Sensex, Nifty hold morning gains; Dredging Corp surges 16%

Moneycontrol News12:51 pm SEBI unhappy: The Securities and Exchange Board of India (SEBI) is reportedly not happy with the central bank’s intervention in the HDFC Bank's February 17 trading case where foreign funds ended up trading in the stock even after the limit was breached. According to a report in the Economic Times, the market regulator has penned a letter to the Reserve Bank stating that the latter’s intervention without consulting with SEBI was not correct. 12:42 pm Limited Downside:  Fund flows are currently dictating the direction of the market, Pramod Gubbi, Head of Equities at Ambit Capital told CNBC-TV18 in an interview Monday. With no immediate reason for reversal of the ‘sticky’ domestic flows, the downside seems limited, he added. However, he said he would prefer to ‘buy on dips’ as the market is expensive. On the impact of the UP elections' results on the market, he said an untoward outcome could hit sentiment for a couple of days but the buoyant fund flows will limit decline. 12:20 pm Expert speak: In an interview, the CNBC-TV18 Consulting Editor and veteran market commentator said participation from domestic investors had been waning off recently and they probably want the UP election out of the picture. "If the BJP were to win or show signs of making it past the poll day after tomorrow, I think that could be an event which takes the market beyond 9,000 or even 9,100," he said. "On the other hand if that event does not deliver for the market, after this phase of consolidation, the market could easily breakdown in the near term and dart towards 8,600-8,500 kind of levels," he added. Apart from the election, the US Federal Reserve meet would be a crucial event in the coming days, he said. Also Read: Buy, sell, hold: 6 stocks analyst are watching outEquity benchmarks continued to hold morning gains, with the Nifty hovering around 8950 level. Reliance contributed 21 points to the Nifty’s gains, thereby holding the market with its rally. The Sensex was up 169.04 points at 29001.49, while the Nifty was up 50.00 points at 8947.55. The market breadth was narrow after 1,430 shares advanced, 1,131 shares declined, while 156 shares remained unchanged.Reliance, Power Grid and NTPC were the top gainers on the index, while pharma stocks, Grasim and Tech Mahindra were the top losers on the index. Reliance Industries touched a fresh nine-year high of Rs 1,307.05, up 3.86 percent intraday Monday as investors remained bullish on its telecom as well as energy prospects. Analysts expect contribution from telecom and energy businesses to boost revenue growth in coming years.L&T Technology Services gained over 2 percent intraday possibly on CLSA initiating coverage on the stock with a buy call. The brokerage house cited good client base as well as diversification of verticals, among others, as the reasons for the move. Shares of Dredging Corporation zoomed over 16 percent on the back of possible stake sale reports. According to a media report, the government was looking to give up controlling stake of 51 percent and a Cabinet note on the proposal has been prepared. Oil prices fell in Asian trade on Monday, wiping out some of the gains of the previous session amid worries lower growth targets in China could cut oil demand and ongoing concern over Russia's compliance with a global deal to cut oil output. However, worries over escalating violence in the Middle East put a floor under prices. Brent crude futures dropped 20 cents, or 0.4 percent, to USD 55.70 a barrel as of 0459 GMT after settling 1.5 percent higher in the previous session. US West Texas Intermediate (WTI) crude futures fell 23 cents, or 0.4 percent, to USD 53.10 a barrel after closing the previous session up 1.4 percent.[With inputs from Reuters](Disclosure: Reliance Industries owns Network 18 that publishes Moneycontrol.com.)