 "Nifty trades below 8,400; Bank Nifty drops around 200 points")
Markets continue to trade weak in the early morning session weighed by financial and capital goods stocks. The losses are, however, capped by the gains in Information Technology shares.
At 10:35 AM, the Sensex was at 27,814 levels, down by 81 points or 0.3% while the Nifty was at 8,379 levels, down by 19 points.
The top losers are GAIL, BHEL, Vedanta, HDFC and ICICI Bank, all shedding between 1.5-2.1% each on the Sensex. Infosys, TCS and M&M have surged between 0.9-1.9% each on the Sensex.
********************************************************
(Updated 9:45 AM)
Markets slid further on the first session of the July F&O series tracking the cues
from global markets as Greece and its international creditors yet again failed to sign a truce. The weakness on Dalal Street is led by financial stocks.
At 9:45 AM, the 30-share Sensex was at 27,760 levels, down by 118 points or 0.4% while the 50-share Nifty, which had closed just shy of 8,400 mark on Thursday, was at 8,370 levels, down by 28 points.
In the broader markets, the BSE Midcap and Smallcap indices are trading lower by 0.3% and 0.15%, respectively. The market breadth is negative, with 840 declines against 598 advances on the BSE.
On Thursday, the benchmark indices had wrapped up the trading session on a firm note following expiry of June derivative contracts. The rally was led by capital goods, financials and auto shares.
Meanwhile, foreign portfolio investors (FPIs) were net buyers to the tune of Rs 280.21 crore on Thursday as per provisional stock exchange data.
On the currency front, the rupee is quoting at 63.63 against its previous day's close of 63.62.
EXPERT VIEW
Analysts say Nifty futures have seen rollovers of 62.50%, which is lower to last series rollover of 68.10% in terms of percentage, but rolls are slightly better in terms of number of contracts.
"Immediate trend may remain strong till the Nifty holds above 8,335 levels and a sustainable move above 8,467-mark may extend its rally towards 8,550 and 8,635 zones. If it fails to hold 8,335 levels, then only a small profit booking decline may drag it to 8,200. However, the support base is shifting to upwards as per the option data of early July series," said Chandan Taparia, derivatives & technical analyst with Anand Rathi Research.
"Strong buying interest in many heavyweights stocks, better-than-expected monsoon, hope for rate cuts, expectation of better IIP and lower inflation are some of the reasons for keeping the cautiously positive sentiment on the market even after the negative flows from FIIs, concern over Greece and volatile swing in European market," he adds.
GLOBAL MARKETS
Asian equities largely declined on Friday as Greece failed again to reach an agreement with its creditors and stumbled towards a default, while major currencies like the euro and dollar drifted as the debt saga sidelined investors.
MSCI's broadest index of Asia-Pacific shares outside Japan slipped 0.2%.
Japan's Nikkei dipped 0.1%. Despite household spending rising more than expected, inflation has remained flat, keeping alive expectations for more central bank stimulus later this year.
SECTORS & STOCKS
Sectorally, BSE IT and Consumer Durable indices are leading the rally, up 0.6% in an otherwise weak market. BSE Bankex and Capital Goods indices are leading the downfall, nearly 0.7% down.
Financials are reeling under selling pressure after the Reserve Bank of India (RBI) raised concerns that while risks to India's banking sector have moderated marginally since September 2014, worries remain over the continued weakness in asset quality indicated by the rising trend in stressed advances ratio of scheduled commercial banks (SCBs), especially of public sector banks (PSBs).
ICICI Bank, State Bank of India, Axis Bank, and HDFC Bank are down 0.5- 1.2% each on the Sensex.
Shares of GAIL and BHEL are down 1.3- 1.5% each on the Sensex on account of profit-booking as these shares were among the top 5 gainers on the Sensex yesterday.
The Bharti group has acquired a strategic minority stake in OneWeb, a satellite internet company that seeks to provide affordable internet access in rural and remote areas across the world. The stock is down by 0.6% on the Sensex.
Index heavyweights such as Reliance Industries and HDFC are down by 0.6% and 1.06% respectively.
On the positive side, Infosys is the highest gainer with 1.2% gains on the Sensex while Wipro is up nearly 1%.
