedanta, ITC, Tata Motors and M&M are down 1-2%.

ONGC Videsh Ltd (OVL), the overseas investment arm of state-run explorer Oil and Natural Gas Corporation (ONGC) is planning to double its investments in Africa from the current $8 billion over the next three years.

Increasing cigarette taxes may have the unintended consequence of driving consumers to higher nicotine content and more dangerous cigarette products, says a new study co-authored by an Indian-origin researcher.

With Reuters input

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