Markets to remain subdued - Consortium

Sensex declined by half percent to close at 19895. On the back of January F&O expiry, the market witnessed some profit booking. PSU banking stocks witnessed smart rally after PNB announced better than expected quarterly result. However ICICI Bank reported inline with expected result.

Both Asian and European markets declined after US GDP number missed the estimates. Short covering was seen in the auto, Realty and Capital goods stocks. However Tech stocks witnessed profit booking. PSU banking witnessed smart rally.

PNB surged by 9% to close at Rs912 after touching high of Rs920. Other PSU banks like Bank of Baroda, Union Bank and Bank of India surged by 4-5% each. However ICICI Bank declined by 2% to close at Rs1191after the quarterly result. Axis Bank surged gained marginally to close at Rs1505 on the back that the company has raised Rs47.3bn selling 34mn shares under QIP at Rs1390 per share.

Realty stocks witnessed smart rally (Index up 1.4%). DLF has gained by 2% to close at Rs378. Media report that the company to sell 150MW capacity wind turbine to BLB Vayu worth Rs2.82bn. India Bull Real HDIL gained by 2% and 1% respectively.

Oil & Gas stocks witnessed mixed bag (Index down 0.4%). Reliance declined by 2% to close at Rs887. However PSU oil companies like Oil India has gained by 2.6% to lose at Rs540. Government set Oil India floor price at Rs510 per share.

Auto stocks witnessed profit booking (Index down 0.1%). Tata Motors declined by half percent to close at Rs298. However Hero Honda surged by 1.5% to close at Rs1822 due to short covering. Maruti and M&M declined by 1% each For the day coming by, Indian markets are expected to open flat on mixed global cues.

Asian markets are largely subdued as negative lead from Wall Street weigh. Data released on China's manufacturing sector was also in focus. The official factory purchasing managers' index (PMI) eased in January to 50.4 from December's 50.6, the National Bureau of Statistics said on Friday, underscoring that the economy is making only a mild recovery from its worst slowdown in 13 years.

Indian markets is witnessing continuous selling around 6075 - 6100 level. Nifty has been grinding lower on daily basis despite sustained FIIs buying but is negated by continues selling by DIIs. Though markets are likely to remain subdued but any sharp sell as of now is not expected till the budget. Nifty has multiple supports at 6010/5988 and 5940. On the upside Nifty faces resistances at 6050 - 6060 levels.

Source : Equity Bulls

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