Other notable gainers are from pharma pack. Cipla, SunPharma, and Dr. Reddy’s are up 0.2- 07% each on the Sensex.
With Reuters input
At 10:35 AM, the Sensex was at 27,814 levels, down by 81 points or 0.3% while the Nifty was at 8,379 levels, down by 19 points.
The top losers are GAIL, BHEL, Vedanta, HDFC and ICICI Bank, all shedding between 1.5-2.1% each on the Sensex. Infosys, TCS and M&M have surged between 0.9-1.9% each on the Sensex.
More From This Section
********************************************************
(Updated 9:45 AM)
Markets slid further on the first session of the July F&O series tracking the cues
from global markets as Greece and its international creditors yet again failed to sign a truce. The weakness on Dalal Street is led by financial stocks.
At 9:45 AM, the 30-share Sensex was at 27,760 levels, down by 118 points or 0.4% while the 50-share Nifty, which had closed just shy of 8,400 mark on Thursday, was at 8,370 levels, down by 28 points.
In the broader markets, the BSE Midcap and Smallcap indices are trading lower by 0.3% and 0.15%, respectively. The market breadth is negative, with 840 declines against 598 advances on the BSE.
On Thursday, the benchmark indices had wrapped up the trading session on a firm note following expiry of June derivative contracts. The rally was led by capital goods, financials and auto shares.
Meanwhile, foreign portfolio investors (FPIs) were net buyers to the tune of Rs 280.21 crore on Thursday as per provisional stock exchange data.
On the currency front, the rupee is quoting at 63.63 against its previous day's close of 63.62.
EXPERT VIEW
Analysts say Nifty futures have seen rollovers of 62.50%, which is lower to last series rollover of 68.10% in terms of percentage, but rolls are slightly better in terms of number of contracts.
"Immediate trend may remain strong till the Nifty holds above 8,335 levels and a sustainable move above 8,467-mark may extend its rally towards 8,550 and 8,635 zones. If it fails to hold 8,335 levels, then only a small profit booking decline may drag it to 8,200. However, the support base is shifting to upwards as per the option data of early July series," said Chandan Taparia, derivatives & technical analyst with Anand Rathi Research.
"Strong buying interest in many heavyweights stocks, better-than-expected monsoon, hope for rate cuts, expectation of better IIP and lower inflation are some of the reasons for keeping the cautiously positive sentiment on the market even after the negative flows from FIIs, concern over Greece and volatile swing in European market," he adds.
GLOBAL MARKETS
Asian equities largely declined on Friday as Greece failed again to reach an agreement with its creditors and stumbled towards a default, while major currencies like the euro and dollar drifted as the debt saga sidelined investors.
MSCI's broadest index of Asia-Pacific shares outside Japan slipped 0.2%.
Japan's Nikkei dipped 0.1%. Despite household spending rising more than expected, inflation has remained flat, keeping alive expectations for more central bank stimulus later this year.
SECTORS & STOCKS
Sectorally, BSE IT and Consumer Durable indices are leading the rally, up 0.6% in an otherwise weak market. BSE Bankex and Capital Goods indices are leading the downfall, nearly 0.7% down.
Financials are reeling under selling pressure after the Reserve Bank of India (RBI) raised concerns that while risks to India's banking sector have moderated marginally since September 2014, worries remain over the continued weakness in asset quality indicated by the rising trend in stressed advances ratio of scheduled commercial banks (SCBs), especially of public sector banks (PSBs).
ICICI Bank, State Bank of India, Axis Bank, and HDFC Bank are down 0.5- 1.2% each on the Sensex.
Shares of GAIL and BHEL are down 1.3- 1.5% each on the Sensex on account of profit-booking as these shares were among the top 5 gainers on the Sensex yesterday.
The Bharti group has acquired a strategic minority stake in OneWeb, a satellite internet company that seeks to provide affordable internet access in rural and remote areas across the world. The stock is down by 0.6% on the Sensex.
Index heavyweights such as Reliance Industries and HDFC are down by 0.6% and 1.06% respectively.
On the positive side, Infosys is the highest gainer with 1.2% gains on the Sensex while Wipro is up nearly 1%.
Other notable gainers are from pharma pack. Cipla, SunPharma, and Dr. Reddy’s are up 0.2- 07% each on the Sensex.
With Reuters input