Benchmark indices continue to trade in a tight range in the late noon trades as investors remain cautious a day ahead of Reserve Bank of India’s policy review. Stock specific action is evident across the bourses.
Meanwhile, services sector growth in India eased marginally due to rise in input costs during March, but new business orders showed improvement and staffing levels of the companies also increased, according to HSBC survey which dampened the sentiments.
The HSBC India Services Business Activity Index, which tracks changes in activity at Indian service companies on a monthly basis, eased to 53.0 in March from 53.9 in February, indicative of a moderate rate of expansion that was slightly weaker than in the prior month.
Oil futures climbed more than $ 1 a barrel on Monday, after Saudi Arabia raised prices for crude sales to Asia for a second month, signaling better demand in the region.
Karvy has raised Dr.Reddy’s price target by 5.8 percent to 3,915 rupees with a buy rating. The stock is up over 1%.
The Government will move the GST Constitutional Amendment Bill in the Lok Sabha in the next few weeks. From the consumer durables pack, PC Jeweller, TTK Prestige, Titan, Bajaj Electricals, Whirlpool are trading higher between 0.5-4%.
Bajaj Auto’s bike sales were down by 22 per cent in March 2015 to stand at around 2.1 lakh units versus 2.7 lakh units in the same month of 2014. The stock is trading lower up to 1%.
Banking stocks are losing sheen on caution that the RBI will not go in for a rate cut tomorrow due to unseasonal rainfall which has destroyed crops and is likely to put pressure on the inflation. Axis Bank, HDFC Bank and ICICI Bank are trading lower up to 1.5%.
SBI is down 0.5% after the state-owned bank allotted 10.04 crore shares on preferential basis to Government of India at Rs 295.59 per equity share.
NTPC is up 0.7% amid reports that the country’s largest power producer will more than double its current installed capacity to 90,000 MW in the next ten years.
Mahindra and Mahindra’s (M&M) South Korean subsidiary SsangYong Motor has sold a total of 12,870 units in March 2015 – 7,719 units in domestic sales and 5,151 in exports. The stock is up nearly 3%.
In the broader market, BSE Midcap and Smallcap indices are trading high up to 1%. The market breadth is strong on the BSE with1,495 gainer versus 905 losers.