Sensex climbs modestly at start...Nifty stays above 5900

BSE Sensex was trading at 19,781, up 94 points over the previous close.

The Indian market has commenced the new trading session with a positive bias, but trading is likely to be muted amid mixed global cues. The Large-Cap shares may remain subdued while the non-index counters could continue to hog the limelight. Market breadth is positive.

Investors seem to be brushing aside concerns over rising crude oil prices and its impact on inflation and monetary policy. China yesterday hiked key lending and deposit rates by 25 bps to check inflation. Also, central banks in the eurozone may announce plans to increase borrowing costs this week. The US Federal Reserve is also debating when to exit from the current stimulus.

At 09: 28 (IST), the BSE Sensex was trading at 19,781, up 94 points over the previous close.
NSE Nifty was trading at 5,934, up 24 points over the previous close. It had earlier touched a day's high of 5,935 and a day's low of 5,907. It opened at 5,908.

The BSE Small Cap index and the BSE Mid Cap index were trading flat.

Sesa Goa, BPCL, Grasim, Sterlite, ONGC, IDFC, Hindalco, Maruti, M&M and HUL were among the notable leaders in the Sensex and the Nifty.

Ranbaxy, Sun Pharma, Kotak Mahindra Bank, ITC, Amuja Cement, Infosys, PNB and HDFC Bank were among the notable losers in the Sensex and the Nifty.

The market breadth is positive with 1,971 shares rising and 959 shares falling.

In global action, stocks in Asia are mixed, with Japan in the red. The Chinese market has shrugged off the latest monetary tightening move by its central bank. Markets in the US and Europe finished flat amid anxiety about the future direction of monetary policy.

Outside equities, gold prices have touched new all-time highs amid persistent safe haven buying as investors fret over the MENA turmoil, eurozone debt worries and high crude oil prices. Oil prices were hovering around 30-month peak while the dollar gained.

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Audi launches R8 Spyder at Rs. 1.47 crore

German luxury car-maker Audi on Friday launched its two-seater sports car R8 Spyder, which is priced at around Rs. 1.47 crore (ex-showroom Maharashtra).

Powered by a 5.2 litre, V10 engine delivering 525 HP, the car zooms from zero to 100 kmph in 4.1 seconds. Spyder will be available for customers from next month onwards. It weighs just 1.7 tonnes and has a top speed of 313 kmph.

The car, the second in the R8 series to be launched in India, has "immense power, eager response, powerful acceleration and free-revving," Audi India Head Michael Perschke said.

"It will add to the spurring demand for excellence in auto performance and will allow us to build upon our leadership position in the super sports car segment," he said.

At present, Audi sells its sedans A4, A6 and A8, sport utility vehicles Q5 and Q7, besides the original R8, in India, one of the largest auto markets in the world.

Read more at: http://profit.ndtv.com/news/show/audi-launches-r8-spyder-at-rs-1-47-crore-146363?cp

Crude oil price will remain a key concern: Kotak AMC

Domestic market has turned volatile on aggressive crude oil prices. In the view of most analysts, India will have to deal with hiking oil rates and inflation numbers at the same time in order to keep the market steady. Alroy Lobo, chief strategist and global head of equity asset management at Kotak AMC feels that higher oil prices will weigh on market sentiments and will remain as a key concern till oil prices come off. In addition to that, global events have been priced into the market and as a result, the revenue estimates will be shaved.

Talking about sector specific growth prospects, he said that he is constructive on the IT and outsourcing service sector. “IT and outsourcing services should show continuous growth in FY12,” he adds. He was also optimistic about the growth of pharmaceutical sector in India.

Besides being neutral on banking sector, he is underweight on infrastructure, real estate and capital goods sector in India. He feels that inflows were weak due to lack of retail participation; however, he sees a fair degree of valuations in the midcap segment.

Reacting on the RBI’s interest policy update, he said, “RBI is likely to hike interest rates to 50 to 75 basis points this year.”

www.moneycontrol.com