Markets decline ahead of the F&O expiry

Benchmark indices extended losses in the noon trades on heavy sell-off amid weak Asian cues with Shanghai Composte dropping over 3%. Also, investors have turned cautious ahead of the F&O expiry scheduled tomorrow.

At 13.43 hrs, the Sensex is down 170 points at 27,533 and the Nifty is down 51 points to trade at 8,273.

Sesa Strelite, Tata Steel, Tata Power, Hindalco and Coal India are the top 5 losers on the BSE and are down between 1.4-3.5%.

_____________________________________________

(updated at 12.34)
Benchmark indices have come under pressure after paring early gains as losses in the shares of ICICI Bank and oil and gas stocks have capped the gains at higher levels.

At 12:34 hrs, the Sensex is down 115 points at 27,586 and the Nifty is down 40points to trade at 8,284

*********************************************.
(updated at 11:35 hrs)

Markets are trading higher for the fourth consecutive trading session tracking firm global cues ahead of the F&O expiry due tomorrow. Gain in financials is contributing the most to the rise on the 30-share Sensex.

At 11.35 hrs, the Sensex is up 104 points at 27,805 and the Nifty has gained 25 points to trade at 8,349.

Investors will be also watching the progress of the winter session of Parliament that ends on 23 December.

In the broader markets, the mid and smallcap indices are up 0.4% each.

Global Markets:

Asian stocks were trading mixed. Shanghai Composite lost more than 1% while Hang Seng was trading flat. Japanese markets were closed on account of a holiday.

Overnight US markets ended higher for fourth straight session boosted by strong gains in technology shares which helped offset losses in energy stocks. Sentiments were boosted on speculations that the European Central Bank is set to start buying euro government bonds and news of political stability in Greece. Dow Jones Industrial Average gaining 0.9% and S&P 500 index gaining 0.3% ended at record-closing highs while Nasdaq Composite gained 0.3%.

Rupee Outlook:

The rupee depreciated by four paise to 63.29 against the US dollar in early trade at the Interbank Foreign Exchange market today on fresh demand for the American currency from banks and importers.

Key Stocks:

On the sectoral front, BSE Bankex is the top gainer up 0.8% followed by BSE Auto, FMCG and Capital Goods indices up 0.5% each. However, BSE Metal and Realty indices are losing sheen and are down between 0.2-1%.

Banking shares back into focus with the National Stock Exchange (NSE) Bank Nifty hits a fresh record high during intra-day trade today. State Bank of India (SBI), Bank of Baroda, Federal Bank, Punjab National Bank, Axis Bank and Bank of India are up between 0.5-2%, while IndusInd Bank, Yes Bank, Canara Bank and ICICI Bank up 1% each.

The Reserve Bank of India (RBI) tightened the screws on bank customers who default on loans despite having the ability to repay their debts, creating a new category of borrowers classified as “non-cooperative” and asking banks to set aside higher provisions for incremental lending to such companies and their founders.

HDFC is up 1% after the mortage lender launched a fixed interest rate home loan product for a limited period as part of New Year celebrations to attract customers.

Bharti Airtel is trading into the green zone on media reports that Chinese telecom gear maker Huawei Technologies secured a three-year contract from Bharti Airtel for supply of base stations and other equipment for its 4G networks in Karnataka and Tamil Nadu Telecom circles. The stock is up 2%.

The auto stocks are trading firm with Bajaj Auto, M&M, Hero Motocorp and Maruti Suzuki up between 1-2%.

Engineering Conglomerate L&T is up 0.6%. Analysts believe the correction is an opportunity to accumulate the stock, as the impact of weak oil prices will be negligible and the company’s prospects remain healthy.

HCL Technologies Ltd fell 0.6% to Rs.1,577.50. The company said in a notice to BSE that the strengthening of dollar against various currencies to have adverse impact of about 210 bps on its December quarter dollar revenue

Metal share are trading under pressure in today’s trade. Hindalco, Sesa Sterlite, Coal India and Tata Steel are down between 0.5-1.5%.

Oil majors RIL and ONGC have lost nearly 0.6% each. Oil prices nudged higher in Asia today on hopes of improved US economic data, but analysts said gains would be capped with dealers squaring off positions for the end of the year.

The market breadth is positive on the BSE. 1,248 stocks advanced while 1,090 stocks declined.