Markets open flat, Hindalco surges 2%

Markets opened flat tracking lacklustre cues in the global markets as commodity prices firmed up renewing concerns of inflation and further rate hike. The Nifty was up 2 points, at 5,553 and the Sensex gained 23 points, at 18,555,

Brent Crude rebounded to $114/bbl and silver also climbed 5% leading the recovery in the precious metals as Dollar Index fell to 74.6 from 74.7 after breaking out above the 75 level.

US Markets bounced back as energy and natural resource companies surged led by rebound in commodities. The Dow Jones Industrial Average gained 0.4%, the Standard & Poor’s 500 Index added 0.5% and the Nasdaq Composite rose 0.6%.

Asian markets were trading flat in the morning session. Japan's Nikkei Stock Average was down 0.2% driven by potential power shortages. Hang Seng surged 0.8% as crude firmed up boosting energy shares. Shanghai Composite was also up 0.3%. South Korea's Kospi Composite fell 0.4%, Taiwan's weighted index was up 0.1% and Singapore's Strait Times gained 0.3%.

Back in India investors continue to wait on the sidelines and are watching the movement in commodity prices very closely. If commodities continue to remain at elevated level it will put pressure on operating margins of the companies wleading to earnings downgrades going forward.

On the technical charts, Nifty continued to form higher tops and bottom indicating that the markets are in a bear trend. Edelweiss in the morning note said "we continue to maintain an upward bias in the absolute near-term and look for a test of 5630-5650 resistance clusters. On the downside the index is pivoted at 5500 on a daily closing basis."

According to the data available from Bombay Stock Exchange, FIIs were net buyers of Rs 196 crore after being net sellers for past 10 sessions. While DIIs were net sellers of Rs 126 crore on Monday.

Among the new listing, Future Ventures (Private Equity firm) a subsidiary of the Future Group led by Kishore Biyani dipped 10% to Rs 9 on listing.


From the individual stocks, Hindalco Industries surged 1.9% after fourth quarter earnings beat expectations; net profit rose 6.7% to Rs 709 crore. Power Finance Corporation follow-on-public offer (FPO) opened today and the stock was down 1.6% at Rs 209.4. The price band of the FPO is set between Rs 193-203 per share and government plans to raise around Rs 4,700 crore.

BSE Bankex was the top sectoral loser, down 0.2%. HDFC Bank fell 0.5%, ICICI Bank lost 0.4% and Bank of India declined 0.7%. While, the BSE FMCG index was the top gainer, up 1%. Hindustan Unilever was up 3.4%, Dabur India gained 0.9% and Nestle was up 0.9%.

Top gainers on the Sensex were Hindustan Unilever, up 3.4%, Hindalco, up 1.9% and Sterlite gained 1.4%. Top losers were JP Associates and Tata Power, down 0.5% each, and Hero Honda declined 0.4%.

Braoder markets were trading flat. Market breadth was marginally positive, 517 stocks advanced for 498 declining stocks.