Markets remain under pressure; Nifty hovers at 8,650

The IT sector is weak in wake of the TCS numbers, while the metal shares buck the negative trend.

The benchmark indices have retreated for the third consecutive day, dragged mainly by information technology stocks after Tata Consultancy Services (TCS), the country's leading software exporter, reported decline in Q4 consolidated net profit.

At 11:30am, the Sensex is at 28,604, lower by 61 points or 0.2%. The Nifty is underperforming the Sensex, down 44 points or 0.4% at at 8,661 due to the weakness in non-Sensex components. In tandem with the  benchmark indices, the BSE Mid-Cap index and BSE Small-Cap index have shed about 0.3% each at 10,929 and 11,767 respectively.


SECTORS & STOCKS

The metal sector is shining bright in mid-day trades. JSW Steel has soared by 3.7% at Rs 975 and Tata Steel has jumped by 2% at Rs 344. Sesa Sterlite and Hindalco have strengthened by around 2% each at Rs 208 and Rs 139 respectively. Hindalco Industries gained over 1% after India's largest investor Life Insurance Corp (LIC) has increased stake in the company.

The oil index continues to be in the limelight; Index heavyweight RIL has gained 1.3% at Rs 940 ahead of its quarterly results scheduled later during the day. Analysts expect the company to post a record fourth quarter net profit benefitting from refining margins, which will be partially offset by lower petrochemical margins. Oil India has gained 2.3% at Rs 520, while ONGC, HPCL and BPCL have gained between hald a percent and 1% each.

Rollatainers has jumped 9% to Rs 447 after the company said it's board has approved sub-division of equity shares of face value Rs 10/- each into five shares of face value of Rs 2/- each.

The IT sector is the top sectoral loser on the BSE, shedding 1.7% at 11,1194 in wake of TCS quarterly numbers. With TCS shedding in the region of about 4% at Rs 2,494, the negative sentiment surrounding the space has spread to other IT heavyweights as well. Wipro has lost 1.4% at Rs 592, Tech Mahindra has lost 2.3% at Rs 639 and Infosys has slipped by 0.3% at Rs 2182. In the broader IT space, Mindtree has slipped by 4.2% at Rs 1332 and CMC has lost 3.5% at Rs 1903.

Banking stocks are witnessing selling pressure in the morning trades. HDFC Bank, ICICI Bank and Axis Bank are down up to 2%  each after foreign portfolio investors pared their holdings in at least 21 banks in the March quarter (fourth quarter, or Q4) on concerns of deteriorating asset quality and the impact it would have on earnings of the lenders according to media reports.

Lupin has dipped 5% to Rs 1,810, extending its previous day’s nearly 3% fall on the National Stock Exchange (NSE), after Aurobindo Pharma got final approval from the US Food and Drug Administration (USFDA) to make and sell its generic version of oral suspension of antibiotic Cefixime.

The market breadth is marginally weak on the BSE, with 1,158 advances versus 1185 declines.