Markets erase losses

After a weak opening, benchmark indices have recouped the early losses and are trading in the positive territory led by IT major TCS contributing the most to the gains after US-based Cognizant reported 9.7% growth in net profit for the quarter to $382.9 million compared with the corresponding period last year.

At 10.35 AM, the 30-share Sensex is 45 points higher at 27,535 levels and the 50-share Nifty is 8 points up at 8,340.

Kotak Mahindra Bank, Dabur India, ABB India, NIIT Technologies and Pfizer are among companies that will announce their respective earnings for the March quarter later during the day.

RUPEE

The rupee opens weaker at 63.54 per dollar after a long trading holiday as foreign flows into debt have been slowing.

CRUDE

Brent crude oil futures slipped towards $66 a barrel on Tuesday, falling from a 2015 high, as Saudi Arabia considered halting bombing in Yemen to allow the delivery of aid, which eased concerns about oil supply from the Middle East.

GLOBAL MARKETS

Asian shares are trading cautiously on Tuesday as investors wagered Australia would become the latest country in the region to inject more policy stimulus into its economy.

Liquidity was lacking with markets in Japan, South Korea and Thailand on holiday and little in the way of major economic data on the docket for Tuesday. The pivotal release of the week, US payrolls, is not until Friday.

Australia's main index rose 1.1% as investors waited to see if the country's central bank would cut interest rates to a record low of 2.0% as many expect.

Following positive momentum from Europe, as investors looked to Federal Reserve speeches and economic data for signals on the timing of a rate hike, US stocks closed higher. 

On Wall Street, the Dow had ended Monday up 0.26%, while the S&P 500 gained 0.29% and the Nasdaq 0.23%.

KEY STOCKS

On the sectoral front, BSE IT, Teck and Realty, Capital Goods indices are trading higher up to 1.5%. However, BSE Power index is trading lower up to 0.3%.

US-based Cognizant reported 9.7% growth in net profit for the quarter to $382.9 million compared with the corresponding period last year. Reacting to the news, TCS, Wipro, Tech Mahindra are trading higher up to 1.5%.

The ministry of finance has cut export duty on iron ore (for 58% fe grade and below) from 30% to 10% from June 1, 2015. Tata Steel and Vedanta are trading higher up to 3.5%.

Hindalco need not apply for fresh environment clearances (EC) for four blocks allotted to them in the recent auction as the government has transferred to them the approvals granted to the earlier allottees. The stock was up 1%. 

SKS Microfinance has registered over 49 per cent rise in its net profit at Rs 40.54 crore for the last quarter ended March 31, 2014-2015. The stock is up 6%.

Sun Pharma’s subsidiary Taro Pharma hiked prices of its two products Enalapril Maleate and Econazole nitrate cream in US. Both drugs together could add incremental sales of $20-25 million. The move can boost Taro's current run-rate of sales by 3 per cent and EBITDA by 4 per cent. Su Pharma is up 1%.

ONGC extended its yesterday’s rally and is up 2% on reports that the government will foot the entire subsidy bill that oil marketing companies incur on selling LPG and kerosene below market prices in FY2016. So far, ONGC, Oil India and Gail had to share a part of their profits to finance the subsidy burden of downstream firms such as Indian Oil, BPCL and HPCL.

Engineering and construction giant Larsen & Toubro (L&T) has made a renewed bid to secure mining rights over Sijimali and Kutrumali bauxite deposits across Kalahandi and Rayagada districts after the enforcement of the Mines & Minerals (Development & Regulation) Act, MMDR Act, 2015. The stock is up 1%.

DLF Ltd is likely to raise about Rs 3,600 crore this quarter through the issue of securities, backed by its IT-SEZ, as part of strategy to replace costlier debt, according to reports. The stock is up 2%.

Shares of Ashapura Intimates Fashion has rallied 11% to Rs 299, also its record high on the BSE, in early morning trade after DSP Blackrock Mutual Fund bought more than 3% stake in the company for about Rs 13.75 crore via open market purchase.

Top four mobile carriers including Bharti Airtel have reduced roaming charges for their subscribers effective April 30, 2015. The stock is down 1.6%.

Auto shares which climbed yesterday on the back of good sales numbers have slipped in red on account of profit booking. M&M, Bajaj Auto and Maruti Suzuki are trading lower up to 2.5%.

Notable losers on the Sensex include Cipla, Coal India, HDFC, ITC and NTPC down between 1-2%.

The market breadth is firm on the BSE with 823 advances versus 496 declines.

The broader markets, BSE Midcap and Smallcap indices are outperforming the larger peers and are up 0.6% each.