Mid market commentary June 06

Indian stock markets on Monday opened on a positive note, but have consolidated after rallying in the previous one week. The markets are marginally down, and have marginally corrected after the rally, ahead of the RBI meet. The bank stocks are in green ahead of the PSU meeting which is to be held today. Hence market breadth remains negative with 1144 advances and 1239 declines in BSE stocks, despite outperformance of broader markets. BSE Small cap is 0.2 per cent up and Mid cap remains flat.

On the sectoral front Bank index and Realty index are amongst the top gainers. Bank index is up by 50 points and reality index has surged by 12 points. Federal Bank and Bank of Baroda are the major gainers with 2.74, and 1.93 per cent gains respectively. HDIL and Prestige have carried on the green sentiment in Realty index with both the stocks surging by almost 3 per cent.

Telecom, Power, and Metal have plunged marginally. However, Oil and Gas, and Auto have plunged by 42 points and 26 points respectively.

Top Nifty gainers on Monday as at 11.50 am are Bank of Baroda, with a 1.75 per cent gain, Mahindra & Mahindra, GAIL India, SBI, and Eicher Motors, which have gained 1.52, 1.40, 1.20 and1.13 per cent respectively.

Top Nifty losers as at 11.44 am are Maruti Suzuki, Bharti Airtel, Bharti Pharma, Tech Mahindra, BPCL. All the shares are majorly down in the range of 1 to 2 per cent each.

Nifty 50 on Monday morning opened on a positive note and was trading around 8228.75 which was up by 8 points. However, as at12.06 pm, the index is currently trading at 8209.10, marginally down by 14.35 points.

Stocks to watch:

Lupin: Lupin shares are marginally down by 0.70 per cent, however the firm has received final approval from the US health regulator to market Voriconazole tablets, used for the treatment of fungal infections, in the American market.

Larsen and Toubro:  The shares of Larsen and Toubro have surged by 8 points on the news that firm’s construction arm has won orders worth Rs 2,161 crore across various business segments.

Nestle: Nestle India shares are down by 10 points; however, the firm's parent company has made a partnership with Ali baba group to sell its products online. Ali baba group is still struggling to leave its footprint in India.

SBI/ Bank of Baroda: The largest public sector bank is in focus as the Finance Minister Arun Jaitley is expected to meet all the executives to discuss prolonged distress of the banks. The shares of SBI and Bank of Baroda are up by 1.83 and 2.57 per cent respectively.

HDIL:  HDIL has surged by 4 per cent after the company on Monday has announced plans to sell land for an undisclosed amount.