NEW DELHI: Domestic stocks were off to a positive start on Thursday, tracking a firm trend across Asian markets. Upside was, however, capped as investors were cautious over Brent crude prices that edged higher to a new three-year peak earlier in the day. Valuation concerns and selling in IT names also kept gains limited for domestic indices.
At 9.24 am, the BSE Sensex was trading 139 points, or 0.23 per cent, higher at 61,399.42 The index had fallen in the previous two sessions.
The Nifty50 rose 57.05 points, or 0.31 per cent, to 18,323.65. The 50-pack index topped 18,350 in opening trade.
Kotak Mahindra Bank, Power Grid and Sun Pharma rose over 1 per cent. HCL Tech tanked 3.23 per cent to Rs 1,192.50. TechM, TCS and Infosys fell up to 1.8 per cent.
A recent rise in domestic stocks has made the Street cautious with foreign brokerage UBS on Wednesday suggesting Indian stock valuations have turned unattractive. The foreign brokerage assigned an ‘underweight’ to India while double upgrading the rating for China equities to ‘overweight’.
“Investors should maintain caution before making fresh entry in mid- and- small-cap stocks after Wednesday’s market fall,” Said Mohit Nigam of Hem Securities.
IRCTC gained 2.18 per cent to Rs 4,529.40 after falling 31 per cent in the previous two sessions. Havells India dropped 7.85 per cent after reporting a 7.34 per cent decline in its consolidated net profit at Rs 302.39 crore for September quarter.
Varroc Engineering climbed 7.42 per cent to Rs 315.70 after HDFC Asset Management Company acquired 0.58 per cent stake in the company via open market transactions on October 19, increasing its shareholding to 5.11 per cent from 4.53 per cent earlier.
NBCC added 1 per cent on bagging orders worth Rs 375 crore in Haryana, Delhi, and Rajasthan as a project management consultant.
Jindal Stainless also gained 1 per cent after the steel maker commissioned a precision strip mill having a capacity of 26,000 tonnes per annum at its plant in Hisar.
Meanwhile, Asian Paints, JSW Steel, ICICI Lombard General Insurance, Mphasis, IDBI Bank, Macrotech Developers, Concor, Biocon, TVS Motor, Indian Hotels, IEX and IndiaMART InterMESH are among companies that will announce their September quarter results today.
Globally, most Asian markets were trading higher.
Late on Wednesday, China’s Evergrande said it abandoned a $2.6 billion sale of a stake in a subsidiary and that it had made no progress on other sales, which sent its shares 10 per cent lower at the open in Hong Kong trading. That said, shares in rival developers rose after Chinese officials said the trouble in the sector would not be allowed to escalate into a full-blown crisis.Internet Explorer Channel Network