Markets opened lower on back of weak cues from the global markets and losses in IT shares after Wipro reported third quarter results. Sensex was down 45 points, at 19,000 and the Nifty dropped 7 points, at 5,703.
Volatility may continue on back of third quarter results. Reliance Industries earnings may determine the market movement in the coming days. Puneet Kinra – Senior Technical Analyst (Equity Research), Bonanza Portfolio said, "Nifty’s very short term trend has turned up. However, Result of Reliance Industries may have significant effect on market sentiments. Volatility is likely to continue till Nifty sustains well above 5850 level." Kinra added for daily Purpose, trend deciding level is 5710-5730. If Nifty shows strength above 5730 level, then rally to 5850 levels on the higher side may be seen." Reliance Industries surged 0.9% in the opening trades.
Wipro Ltd, India's third-largest software services exporter slipped 3.2% after it reported 10% rise in net profit to Rs 1319 cr versus Rs 1203 cr. The results met the estimates led by improving demand for offshoring services.
Asian markets were trading mostly lower as resource shares lost ground. Hong Kong's Heng Seng was trading flat at 24,002 dragged by losses in commodity shares as economic data from China continued to raise concerns that Beijing would tighten further. China's Shanghai Composite was up marginally higher by 0.6%, at 2,694. Japan's Nikkei Stock Average was off 0.9%, at 10,347, financials weighed.
IT shares were leading the losses, Wipro rivals HCL Technologies dipped 0.7%, Infosys was off 0.6% and TCS edged lower by 0.3%.
Oil & Gas shares were on the buzzer this morning ahead of the Reliance Industries results after market hours today. Besies RIL, Oil Marketing Companies HPCL and BPCL climbed 1% and 0.3% each. Gail India and Cairn India advanced 0.3% each.
Top gainers on the Sensex were Bajaj Auto, up 1.8%, BHEL, up 1.5% and Mahindra & Mahindra, up 1.2%. Prominent losers were Wipro, Bharti Airtel, down 1.7%, HDFC was off 1.3% and Infosys fell 1%.
Broader markets outperformed the Sensex, the midcap and smallcap indices surged 0.4% each.
Market breadth was negative 498 stocks declined for 1054 shares which advanced.