Markets erase losses; Tata Steel up 1%

Markets have erased some of its early loses and are trading marginally in red during the late morning trades.  Fresh buying in index heavyweight ICICI bank and select auto shares including M&M and Hero Motocorp have capped losses.

 

At 11.30 AM, the Sensex is down 22 points at 25,539 and Nifty is down 9 points at 7,632.
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(updated at 11.35 AM)

The markets continue to trade in the negative territory owing to weakness in financials and power shares. Geopolitical tensions weigh on the market sentiments.At 9.45 Am, the Sensex is down 89 points at 25,473 and Nifty is down 35 points at 7,605 levels

 

The broader markets, BSE Midcap and Smallcap indices have dipped 0.6% each

 

Global markets
 

Asian shares sagged in early trading and a drop in Treasury yields pressured the dollar after news of a downed Malaysian airlines jet at the Ukraine-Russia border sent investors scurrying into defensive assets.

 

MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.4 percent. Japan's Nikkeistock average dropped 1.3 percent.

 

Wall Street had its worst day since April after news that nearly 300 people died in the crash, which a Ukrainian official said was caused by a missile fired at the plane.

 

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The Reserve Bank of India (RBI) on Thursday paved the way for niche banking by issuing draft guidelines for setting up payment banks and small banks. While payment banks will offer remittance services, small banks will offer low-ticket loans and basic banking services within a limited area of operation.

 

Sectors & Stocks

 

On sectoral front, BSE Realty is the biggest losing index down 1% followed by Power, Capital goods, Metal, Auto and Oil and Gas indices. Bankex has lost 0.6%. On the other hand, BSE IT and Teck indices are trading in the positive territory, up over 1%. BSE FMCG and Consumer durables are trading flat.

 

Capital goods which firmed up yesterday are trading in the red on profit taking. BHEL and L&T are down between 0.8-1.6%

 

 Bajaj Auto is trading in the red after reporting weak quarter results, down 1.6%. Tata Motors, M&M, Hero Motocorp and Maruti Suzuki have contributed to the decline.

 

The metal shares which gained on the back of positive Chinese GDP data in the previous session are witnessing heavy selling. Hindalco, Coal India, Sesa Sterlite and Tata Steel are down between 0.6-1%

 

Oil and Gas majors ONGC and RIL are down 1% and 0.2% each 

 

State-owned petroleum explorer Oil and Natural Gas Corporation (ONGC) has cautioned the government the proposed five per cent stake sale in the company might not generate investor interest unless key issues are resolved to enhance valuations.

 

The financial space is witnessing heavy selling. SBI, ICICI Bank, Axis Bank and HDFC Bank have lost between 0.2-1%

 

On the flip side, the Technology pack is witnessing fresh buying on the back of strong results posted by IT major TCS. TCS, Wipro and Infosys are up between 1-4%

 

The pharmaceutical sector is trading in the green territory. Cipla, Sun Pharma and Dr Reddy’ s lab have gained between 0.02-1.2%

 

Other notable gainers are ITC, HDFC and Bharti Airtel

 

The market breadth is weak on the BSE with 1,023 declines and 559 advances