Markets choppy; Nifty sees strong support at 8,100

Markets have turned choppy after investors booked profits at higher levels. Although , the US Federal Reserve’s decision to keep US interest rates near zero for a "considerable time” and Chinese President Xi Jinping’s pledge to invest $20 billion in India in the next five years are likely to attract the market participants.

 

At 11:48 AM, the 30-share Sensex is down 21 points at 27,091 and the 50-share Nifty is up 1 point at 8,116.

 

In the broader market, the BSE Mid-cap and Small-cap indices are up between 0.1-0.4%.

 

Market breadth is marginally positive with 1,325 gainers and 1,322 losers on the BSE.

 

Meanwhile, overseas investors bought index futures worth $106.22 million on Thursday, as per NSE data. Foreign banks bought debt worth of 18.93 billion rupees ($311.7 million), as per CCIL data.

 

Rupee:

 

The rupee is trading at 60.7500/7550 vs Thursday's close of 60.83/84, driven by hopes of continued foreign fund buying in shares and bonds.

 

Asian Markets:

 

Asian shares firmed on the back of encouraging reports on the initial public offering by Chinese e-commerce major Alibaba Group. Shares in Japan were trading higher as the yen weakened against the US dollar. The benchmark Nikkei is up 1.6% at 16,335. The Shanghai Composite is trading flat with a positive bias and Hang Seng is trading 0.5% higher while Straits Times is up 0.3%.

 

Sectors & Stocks:

 

On the sectoral front, BSE IT index is the top gaining index up over 2% followed by Teck, Consumer durables, Oil and Gas and Power indices trading between 0.4-2%. However, FMCG and Capital Goods indices are losing sheen and have lost nearly 3%. Meanwhile, Bankex and Realty indices are trading flat with a negative bias.

 

Shares of Tata Group companies are trading higher by up to 4% on the BSE after global rating agency Moody's upgraded the ratings for many group firms including Tata Motors, Tata Steels and Tata Consultancy Services (TCS).

 

In the technology pack, IT major Infosys which lost sheen in the yesterday’s trade  has gained 1% after the companywidened collaboration with Microsoft and Hitachi Data Systems, in line with chief executive Vishal Sikka's vision to strengthen software offerings and expand global alliances.

 

India's third largest IT firm Wipro is trading over 1% higher and is continuing its rally of past few trading sessions after securing a contract from Saudi-based Saudi Electricity Company (SEC) for implementing and rolling out plant maintenance and project system functionality of SAP ERP application.

 

In the healthcare space, drug maker Sun Pharma has extended its rally and has climbed nearly 1% after the company entered into a licensing agreement with Merck & Co Inc for investigational therapeutic antibody candidate, Tildrakizumab to be used for treatment of plaque psoriasis, a skin ailment.

 

Cipla is up 1.5% after it signed an agreement with American company Salix Pharmaceuticals, under which Cipla has granted Salix exclusive rights over certain patent applications in the 'Rifaximin Complexes' patents owned by Cipla. The grant is on a worldwide basis, excluding the countries of Asia (other than Japan) and Africa. However Dr Reddy’s Lab is trading with marginal losses.

 

Metal shares which surged recently after China's economic stimulus raised hopes of a boost in demand in the world's biggest consumer of metals continue to trade higher in today’s trade. Coal India, Hindalco and Tata Steel are up between 0.5-1.5%. However, Sesa Sterlite is trading marginally in green.

 

Tata Power has advanced nearly 2% after global ratings agency Moody's Investors Service upgraded the company's corporate family rating to Ba3/Stable from B1/Negative, and senior unsecured rating to Ba3/Stable from B2/Negative, thus no longer notching for subordination. NTPC is up 0.5%.

 

Bajaj Auto, RIL and HDFC twins are some of the notable names in green among others.

 

On the flip side, Bharti Airtel is down 1.5%. The company has to spend Rs 436 crore for merging Airtel Broadband Services with itself towards differential spectrum cost and migration fee.

 

Engineering conglomerate L&T has dipped 1% in today’s trade. BHEL is down 1.4% despite winning an order worth over Rs 3,500 crore for setting up a thermal power project in Gujarat.

 

In the FMCG pack, ITC has dipped over 0.5% and HUL has lost 1.5%.

 

The Auto pack is trading lower today with M&M, Tata Motors and Hero Motocorp down nearly 1%.

 

GAIL, Axis Bank and SBI are some of the notable names in red among others.