 "Markets remain weak; Broader markets outperform")
Benchmark Indices continue to reel under pressure dragged down mainly by information technology and metal shares. The negativity in the Asian peers has also weighed down on the local equities.
However, the downfall is arrested owing to capital goods shares that are rallying post better-than-expected August IIP numbers.
At 12:15 PM, BSE Sensex was at 26,834, down by 70 points while CNX Nifty opened at 8,124, down 20 points.
Market participants are on the edge ahead of the September quarter results of IT-major TCS, which is set to announce them later today.
The top losers on the Sensex are Vedanta, Hindalco, ONGC, Tata Steel, and Infosys, down between 2-4% each. The top 5 gainers on the Sensex are Bajaj Auto, Lupin, Gail (India), Wipro, and Coal India, up between 1-2% each.
-----------------------------------------------
(updated 9:35 AM)
Markets have extended losses and opened flat with a negative bias tracking weaker cues from the global markets.
At 9:35 AM, the S&P BSE Sensex was at 26,814, down by 75 points while CNX Nifty opened at 8,121, down 22 points.
The market players are expected to react to the better than expected factory output data for the month of August, which revealed that the industrial production grew by 6.4%. However, the higher inflation numbers can dampen the spirit on D-Street.
The broader markets are, however, outperforming their larger peers with BSE Midcap and Smallcap indices up between 0.2% and 0.3% respectively. The market breadth is positive with 916 advances while 463 declines.
Meanwhile, foreign portfolio investors (FPIs) bought shares worth a net Rs 317.56 crore yesterday, as per provisional data released by the stock exchanges.
MACRO-ECONOMIC DATA
Industrial Production grew by 6.4% for the month of August, an improvement over the 4.2% growth registered in the previous month of June, official data showed on Monday.
However, India's retail inflation based on the consumer price index (CPI) for September increased to 4.41%, from 3.74% recorded for the previous month, on the back of higher food prices, official data showed on Monday.
RESULTS CAPSULE
Among the companies announcing results today, TCS is the notable company, which is set to unveil its quarterly figures today. DCB Bank is the other company that will announce its Q2 data later today.
MARKET OUTLOOK
According to a note by Anandrathi, “Now, Nifty needs to cross and hold above 8200 levels to continue the positive move towards 8280 and 8330 zones. While if it fails to hold 8100 zones then short term trend zones. While if it fails to hold 8100 zones then short term trend may get in the grip of profit booking to drag the index towards 8000-7980 zones.”
Further on Sensex the note added, "Here on if it sustains above 27000 levels then buying interest may come back to see the index towards 27250 and 27500 levels while if it fails to hold 26750 levels then profit taking may take the index towards 26500".
GLOBAL MARKETS
Asian shares stepped back from two-month highs on profit-taking on Tuesday and oil prices regrouped after Monday's big fall, while the dollar was on the defensive as expectations of an imminent U.S. rate hike receded.
MSCI's broadest index of Asia-Pacific shares outside Japan slipped 0.2% in early trade from their two-month high touched on Monday, though it was still up 8.6% so far this month. Japan's Nikkei fell 0.6%.
Oil prices tumbled on Monday as traders took profits after last week's surge to an 11-week high, and on a report that OPEC continued to boost crude production despite a persistent glut.
Gains in utilities offset a retreat in energy shares on Monday, leaving U.S. stocks slightly higher as investors remained nervous about third-quarter corporate results.
The Dow rose for a seventh straight session, led by gains in UnitedHealth Group, which rose 2.7% at $122.51.
STOCK TRENDS
Sectorally, BSE Capital Goods index is up 0.8% while BSE Metal and IT indices are down 0.5- 0.8%. BSE Bankex is trading flat.
The August IIP numbers have added cheer to the capital goods shares. L&T, BHEL, Havells, Crompton Greaves have all surged between 1-2.1%
The CPI numbers for the month of September have edged up to 4.41% following which the banking and financial shares are trading mixed. SBI, Axis Bank and IndusInd Bank have gained 0.2-0.5% while HDFC Bank and ICICI Bank have edged lower between 0.2-0.6%
Ahead of the September quarter results, TCS is trading flat.
Infosys has extended its losses post its announcement of its Q2 numbers yesterday, which indicated weakness in the second half of the financial year, as it held on to its constant currency guidance. The stock has lost 1.73%.
The international consultant appointed to give its technical findings in a gas dispute between ONGC and Reliance Industries (RIL) submitted an interim report on Friday, stating around nine billion cubic metres (bcm) of natural gas may have flown out from ONGC’s block in the Krishna-Godavari basin to RIL’s adjoining reservoir. ONGC has slipped over 2% while Reliance Industries has lost 0.1%.
The Supreme Court on Monday asked the Central Bureau of Investigation to take a call if the entries in the diary recovered from Aditya Birla Group's Hindalco's office points to any offence and if so, then to proceed in the matter due to which Hindalco has dropped over 2.5% on the Sensex.
The metal pack is witnessing some profit booking after the surge yesterday. Vedanta, Tata Steel, JSWSteel have all lost between 0.8-2% each.
