Mumbai: The market snapped 8-day losing streak amid volatile session and closed with marginal gains Monday. The support was led by FMCG, metal, technology and banks stocks, but the upside capped by healthcare and capital goods majors.
The BSE Sensex was up 18.24 points at 19182.26, and the NSE Nifty gained 7.50 points to finish at 5685.40 while the BSE Midcap and Smallcap indices advanced 0.3 per cent each.
Abhijit Paul, founder of Alphative Advisors LLP expects the Nifty to bounce back by a-per cent-and-a-half over the next couple of days.
"The market is oversold. Sentiments are fairly weak, poised for a short-term bounce. The first level would be close to 5,800-mark and may extend further up. But in a market of this kind, my expectations are low. It is too late to go short in the market and makes sense to go contra long," he adds.
Shares of state-run capital goods major BHEL slumped 19 per cent on dismal performance during April-June quarter and downgrades by brokerages. Net profit halved on yearly basis to Rs 465 crore while operating profit margin dipped 820 bps to 6 per cent in first quarter. The company received just Rs 1470 crore worth of orders in Q1 while its order book position declined 19 per cent year-on-year to Rs 1,08,000 crore during the quarter. Goldman Sachs has a sell call on the stock, while Deutsche Bank has cut its target price to Rs 126 from Rs 169 on the stock.
Oriental Bank of Commerce rallied 6 per cent after the fall in slippages and restructured assets during the quarter while Punj Lloyd surged 8 per cent post the company posted a profit of 40 crore as against a loss of Rs 13.4 crore on yearly basis.
Power Finance Corporation too was excited in trade today, rising nearly 12 per cent after net profit grew by 23 per cent and net interest income rose by 40 per cent, but on the flip side, GSFC lost 2 per cent as it reported a big drop in profits to Rs 5.5 crore from Rs 172.7 crore.
TV Today Network was locked at 20 per cent upper circuit after the media company posted a net profit at Rs 12 crore in first quarter as against loss of Rs 35 lakh in a year ago period while the profit doubled sequentially from Rs 6.36 crore.
Tata Chemicals shares declined over 2 per cent as its first quarter consolidated net profit fell by 30 per cent year-on-year to Rs 75.2 crore.
Hindustan Construction Company surged 17.5 per cent today, continuing its upward journey for the second consecutive session. On Friday, it was locked at 20 per cent upper circuit.
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