Markets trade volatile, Nifty hovers around 9,100; TCS recovers losses

S&P BSE Midcap index and S&P BSE Smallcap index outperformed to gains 0.2% and 0.3%, respectively

The benchmark indices on Wednesday scuttled between gains and losses amid negative global cues after British Prime Minister Theresa May's surprise decision to call a snap election on June 08. 

At 11:13 am, the S&P BSE Sensex was trading at 29,344, up 25 points, while the broader Nifty50 was ruling at 9,109, up 4 points. 

In the broader market, the S&P BSE Midcap index and the S&P BSE Smallcap index extended gains to rise 0.5% each.

"Traders should keep a close eye on 9,060, which is the 161% retracement of the small up move from 9,120.25 to 9,217.90. On the upside, 9,125-9,175 would be seen as immediate hurdles for the index. Traders are advised to stay light on positions and avoid taking fresh shorts until 9,020 remains unbroken," said brokerage Angel Broking in a research note.

Meanwhile, the rupee on Wednesday appreciated by 8 paise to 64.55 vs dollar. The currency closed at 64.63, down 0.18% on Tuesday. 

On Tuesday, foreign institutional investors sold equities worth Rs 930 crore, while domestic institutional investors bought equities worth Rs 878 crore, provisional data available with BSE showed. 

Buzzing stocks

Tata Consultancy Services (TCS), India’s largest software exporter, said both fourth quarter (Q4) profits and revenues grew 4.2% to Rs 6,608 crore and Rs 29,642 crore, on the back of improved digital business, but currency volatility impacted its margins in the three-month period. The stock was the top loser in the early trade but recovered to gain over 1% to Rs 2,348 as the session progressed. 

National Aluminium Company (Nalco) dipped 7% to Rs 68.30 on BSE in early morning trade after the government stake sale of up to 10% in the aluminium company through an offer for sale (OFS), which begins today.

Indiabulls Real Estate shed over 4% to Rs 121 after National Stock Exchange said it is looking into trading data of the company following reports of alleged manipulation in the stock price. 

Shares of the company have seen significant volatility in trading sessions in two days. The scrip plunged little over 10 per cent to close at Rs 133.25 on the NSE while it had a high of Rs 155.20 on Monday.  

IMD forecasts normal monsoon

Monsoon rains are expected to be average in 2017, the India Meteorological Department (IMD) predicted on Tuesday, giving rise to expectations of three to four per cent farm gross domestic product (GDP) growth, which would fuel rural demand and ease food inflation.

The monsoon is likely to be just normal at 96% of the Long Period Average (LPA) this year for the second year in a row, said IMD. CLICK HERE FOR EXPERT VIEWS

British PM calls for early election

British Prime Minister Theresa May called on Tuesday for an early election on June 8, saying she needed to strengthen her hand in divorce talks with the European Union by bolstering support for her Brexit plan.

Standing outside her Downing Street office, May said she had been reluctant to ask parliament to back her move to bring forward the poll from 2020. But, after thinking "long and hard" during a walking holiday, she decided it was necessary to try to stop the opposition "jeopardizing" her work on Brexit. 

Trump orders review of H-1B visa programme 

President Donald Trump on Tuesday ordered a review of the US visa programme for bringing high-skilled foreign workers into the country, putting technology firms and the outsourcing companies that serve them on notice that possible changes may be ahead.

Seeking to carry out a campaign pledge to put "America First," Trump signed an executive order on the H-1B visa programme. It was vague on many fronts, and did not change existing rules, but one objective, said Trump aides, is to modify or replace the current lottery for H-1B visas with a merit-based system that would restrict the visas to highly skilled workers. Indians are the largest group of H-1B recipients annually.

Global markets

Asian markets were largely sidelined with MSCI's broadest index of Asia-Pacific shares outside Japan off 0.1% to the lowest since mid-March. Japan's Nikkei eased 0.2%, in line with losses across the region. China's Shanghai Composite was down over 1%, while Hong Kong's Hang Seng shed 0.7%. 

Among Asian currencies, sterling stole the show. It surged to a more than six-month top against the dollar after announcement of snap election in UK. The pound was lording it at $1.2846 having shattered a months' old trading range with a jump of 2.2% overnight. 

Dollar selling spilled out broadly, sending the euro up to a three-week high at $1.0731. Against the yen, the dollar was stuck at 108.60 and near its lowest since November.

(With inputs from Reuters)