Markets erase early gains, IT shares dip

Markets have erased some of its gains in the noon trades after technology shares slipped into red on profit taking.

 

At 12.10, the Sensex is trading at 25,303 levels up by 74 points and Nifty is trading at 7,549 levels up by 23 points

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(updated at 12.15 PM)
The markets continue to trade firm on sustained buying by investors amid positive global and domestic cues. At 10.10 Am, the Sensex is trading at 25,308 levels up by 80 points and Nifty is trading at 7,548 levels up by 21 points. 

 

The market breadth is positive on the BSE with 1,242 shares advancing and 559 shares declining.

 

Meanwhile, Overseas investors sold Indian shares worth 34 million rupees on Tuesday, provisional exchange data shows

 

Sectors and Stocks:

Barring BSE Power and Consumer Durables indices, all other indices are trading in the positive territory. BSE Realty Index, a gauge for real estate companies, is the largest gainer among sectoral indices, is up 1.5%. 

Shares of real estate and infrastructure companies are trading higher by up to 6% after the Reserve Bank of India (RBI) said banks would not have to maintain cash reserve ratio (CRR) or statutory liquidity ratio (SLR) and will not have to meet priority-sector lending targets for funds raised through bonds for extending credit to these sectors.
 

Among the individual stocks Jaypee Infratech has rallied 7% to Rs 30.85, while IVRCL gained 5% to Rs 24.60 and Puravankara Projects by 4% to Rs 120 on BSE.

 

DLF, Prestige Estates, Mahindra Lifespace Developers, Oberoi Realty, Godrej Properties, Anant Raj Industries and Sobha Developers are up 2% each.

 

Sun Pharmaceutical Industries is up 1% after the company announced acquisition of Pharmalucence Inc., by one of its subsidiaries.

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(updated at 10.12 AM)
The markets have opened on a firm note tracking firm global cues. In addition, easier norms on bond sales for infrastructure and affordable housing notified by the RBI boosted the sentiments of the market participants.

 

The Sensex is trading at 25,350 levels up by 121 points and Nifty is trading at 7,563 levels up by 36 points.
 

Following the momentum, broader markets are trading in line with the large counter parts. BSE Midcap and Smallcap are up by 0.7%

 

Asian Markets:

Asian stocks held stubbornly steady on Wednesday after China reported economic growth that was just ahead of market expectations, enough to prompt a sigh of relief from investors, but little else.

 

China's economy expanded by 2.0 percent in the second quarter from the previous quarter, taking annual growth to 7.5 percent. Retail sales and industrial output were either in line with forecasts or slightly higher. In addition, SGX Nifty is quoting at 7,565.50 levels up by 0.3%

 

The data confirmed the Asian giant had stabilised after a shaky start to the year but still left the global outlook cloudy, particularly given recent weakness in the euro zone.

 

RBI Norms:

To boost demand for infrastructure and housing, the Reserve Bank of India (RBI) on Tuesday said banks would not have to maintain cash reserve ratio (CRR) or statutory liquidity ratio (SLR) and will not have to meet priority-sector lending targetsfor funds raised through bonds for extending credit to these sectors.

 

Sectors :

On sectoral front, all sectoral indices have opened in green.  BSE Realty is leading the rally followed by Bankex, Capital goods and metal indices.

Stocks:

 

Barring HDFC twins, Banking sector is witnessing fresh buying in the early trades post the RBI announced that banks will receive bonds boost to raise funds for core sector; up to Rs 50 lakh of home loans in metros and Rs 40 lakh in other cities not to have CRR, SLR requirements. SBI, ICICI Bank and Axis Bank are up between 1.5-2%

 

Metal pack is witnessing value buying on the back of encouraging economic data from China. China's economy expanded by 2.0 percent in the second quarter from the previous quarter, taking annual growth to 7.5 percent. Hindalco, Coal India and Tata Steel are up between 0.3-0.7%

 

Oil and Gas majors, ONGC and RIL are up 0.5%. However, GAIL is down 0.7%

 

Auto shares are trading in the positive territory. M&M, Hero Motocorp, Tata motors and Maruti Suzuki have gained between 0.3-1.4%

 

The technology shares are trading in green. TCS, Wipro and Infosys are up between 0.2-0.6%

 

Among other notable gainers are Sun Pharma, L&T and HUL

 

 On the flip side,

 

Bharti Airtel, Sesa Sterlite, HDFC twins have lost between 0.2-3%