 "Nifty consolidates around 7,710; capital goods shares outperform")
Benchmark indices have consolidated in morning trades but are still trading in the negative zone. However, the downside is capped by gains in capital goods shares.
At 10:30 am, the S&P BSE Sensex was at 25,290, down by 51 points while the Nifty50 was at 7,717, down by 20 points.
Eight core sector industries surged to a 15-month high of 5.7 per cent in February 2016, almost double the 2.9 per cent of January 2016. These industries had expanded by 2.3 per cent in February 2015. Official data issued on Thursday showed only one segment, steel, had a fall in February output against three — crude oil, natural gas and steel — in January
The biggest losers on the Sensex are Lupin, M&M, Tata Steel, GAIL, and Bharti Airtel, down between 1.3%-3% each.
Shares of Bharat Wire Ropes made a sluggish debut on the stock exchanges today trading at Rs 46 compared to its issue price of Rs 45 per equity share.
Shares of Jaypee Group companies such as Jaiprakash (JP) Associates, Jaypee Infratech and Jaiprakash Power Ventures have rallied by up to 16% in an otherwise rangebound market after UltraTech Cement has signed the definitive agreement to buy JP Associates' 21.2 million tonnes per annum (mtpa) cement capacity for Rs 15,900 crore.
Geometric has dipped 4% to Rs 197, falling nearly 6% from its intra-day high on the BSE, ahead of board meeting today to discuss various strategic and restructuring options. The stock hit a record high of Rs 209 on the BSE in early morning trade.
---------------------------
(updated 9:30 am)
Markets opened the first day of FY17 on a weak note mirroring weakness in global peers amid sluggish cues from Wall Street.
At 9:30 am, the S&P BSE Sensex was at 25,302, down by 40 points while the Nifty50 was at 7,722, down by 16 points.
The broader markets, however, are outperforming their larger peers with BSE Midcap and Smallcap indices up over between 0.1%- 0.3% each.
"The Nifty is struggling to hold above 7720-7750 zones from last seven trading sessions and now it needs to hold the same to continue its positive momentum towards 7800 then 7850 zones, while on the downside immediate support exists at around 7660 then 7580 zones," Anand Rathi Securities said in a note
Technical commentary by Geojit BNP Paribas said, “While below 7780 region, early bias could be expected to be bearish, but major falls are less likely unless 7680 is taken out. Alternatively, direct push above 7780 could clear path for 7800/7832 and 8000-8300 in the near term. However, directional moves are less likely even on break past the 7680-7780 region, and the potential lacklustre moves need to be factored in.”
The currency market is shut today for accounts closing.
GLOBAL MARKETS
Asian markets were trading lower with Japanese shares declining the most after weak PMI data for March while China's manufacturing data indicated expansion in March for the first time in nine months. Japan manufacturing PMI eased to 49.1 in March. Japan's benchmark Nikkei was down 2.9% while China's Shanghai Composite eased 0.4%. Among others in the region, Straits Times and Hang Seng were down 0.8% each.
US stocks ended lower on profit taking after gains in the previous session and caution ahead of non-farm payrolls data on Friday. Meanwhile, jobless claims in the US registered a rise as per the data released on Thursday. The Dow Jones industrial average ended down 0.2% at 17,685, the S&P 500 eased 0.2% at 2,060 while the tech-laden Nasdaq ended flat at 4,870.
KEY STOCKS
The biggest losers on the Sensex are ICICI Bank, Tata Steel, M&M, Bharti Airtel, GAIL (India), all dropping between 1%-2% each.
Auto shares will start announcing their March sales numbers from today. Further, diesel car makers such as Tata Motors and M & M may see some pressure after the court extended the ban on registration of diesel vehicles with engine capacity of 2000cc and more in the National Capital Region till further orders.
Tata Motors and M&M have slipped over 1%. Among other peers, Hero Motocorp, Maruti Suzuki, Bajaj Auto have slipped between 0.1%- 1% each.
HDFC Bank is set to raise up to Rs 5,000 crore by way of infrastructure bonds. Rating agency CRISIL has assigned AAA/Stable rating to the bond issuance. However, the stock is mildly negative.
Domestic gas prices will stand reduced by 20 per cent to $3.06 per mBtu (million British thermal units) for April-September, as determined by the administered pricing formula that tracks a basket of international oil and gas prices.
The biggest impact will be borne by ONGC and Oil India, which supply about 75 per cent of the domestic gas. ONGC has slipped nearly 1% while Oil India has gained 0.4%.
India's fourth largest IT services company, HCL Technologies, has agreed to acquire Mumbai-headquartered engineering solutions company Geometric in a share swap deal that values it at $150-200 million. HCL Tech has gained 0.6% while Geometric has slumped over 2%.
JSW Steel may see some weakness after rating agency CARE revised its long term rating for the bank facilities and non-convertible debentures of the company downward by one notch from "CARE AA" to "CARE AA-". The stock has slipped 1.1%.
KEC International may firm up after the company said it has won orders worth Rs 836 crore in its Transmission & Distribution and Cable businesses. The stock has gained over 2%.
UltraTech Cement, a part of the Aditya Birla group, agreed to buy Jaiprakash Associates' 21.2 million tonnes per annum (mtpa) cement capacity for Rs 15,900 crore on Thursday. Ultratech has gained nearly 1% while Jaiprakash Associates has advanced over 2.5%.
