Nifty below 7,900; Sesa Sterlite, Tata Steel top losers

Markets have erased initial gains on profit taking weighed down by Index heavyweights Infosys and HDFC contibuting the most to the decline on the 30-share Sensex.

 

At 11.55 AM, the Sensex is up 39 points at 26,353 and the Nifty has gained 12 points to trade at 7,887.

 

Broader markets are outperforming the large counterparts both the mid and smallcap indices have surged by 0.6% and 0.7% each.

 

The market breadth is positive with 1,595 stocks advancing while 956 stocks declining on BSE.

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(updated at 11.55 AM)
Benchmark indices are trading firm in the positive territory led by gains in financials and consumer durables. However, steel shares continue to lose sheen on the 30-share index due to rate rise in iron ore and bauxite. 

 

At 11.35 AM, the Sensex is up 113 points at 26,428 and the Nifty has gained 36 points to trade at 7,911.

 

Broader markets are outperforming the large counterparts both the mid and smallcap indices have surged by 1% each.

 

The market breadth is positive with 1,684 stocks advancing while 825 stocks declining on BSE.

 

Asian Markets:

 

Asian shares were trading lower after a private survey showed weaker-than-expected Chinese manufacturing data. HSBC/Markit Flash China Manufacturing Purchasing Manager's Index slipped to 50.3 in August compared with 51.7 in July, against a forecast of 51.5.

 

Except for Nikkei all other indices were trading lower. Nikkei was up 0.8%, Hang Seng was down 0.8%, Shanghai Composite fell 0.3% and Straits Times was trading flat.

 

Local Currency:

 

The rupee is trading lower against the US dollar in early trades at Rs 60.72 tracking gains in the dollar. On Wednesday, The rupee rose to a near three-week high against the dollar on Wednesday on the back of strong foreign investor buying in the debt market, although greenback demand from importers and a fall in shares limited further gains. The currency ended at Rs 60.61.

 

Meanwhile, foreign portfolio investors (FPIs) bought shares worth a net Rs 251.36 crore on Wednesday, as per provisional data from the stock exchanges.

 

Sectors & Stocks:

 

On the sectoral front, barring BSE Metal, all other indices are trading in the positive territory. BSE Consumer durables index is leading the rally up over 3% led by titan after a foreign brokerage house upgraded the stock followed by Capital goods, Oil &Gas, Power and Realty indices. Bankex is up 0.4%. 

 

Fresh buying is visible in the financial segment. SBI, Axis Bank, ICICI Bank and HDFC Bank up between 0.8-2%. 

 

Banking shares mainly public sector undertakings (PSU) are in demand and trading higher by up to 5% on the National Stock Exchange on reports that the Finance ministry will take tough measures on rising scams in state-owned banks.

 

Union Bank of India, Canara Bank, Bank of India, Oriental Bank of Commerce, Indian Overseas Bank and Andhra Bank are up 3-5%, while State Bank of India, Punjab National Bank, Bank of Baroda, IDBI Bank and Allahabad Bank up 2% each on NSE.

 

Auto shares are present on the buyer’s radar during the morning trades. Bajaj Auto, M&M, Maruti Suzuki and Tata Motors gained between 0.5-2%.

 

Engineering conglomerate L&T is up 1% after winning orders worth Rs 18.32 billion.

 

Oil and Gas shares are trading firm in the morning trades. GAIL and ONGC are up 1% and 0.5%, each.

 

TCS, Coal India, Tata power and HUL are some of the prominent names in green among others.

 

On the flip side, Pharma stocks which surged yesterday have lost sheen during the morning trades. Dr Reddy’s lab and Sun Pharma have lost 1% and 0.4%, each.

 

Metal shares are trading down as iron ore and bauxite are expected to see a rate rise to 15 per cent against the earlier 10 per cent. Manganese ore would attract a royalty equivalent to five per cent from 4.2 per cent of the notified sales price. Tata Steel is down 1% and Sesa Sterlite has dropped nearly 1%.

 

Hero Motocorp, HDFC and Bharti Airtel are some of the notable names in red among others.

 

Among other shares, shares of Sterlite Technologies were locked in 5% upper circuit at Rs 60.35 on expectations that the integrated optical fibre company would be one of the key beneficiaries of the Digital India plan.

 

Claris Lifesciences is trading 4% higher at Rs 182 on BSE after the company announced that it has received the MHRA approval for its newly commissioned plant.