Among other shares, shares of Bank of Baroda have lost 0.6% after alleged illegal foreign exchange transactions at a Bank of Baroda (BoB) branch in New Delhi are likely to prompt the central bank to tighten anti-money laundering norms.
with Reuters input
However, the downfall is arrested owing to capital goods shares that are rallying post better-than-expected August IIP numbers.
At 12:15 PM, BSE Sensex was at 26,834, down by 70 points while CNX Nifty opened at 8,124, down 20 points.
Market participants are on the edge ahead of the September quarter results of IT-major TCS, which is set to announce them later today.
The top losers on the Sensex are Vedanta, Hindalco, ONGC, Tata Steel, and Infosys, down between 2-4% each. The top 5 gainers on the Sensex are Bajaj Auto, Lupin, Gail (India), Wipro, and Coal India, up between 1-2% each.
-----------------------------------------------
(updated 9:35 AM)
Markets have extended losses and opened flat with a negative bias tracking weaker cues from the global markets.
At 9:35 AM, the S&P BSE Sensex was at 26,814, down by 75 points while CNX Nifty opened at 8,121, down 22 points.
The market players are expected to react to the better than expected factory output data for the month of August, which revealed that the industrial production grew by 6.4%. However, the higher inflation numbers can dampen the spirit on D-Street.
The broader markets are, however, outperforming their larger peers with BSE Midcap and Smallcap indices up between 0.2% and 0.3% respectively. The market breadth is positive with 916 advances while 463 declines.
Meanwhile, foreign portfolio investors (FPIs) bought shares worth a net Rs 317.56 crore yesterday, as per provisional data released by the stock exchanges.
MACRO-ECONOMIC DATA
Industrial Production grew by 6.4% for the month of August, an improvement over the 4.2% growth registered in the previous month of June, official data showed on Monday.
However, India's retail inflation based on the consumer price index (CPI) for September increased to 4.41%, from 3.74% recorded for the previous month, on the back of higher food prices, official data showed on Monday.
RESULTS CAPSULE
Among the companies announcing results today, TCS is the notable company, which is set to unveil its quarterly figures today. DCB Bank is the other company that will announce its Q2 data later today.
MARKET OUTLOOK
According to a note by Anandrathi, “Now, Nifty needs to cross and hold above 8200 levels to continue the positive move towards 8280 and 8330 zones. While if it fails to hold 8100 zones then short term trend zones. While if it fails to hold 8100 zones then short term trend may get in the grip of profit booking to drag the index towards 8000-7980 zones.”
Further on Sensex the note added, "Here on if it sustains above 27000 levels then buying interest may come back to see the index towards 27250 and 27500 levels while if it fails to hold 26750 levels then profit taking may take the index towards 26500".
GLOBAL MARKETS
Asian shares stepped back from two-month highs on profit-taking on Tuesday and oil prices regrouped after Monday's big fall, while the dollar was on the defensive as expectations of an imminent U.S. rate hike receded.
MSCI's broadest index of Asia-Pacific shares outside Japan slipped 0.2% in early trade from their two-month high touched on Monday, though it was still up 8.6% so far this month. Japan's Nikkei fell 0.6%.
Oil prices tumbled on Monday as traders took profits after last week's surge to an 11-week high, and on a report that OPEC continued to boost crude production despite a persistent glut.
Gains in utilities offset a retreat in energy shares on Monday, leaving U.S. stocks slightly higher as investors remained nervous about third-quarter corporate results.
The Dow rose for a seventh straight session, led by gains in UnitedHealth Group, which rose 2.7% at $122.51.
STOCK TRENDS
Sectorally, BSE Capital Goods index is up 0.8% while BSE Metal and IT indices are down 0.5- 0.8%. BSE Bankex is trading flat.
The August IIP numbers have added cheer to the capital goods shares. L&T, BHEL, Havells, Crompton Greaves have all surged between 1-2.1%
The CPI numbers for the month of September have edged up to 4.41% following which the banking and financial shares are trading mixed. SBI, Axis Bank and IndusInd Bank have gained 0.2-0.5% while HDFC Bank and ICICI Bank have edged lower between 0.2-0.6%
Ahead of the September quarter results, TCS is trading flat.
Infosys has extended its losses post its announcement of its Q2 numbers yesterday, which indicated weakness in the second half of the financial year, as it held on to its constant currency guidance. The stock has lost 1.73%.
The international consultant appointed to give its technical findings in a gas dispute between ONGC and Reliance Industries (RIL) submitted an interim report on Friday, stating around nine billion cubic metres (bcm) of natural gas may have flown out from ONGC’s block in the Krishna-Godavari basin to RIL’s adjoining reservoir. ONGC has slipped over 2% while Reliance Industries has lost 0.1%.
The Supreme Court on Monday asked the Central Bureau of Investigation to take a call if the entries in the diary recovered from Aditya Birla Group's Hindalco's office points to any offence and if so, then to proceed in the matter due to which Hindalco has dropped over 2.5% on the Sensex.
The metal pack is witnessing some profit booking after the surge yesterday. Vedanta, Tata Steel, JSWSteel have all lost between 0.8-2% each.
Among other shares, shares of Bank of Baroda have lost 0.6% after alleged illegal foreign exchange transactions at a Bank of Baroda (BoB) branch in New Delhi are likely to prompt the central bank to tighten anti-money laundering norms.
with Reuters input