 "Markets have a quiet morning; Nifty hovers at 8,400")
At 10.30am, the Sensex is at 27,753, higher by 77 points and the Nifty is hovering around the 8,400 mark at 8,392, up 15 points. The midcap and smallcap indices are also marginally in the green at 10,533 and 11,396 respectively.
The Sensex had shed 210 points and the Nifty had broken the 8400 mark in the previous session to make it five successive days of losses, on fears of weak corporate earnings during the March quarter, slow economic recovery and tax worries. This morning's modest gains could be attributed to short-covering on the part of market participants.
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Yes Bank is set to announce its Q4 numbers during the day.
"Technically, the Nifty faces a major hurdle at 8,540 and 8,600 levels. Supports exists at 8,350 and at 8,270. A break of 8,270 will drag the sentiment heavily. Investors should look for adding Technology stocks in the recent weakness," said Shrikant Chouhan, head of technical research, Kotak Securities in a note.
Adds Amar Ambani, head of reasearch at IIFL: The outlook is a flat start. Global cues are not really encouraging. The indices will look at minimizing any further damage unless the weather forecast takes a toll on the market. Yes Bank and Mastek results will be eyed. Attention will be on stocks like Sun Pharma again which shed over 9% on Tuesday after Daiichi sold its stake at a discount. While different interpretations are doing the round, Daiichi’s decision to exit Sun may be driven by its philosophy to not stay in a deal where it is a minority holder, says one. FY15 is turning out to be the worst year in last decade, in terms of PAT growth."
Meanwhile, the initial public offering (IPO) of MEP Infrastructure Developers Ltd (MEP Infra), a leading toll operator in the road infrastructure sector, starts today.
RUPEE
The Indian rupee has opened flat at 62.81 per dollar on Wednesday against previous day's closing value of 62.85 a dollar.
SECTORS AND STOCKS
Hindustan Unilever has jumped by 2.2% at Rs 893 to top the gainer's list on the BSE.
On the sectoral ftont, the capital goods, pharma and banking indices are the leading gainers on the BSE.
In the capital goods space, Bharat Electronics, BEML and Siemens have strengthened by about a percent each.
In the FMCG space, Hindustan Unilever has added 2.2% at Rs 893, while Dabur and United Spirits have added about a percent each,
In the pharma space, Sun Pharmaceutical has added 2% at Rs 971 after media reports suggested that the company's promoter Dilip Shanghvi has not purchased any additional shares in the company following the stake sale by Daiichi Sankyo. Cadilla healthcare, Apollo and Wockhardt have added around a percent each. Torrent Pharma, IPCA and Dr Reddy's have gained by around one percent each.
Fertilizer companies are in focus. Minister of State for Chemicals and Fertilizers Hansraj Gangaram Ahir told the Lok Sabha on Monday that a New Urea Policy (NUP) was under the consideration of the government. Tata Chemicals and Godaveri Fertilisers added aboout a percent each on the BSE.
Tyre stocks are under pressure due to a rise in global rubber prices. MRF, Ceat and JK Tyres have lost around a percent each on the BSE.
Among individual stocks, Cimmco is locked at the upper circuit of 10% at Rs 107 on the National Stock Exchange (NSE) in early trades after bagging an industrial license to manufacture defence items.
Wipro is subdued after the IT major reported disappointing earnings with just two per cent growth in net profit for the March quarter compared to the year-ago period. The March quarter performance was hit by currency volatility and softening of demand in the key energy sector. The IT major is quoting at Rs 553, lower by Rs 25 or 4%, on the BSE.
Natco Pharma is down 1.5% at Rs 2,117 on the Bombay Stock Exchange after generic drug maker Teva Pharmaceuticals made an $40 billion offer for rival Mylan, which is Natco Pharma's marketing partner for the generic version of Copaxone.