The BSE Sensex traded flat on Thursday after posting a record closing high yesterday. Indian stocks tracked the weakness in Asian markets, which fell after a survey of Chinese manufacturers showed surprisingly soft results.
As of 11.50 a.m., the Sensex traded 17 points or 0.08 per cent lower at 21,320, while the Nifty traded 7 points lower at 6,332.
Markets have gained for the last three days, but trade has been extremely lacklustre. Corporate earnings have been above estimates so far, but PSU banks are yet to report their numbers. Analysts fear state-run banks to report further deterioration in asset quality amid the sharp slowdown in the Indian economy.
Sarvendra Srivastava maintained his bullish outlook on markets with targets of 6,400-6,450 and reversals at 6,128.
However, other analysts were cautious in the short term. Gaurang Shah of Geojit BNP Paribas Financial Services told NDTV that markets may rise to 6,400, but selling pressure is expected at higher levels.
Technical analyst Saumil Trivedi said the rise in markets has not been supported by volumes.
"Momentum indicators have been posting negative divergence, which does not augur well for a blast out," he added.
Banking stocks were under pressure on caution ahead of RBI's policy review on Tuesday. Other rate sensitives - realty and auto- also traded lower.
Previous expectations for the RBI to hold rates have been thrown into doubt after the central bank recommended making taming high consumer inflation a priority.
ICICI Bank traded 1 per cent lower. Among automakers Mahindra and Mahindra was down 2.7 per cent, while Bajaj Auto traded 1.11 per cent lower.
However, Larsen & Toubro gained as much as 3.5 per cent after the company's Q3 margins at 11.6 per cent beat some analysts estimates.
Corporate earnings continue to be in focus. M&M Financial shares fell as much as 8.5 per cent after Q3 profits fell on higher provisioning. KPIT Technologies shares plunged 13 per cent on Q3 earnings.
However, Cairn India shares gained 1.5 per cent ahead of its December-quarter results later in the day.
As of 11.50 a.m., the Sensex traded 17 points or 0.08 per cent lower at 21,320, while the Nifty traded 7 points lower at 6,332.
Markets have gained for the last three days, but trade has been extremely lacklustre. Corporate earnings have been above estimates so far, but PSU banks are yet to report their numbers. Analysts fear state-run banks to report further deterioration in asset quality amid the sharp slowdown in the Indian economy.
Sarvendra Srivastava maintained his bullish outlook on markets with targets of 6,400-6,450 and reversals at 6,128.
However, other analysts were cautious in the short term. Gaurang Shah of Geojit BNP Paribas Financial Services told NDTV that markets may rise to 6,400, but selling pressure is expected at higher levels.
Technical analyst Saumil Trivedi said the rise in markets has not been supported by volumes.
"Momentum indicators have been posting negative divergence, which does not augur well for a blast out," he added.
Banking stocks were under pressure on caution ahead of RBI's policy review on Tuesday. Other rate sensitives - realty and auto- also traded lower.
Previous expectations for the RBI to hold rates have been thrown into doubt after the central bank recommended making taming high consumer inflation a priority.
ICICI Bank traded 1 per cent lower. Among automakers Mahindra and Mahindra was down 2.7 per cent, while Bajaj Auto traded 1.11 per cent lower.
However, Larsen & Toubro gained as much as 3.5 per cent after the company's Q3 margins at 11.6 per cent beat some analysts estimates.
Corporate earnings continue to be in focus. M&M Financial shares fell as much as 8.5 per cent after Q3 profits fell on higher provisioning. KPIT Technologies shares plunged 13 per cent on Q3 earnings.
However, Cairn India shares gained 1.5 per cent ahead of its December-quarter results later in the day.
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