Broader markets outshine; India Cements, IL&FS Engg zoom

Markets are swinging between the positive and negative territory as investors remain wary ahead of the CPI, IIP numbers due later during the day.

However, the broader markets are outperforming the benchmark indices as investors turn their interest towards mid-cap and small-cap stocks that are available at attractive valuations. 

By 10.50AM, the Sensex is lower by 23 points at 28,511 whereas the Nifty has gained by 9 points to trade at 8,636 levels.

In the broader markets, BSE Midcap index is up 0.8% at 10,627.06 levels and BSE Smallcap index has gained  0.9% at 11,162.4 level.

Among macro economic data, the government will release index of industrial production (IIP) data for December 2014 and the annual rate of inflation based on the combined consumer price indices (CPI) for urban and rural India in January 2015 today later during the day.

Also, corporate earnings to be posted by some of the blue-chip companies including BHEL, Cipla, Coal India and Hindalco are likely to dictate the trend on the bourses during the session.

Meanwhile, foreign portfolio investors sold shares worth a net Rs 371.27 crore yesterday, as per provisional data. Domestic institutional investors (DIIs) bought shares worth a net Rs 147.49 crore yesterday, as per provisional data released by the stock exchanges.

BUZZING STOCKS:

India Cements' stock climbed over 12% in morning trade today after the company's board approved the transfer of its IPL team CSK to a wholly-owned subsidiary Chennai Super Kings Cricket Ltd.

IL&FS Engineering has hit the upper circuit filter of 20% in morning deals, a day after the company reported a turnaround performance for the recently concluded quarter. Net profit in the December quarter came in at Rs 76.5 crore as against a loss of around Rs 58 crore in the previous corresponding period.

Pipavav Defence & Offshore Engineering has rallied over 12% on the Bombay Stock Exchange (BSE) to Rs 72 levels on reports that Anand Mahindra-controlled Mahindra & Mahindra (M&M) company is planning to buy 25 – 30% stake in the company.

Shares of Aditya Birla Chemicals have surged 4% to Rs 233 on the BSE after the board of Grasim Industries approved the proposed merger of Aditya Birla Chemicals India (ABCIL) with itself and approved the swap ratio at 1 share of Grasim for every 16 shares of ABCIL.

Construction company NCC has zoomed over 7.5% at Rs 81.50 on the NSE after reporting over five-fold increase in consolidated net profit at Rs 25.57 crore for the quarter ended December, 2014 on the back of higher revenue growth as against Rs 4.76 crore in the same period last year.

Among other notable Midcap gainers include BF Utilities, HMT, Pidilite, Firstsource solution, Honeywell Automachine India and Prism cement up between 5-12%.

The overall breadth of the BSE midcap remains positive as 205 stocks are advancing while 69 are declining.