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“Recently Nifty50 rallied almost 13% from its recent low of 6,825.
However, investors may resort to profit booking ahead of the extended weekend. Till the settlement, Nifty50 is likely to touch 7,800 or 7,900 led by short covering among metals, banking and cement sectors” said AK Prabhakar, Head of Research, IDBI Capital.
He further adds, “Investors should reduce position at around 7,800-7900 and increase cash positions.
"Major correction in markets is expected in the second week of April and we expect Nifty50 to hit 6,600 to 6,300 in next 4-6 months”.
On the macro-economic front, the country’s current account deficit narrowed to $7.1 billion (1.3% of gross domestic product) in the quarter ended December 2015, from $ 7.7 billion (1.5% of GDP) in the year-ago period.
Besides, foreign portfolio investors bought shares worth a net Rs 1,396 crore yesterday, as per provisional data released by the stock exchanges.
The rupee depreciated 11 paise to 66.64 against the US currency due to higher demand for the dollar from importers amid a lower opening in the domestic equity market.
Among overseas markets, European stocks fell on Tuesday and safe-haven assets, gold and government bonds rose in price after two explosions at Brussels airport killed at least one person and left several others injured.
Travel sector stocks including airlines and hotels fell the most, pulling the broader indices down from multi-week highs as reports on the scale of the carnage in the Belgian capital unfolded.
In early European trade the FTSE 300 index of leading shares was down 1% at 1,326 points. Germany's DAX was down 1.2% and Belgian stocks were down 0.8%.
Earlier in Asia, stocks edged lower as hawkish comments from US Federal Reserve officials indicated that interest rate hikes could be on the way sooner rather than later.
Back home, FMCG majors ITC and Hindustan Unilever plunged 2% on profit taking after they gained in the previous session on hopes that the release of salaries and pensions to government employees under the seventh pay commission would boost consumption. Further, ITC has hiked prices of pack of 10 cigarettes by about 31%.
Financials were trading mixed after they gained on hopes of higher-than-expected rate cut by the central bank. SBI has raised Rs 500 crore from issue of bonds on a private placement basis.
SBI was up 0.4%. HDFC Bank and HDFC gained 1%-2%. ICICI Bank and Axis Bank slipped almost 1%.
Dr Reddy’s Labs fell by almost 4%. According to media reports, Camber Pharma has received US FDA nod for gValcyte drug. This approval is likely to impact the 8 – 9% of FY17 PBT since gValcyte contributes $140 mn to sales with 85% margins of Dr Reddys Lab.
Dr Reddy’s Lab currently holds 44% market shares in gValcyte. Therefore, Camber Pharma approval is negative for Dr Reddys Lab.
Adani Ports & Special Economic Zone dipped almost 2% after turning ex-dividend today for interim dividend of Rs 1.10 per share for the year ending 31 March 2016 (FY 2016).
Bharti Airtel has entered into an agreement with American Tower Corporation (ATC), through its subsidiary, Airtel Tanzania, to sell 1,350 towers in the latter country. Shares of Bharti Airtel fell by over 1%.
BHEL has commissioned another 270 Mw unit at Goindwal Sahib coal-fired power project in Punjab. Shares of BHEL gained by almost 4%.
Jindal Steel and Power has commissioned a 1.4 mtpa Rebar Mill at Sohar, Oman. Shares of JSPL were up 2%.
Government has extended by three months the tenure of A P Shah Committee looking into the dispute over natural gas migrating from state-owned ONGC's idle blocks in KG basin to neighbouring fields of Reliance Industries. Shares of Reliance Industries surged over 1%.
SMART MOVERS
Shares of tea companies were in focus and ended higher by up to 11% on the BSE on expectation that tea prices are likely to surge.
Rossell India, Williamson Magor & Company, Mcleod Russel India, Jay Shree Tea, Tata Global Beverages and Bombay Burmah Trading Corporation were trading higher between 2%-11%.
Shares of companies engaged in business related to defence sector rallied by up to 11% on the bourses after the government cleared new procurement policy.
Walchandnagar Industries, Astra Microwave Products, BEML, Bharat Electronics, Bharat Forge, Rolta India, Reliance Defence and Engineering and Himachal Futuristic Communications (HFCL) rallied between 2%-11%.
Kesoram Industries was locked in upper circuit of 10% at Rs 102 on the BSE on back of heavy volumes.
Indoco Remedies rallied 11% after the company received US Food and Drug Administration (USFDA) approval for Goa solid dosages plant.
JMC Projects (India) surged 7% after the company announced that it has recently secured new orders worth over Rs 930 crore.
TVS Motor Company ended higher by nearly 4%, extending its previous day’s 6% rally on the BSE, on back of heavy volumes.
Gloster soared 9% after the company announced bonus issue plan.
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