At 10:30 am, the S&P BSE Sensex was at 25,290, down by 51 points while the Nifty50 was at 7,717, down by 20 points.
Eight core sector industries surged to a 15-month high of 5.7 per cent in February 2016, almost double the 2.9 per cent of January 2016. These industries had expanded by 2.3 per cent in February 2015. Official data issued on Thursday showed only one segment, steel, had a fall in February output against three — crude oil, natural gas and steel — in January
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The top gainers on the Sensex are BHEL, LT, ITC, Cipla and Wipro, up between 1%-5.5% each.
The biggest losers on the Sensex are Lupin, M&M, Tata Steel, GAIL, and Bharti Airtel, down between 1.3%-3% each.
Shares of Bharat Wire Ropes made a sluggish debut on the stock exchanges today trading at Rs 46 compared to its issue price of Rs 45 per equity share.
Shares of Jaypee Group companies such as Jaiprakash (JP) Associates, Jaypee Infratech and Jaiprakash Power Ventures have rallied by up to 16% in an otherwise rangebound market after UltraTech Cement has signed the definitive agreement to buy JP Associates' 21.2 million tonnes per annum (mtpa) cement capacity for Rs 15,900 crore.
Geometric has dipped 4% to Rs 197, falling nearly 6% from its intra-day high on the BSE, ahead of board meeting today to discuss various strategic and restructuring options. The stock hit a record high of Rs 209 on the BSE in early morning trade.
---------------------------
(updated 9:30 am)
Markets opened the first day of FY17 on a weak note mirroring weakness in global peers amid sluggish cues from Wall Street.
At 9:30 am, the S&P BSE Sensex was at 25,302, down by 40 points while the Nifty50 was at 7,722, down by 16 points.
The broader markets, however, are outperforming their larger peers with BSE Midcap and Smallcap indices up over between 0.1%- 0.3% each.
"The Nifty is struggling to hold above 7720-7750 zones from last seven trading sessions and now it needs to hold the same to continue its positive momentum towards 7800 then 7850 zones, while on the downside immediate support exists at around 7660 then 7580 zones," Anand Rathi Securities said in a note
Technical commentary by Geojit BNP Paribas said, “While below 7780 region, early bias could be expected to be bearish, but major falls are less likely unless 7680 is taken out. Alternatively, direct push above 7780 could clear path for 7800/7832 and 8000-8300 in the near term. However, directional moves are less likely even on break past the 7680-7780 region, and the potential lacklustre moves need to be factored in.”
The currency market is shut today for accounts closing.
GLOBAL MARKETS
Asian markets were trading lower with Japanese shares declining the most after weak PMI data for March while China's manufacturing data indicated expansion in March for the first time in nine months. Japan manufacturing PMI eased to 49.1 in March. Japan's benchmark Nikkei was down 2.9% while China's Shanghai Composite eased 0.4%. Among others in the region, Straits Times and Hang Seng were down 0.8% each.
US stocks ended lower on profit taking after gains in the previous session and caution ahead of non-farm payrolls data on Friday. Meanwhile, jobless claims in the US registered a rise as per the data released on Thursday. The Dow Jones industrial average ended down 0.2% at 17,685, the S&P 500 eased 0.2% at 2,060 while the tech-laden Nasdaq ended flat at 4,870.
KEY STOCKS
The biggest losers on the Sensex are ICICI Bank, Tata Steel, M&M, Bharti Airtel, GAIL (India), all dropping between 1%-2% each.
Auto shares will start announcing their March sales numbers from today. Further, diesel car makers such as Tata Motors and M & M may see some pressure after the court extended the ban on registration of diesel vehicles with engine capacity of 2000cc and more in the National Capital Region till further orders.
Tata Motors and M&M have slipped over 1%. Among other peers, Hero Motocorp, Maruti Suzuki, Bajaj Auto have slipped between 0.1%- 1% each.
HDFC Bank is set to raise up to Rs 5,000 crore by way of infrastructure bonds. Rating agency CRISIL has assigned AAA/Stable rating to the bond issuance. However, the stock is mildly negative.
Domestic gas prices will stand reduced by 20 per cent to $3.06 per mBtu (million British thermal units) for April-September, as determined by the administered pricing formula that tracks a basket of international oil and gas prices.
The biggest impact will be borne by ONGC and Oil India, which supply about 75 per cent of the domestic gas. ONGC has slipped nearly 1% while Oil India has gained 0.4%.
India's fourth largest IT services company, HCL Technologies, has agreed to acquire Mumbai-headquartered engineering solutions company Geometric in a share swap deal that values it at $150-200 million. HCL Tech has gained 0.6% while Geometric has slumped over 2%.
JSW Steel may see some weakness after rating agency CARE revised its long term rating for the bank facilities and non-convertible debentures of the company downward by one notch from "CARE AA" to "CARE AA-". The stock has slipped 1.1%.
KEC International may firm up after the company said it has won orders worth Rs 836 crore in its Transmission & Distribution and Cable businesses. The stock has gained over 2%.
UltraTech Cement, a part of the Aditya Birla group, agreed to buy Jaiprakash Associates' 21.2 million tonnes per annum (mtpa) cement capacity for Rs 15,900 crore on Thursday. Ultratech has gained nearly 1% while Jaiprakash Associates has advanced over 2.5%.