 "Markets trim losses; Sensex holds 26,000, Smallcaps outperform")
Markets have recovered from day’s low but continue to maintain the negative trend weighed down by metal, IT and bank shares. However, the downslide is limited due to buying demand among auto shares.
By 10:40 am, the Sensex was lower by 130 points at 26,089 and the Nifty has slipped 35 points at 7,946.
However, the broader markets are outperforming the benchmark indices- BSE Midcap and Smallcap indices are up 0.2-1%. The markets breadth turns positive with 1,054 advances and 872 declines.
On the gaining side, Tata Motors, Maruti Suzuki, Axis Bank, L&T and Bajaj Auto are up 0.2-2%.
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Updated at 9:30
Markets have started the session on a lower note on the back of weak performance among global peers. The US markets suffered heavy losses on Friday following US Federal Reserve’s decision to maintain status quo on interest rates raising fears about global growth especially in China.
By 9:30, the Sensex was lower by 207 points at 26,012 and the Nifty has slipped 59 points at 7,923.
Among broader markets, BSE Midcap and Smallcap indices are trading marginally lower. The markets breadth is negative with 742 declines and 512 advances.
The markets will remain volatile ahead of the near-month September derivatives contracts expiry on Thursday, as traders roll-over positions to the October 2015 series.
According to SBI Research, benign food inflation, sufficient transmission of policy rates and the spread of monsoon makes a case for at least 25 basis points (bps) cut in repo rate by the Reserve Bank.
GLOBAL MARKETS
Asian shares tumbled on Monday after the US Federal Reserve's decision to keep interest rates at record lows raised fresh concerns about growth globally, particularly in China.
MSCI's broadest index of Asia-Pacific shares outside Japan fell 2%, with Australia down 2.4% and South Korea off 1.7%. Japan was closed for a long holiday.
Both the Shanghai Composite index and the CSI300 were little changed.
Investors will be focusing on flash manufacturing activity readings from China and the eurozone on Wednesday.
A Reuters poll showed economists expect the flash September China factory PMI headline reading to edge up to 47.5 from 47.1 in August.
But it likely remained near 6/1-2-year lows, pointing to a seventh straight contraction in activity on a monthly basis.
SECTORS & STOCKS
BSE Bankex and BSE Metal index have slumped over 1% followed by counters like FMCG, Power, Realty and Consumer Durables, all declining by almost 1% each.
The top losers from the Sensex pack are Hindalco, ICICI Bank, Tata Steel, HDFC, NTPC, SBI, Axis Bank and ITC.
Tata Steel has raised more than Rs 4,100 crore through the sale of non-core assets so far this fiscal as part of efforts to strengthen its balance sheet and generate cash.
Shares of National Buildings Construction Corporation (NBCC) are trading higher by over 1% at Rs 938 on the BSE after the company secured Rs 197-crore project to build a trade facilitation centre and crafts museum at Varanasi.
With Reuters input
By 10:40 am, the Sensex was lower by 130 points at 26,089 and the Nifty has slipped 35 points at 7,946.
However, the broader markets are outperforming the benchmark indices- BSE Midcap and Smallcap indices are up 0.2-1%. The markets breadth turns positive with 1,054 advances and 872 declines.
Also Read
The top losers from the Sensex pack are HDFC, Hindalco, M&M, Tata Steel and DR Reddy’s Labs.
On the gaining side, Tata Motors, Maruti Suzuki, Axis Bank, L&T and Bajaj Auto are up 0.2-2%.
*******************************************
Updated at 9:30
Markets have started the session on a lower note on the back of weak performance among global peers. The US markets suffered heavy losses on Friday following US Federal Reserve’s decision to maintain status quo on interest rates raising fears about global growth especially in China.
By 9:30, the Sensex was lower by 207 points at 26,012 and the Nifty has slipped 59 points at 7,923.
Among broader markets, BSE Midcap and Smallcap indices are trading marginally lower. The markets breadth is negative with 742 declines and 512 advances.
The markets will remain volatile ahead of the near-month September derivatives contracts expiry on Thursday, as traders roll-over positions to the October 2015 series.
According to SBI Research, benign food inflation, sufficient transmission of policy rates and the spread of monsoon makes a case for at least 25 basis points (bps) cut in repo rate by the Reserve Bank.
GLOBAL MARKETS
Asian shares tumbled on Monday after the US Federal Reserve's decision to keep interest rates at record lows raised fresh concerns about growth globally, particularly in China.
MSCI's broadest index of Asia-Pacific shares outside Japan fell 2%, with Australia down 2.4% and South Korea off 1.7%. Japan was closed for a long holiday.
Both the Shanghai Composite index and the CSI300 were little changed.
Investors will be focusing on flash manufacturing activity readings from China and the eurozone on Wednesday.
A Reuters poll showed economists expect the flash September China factory PMI headline reading to edge up to 47.5 from 47.1 in August.
But it likely remained near 6/1-2-year lows, pointing to a seventh straight contraction in activity on a monthly basis.
SECTORS & STOCKS
BSE Bankex and BSE Metal index have slumped over 1% followed by counters like FMCG, Power, Realty and Consumer Durables, all declining by almost 1% each.
The top losers from the Sensex pack are Hindalco, ICICI Bank, Tata Steel, HDFC, NTPC, SBI, Axis Bank and ITC.
Tata Steel has raised more than Rs 4,100 crore through the sale of non-core assets so far this fiscal as part of efforts to strengthen its balance sheet and generate cash.
Shares of National Buildings Construction Corporation (NBCC) are trading higher by over 1% at Rs 938 on the BSE after the company secured Rs 197-crore project to build a trade facilitation centre and crafts museum at Varanasi.
With Reuters input