Sensex opens in green on positive global cues; Axis Bank in red

The S&P BSE Sensex opened on a positive note led by gains in realty, power and capital goods sectors on the back of supportive cues from global peers. Shares of Axis BankBSE 2.69 % were in action after 9 per cent stake sale by SUUTI.

"Expect market to open on a positive note on account of global cues. US markets gained half percent and Asian markets are up marginally. We are positive for investment on oil companies like BPCLBSE -0.85 %, HPCLBSE -2.61 % and ONGCBSE -2.68 % as Brent crude hovers around lower levels of $106/bbl and rupee is also lower at 61. Today SUUTI will be selling 9% stake of Axis Bank via block trades of 4.22 cr shares in a price range Rs 1290-1357. We are positive on Axis Bank for investment. Axis Bank is trading at 1.5x FY15E P/B," said Motilal OswalBSE -0.11 % report.

At 09:25 a.m.; the 30-share index was at 21,816.54, up 76.45 points or 0.35 per cent. It touched a high of 21,870.11 and a low of 21,814.69 in trade today.

The Nifty was at 6,509.80, up 26.70 points or 0.41 per cent. It touched a high of 6,522.90 and a low of 6,509.20 in trade today.

"Despite strong pessimism seen across the globe, our markets managed to hold their range and shed only half a percent as compared to the previous close. The chart structure is still unchanged and we reiterate our view that, sooner or later we expect the index to move towards 6,600 - 6,630 levels. On the flip side, 6,440 - 6,400 would remain as a strong support zone for the index and any correction should be utilized to create long positions," said Angel Broking note.

The S&P BSE Midcap Index was up 0.69 per cent and the S&P BSE Smallcap Index was 0.62 per cent higher.

Among the sectoral indices, the S&P BSE Realty Index was up 0.94 per cent, the S&P BSE Capital goods Index was 0.72 per cent higher, the S&P BSE Power Index gained 0.75 per cent and the S&P BSE IT Index moved 0.49 per cent higher.

GAILBSE 0.91 % (up 1.21 per cent), BHELBSE 1.65 % (up 1.16 per cent), WiproBSE 3.09 % (up 1.07 per cent), Bharti AirtelBSE -1.02 % (up 1.03 per cent) and M&M (up 0.91 per cent) were among the Sensex gainers.

Axis Bank (2.31 per cent), Sun PharmaBSE -1.68 % (0.30 per cent), ITCBSE 0.49 % (0.24 per cent) and Hero MotoCorpBSE -1.94 % (0.21 per cent) were the only index losers.

Shares of Axis Bank were down on profit booking as the Government sells 9 per cent stake or 4.22 crore shares held by SUUTI in the private sector bank through block trades on bourses.

Currently SUUTI holds 20.72 per cent stake in Axis Bank. The price band for same is Rs1,290 to Rs1,357 per share which would help fetch between Rs5,445cr and Rs5,726cr. The proceeds will help the government bridge the fiscal deficit for FY2013-14

The market breadth was positive on the BSE with 595 gainers against 127 losers.

The foreign institutional investors bought shares worth Rs 722.02 crore while domestic institutional investors were net sellers worth Rs 563.29 crore on Thursday as per the provisional data from the National Stock Exchange.

The US markets gained on the back of positive economic data. The Dow Jones industrial average rose 108.88 points or 0.67 percent, to end at 16,331.05. The S&P 500 gained 11.24 points or 0.60 percent, to finish at 1,872.01. The Nasdaq Composite added 11.684 points or 0.27 percent, to close at 4,319.286.

Article taken from ET :

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