Nifty to remain rangebound till budget - Consortium

Nifty declined over half a percent to close at 5998.90, blelow psychplpgical level at 6000. Disappointing results by Bharti Airtel and BHEL impacted sentiments in the market. Moreover, HSBC January manufacturing PMI falls 53.2 vs 54.7 December.Both, Tata Motors and Ultratech declined intra-day by nearly 10% on freak trades.

Oil India's 10% FPO has been oversubscribed resulting in a nearly Rs30bn outflow. It has declined by 3% to close at Rs525 after touching day's high of Rs538.Realty, Auto and Banking stocks witnessed sharp declines. However Defensive sectors like Pharma, FMCG and Consumer Durable stocks were in limelight. Pidilite surged by 6% to close at Rs246 after touching high of Rs262. Marico has gained by 2% to close at Rs230.

Oil marketing companies gained after a media report that OMCs are likely to hike diesel price by Rs40-50 paisa per liter. Indian Oil, BPCL and HPCL have gained by 2-3% each.

Realty stocks witnessed mixed bag (Index down 1.1%). DLF declined by 3.5% to close at Rs368 due to profit booking. However India Bull Real has gained by 2% to close at Rs79.

Auto stocks witnessed profit booking (Index down 1%). Both Hero Honda and M&M have declined marginally. However Maruti has gained by 2% to close at Rs1610 due to impressive monthly sales number.

Pharma stocks witnessed fresh buying (Index up 0.8%). Lupin has gained by 1% to close at Rs610 after touching day's high of Rs626 due to impressive quarterly result. Both Ranbaxy and Sun Pharma gained marginally.

For the day coming by, global cues are positive as Asian shares are trading higher buoyed by U.S. data which maintained expectations for a mild recovery and continued loose Federal Reserve monetary policy to support it, bolstered by solid manufacturing data from Europe and China.

The Dow Jones industrial average rose to 14,000 for the first time since October 2007 and the Standard & Poor's 500 Index hit its highest point since December of that year.

On the back of strong global cues, Indian markets are expected to open on a positive note. However sustained large selling by DIIs is putting pressure on markets though FIIs remain buyers in the cash markets. We expect Indian markets will not crack down before the budget and the major directional move could happen only after the budget. Meanwhile Indian markets are expected to remain in range of 5950 - 6100.

Source : Equity Bulls

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