Markets turn choppy ahead of F&O expiry

Benchmark indices are trading in a tight range with positive bias as investors turn cautious ahead of expiry of August derivative contracts today. 

 

At 14:45 PM, the 30-share Sensex is up 34 points at 26,594 and the 50-share Nifty is up 7 points at 7,943.

 

Among broader markets, BSE Midcap and Smallcap indices are trading mixed. The market breadth in BSE remains marginally weak with 1,493 shares declining and 1,298 shares advancing. 

 

Further, the government will release first quarter GDP data on Friday. On Wednesday, two ahead of the GDP numbers being officially announced, ratings agency Moody’s raised the first quarter growth estimate to 5.1% from the sub-five levels that has been clocked over the past two years.

 

Bank of America-Merrill Lynch has said that the RBI will cut repo rate by 75-100 bps starting early 2015 and expects a rate cut even if Fed hikes US rates. 

 

Meanwhile, the stock market will remain closed tomorrow on account of Ganesh Chaturthi. 

 

GLOBAL MARKETS

 

Tokyo stocks fell on Thursday as concerns about Japan's economic recovery pushed investors to the sidelines as they waited for a batch of key data out on Friday.

 

The Nikkei share average ended 0.5% lower to 15,459.86.  The broader Topix declined 0.4% to 1,280.74, and JPX-Nikkei Index 400 fell 0.5% to 11,630.32.

 

Hong Kong's benchmark index finished at a two-week low in choppy conditions on Thursday, hurt by continued weakness in the Chinese onshore market and poor corporate earnings.

 

The Hang Seng Index closed down 0.7% at 24,741.00 points. It opened up 0.6 percent on a firmer Wall Street but swung as much as 1% lower during the session.

 

European shares edged lower ahead of the release of the revised US gross domestic product figures for the second quarter later in the global day. Asian stocks were mixed. Brent crude oil futures fell as expectations of ample supply weighed on prices.

 

RUPEE

 

The rupee is trading at 60.48 versus its previous close of 60.45/46. The Indian unit's gains are likely to be limited by month-end dollar demand from importers.

 

SECTORS & STOCKS

 

BSE Oil & Gas, Capital Goods and Auto indices have gained by 1% each. However, BSE Realty index has slipped by almost 2% followed by counters like Healthcare, IT, Metal and Power, all declining marginally. 

 

PSU OMCs have gained after the government on Wednesday, 27 August 2014, removed the restriction of one subsidized LPG cylinder per month for each consumer. The restriction of 12 subsidized cylinders per consumer per annum continues. HPLC, BPCL and IOCL have gained between 1-2%. GAIL has also gained by over 2%. 

 

From the capital goods space, BHEL and L&T have gained between 1-2%. Betting big on the new government's initiative to clear major infrastructure projects which were stuck, engineering major Larsen & Toubro said that it expects to bag a number of construction deals.

 

In the auto sector, Hero Moto, Tata Motors and Maruti Suzuki have gained by 1% each. Tata Motors has announced the launch of its passenger vehicle range in Algeria. 

 

Maruti Suzuki has said it would challenge the penalty imposed on it by the Competition Commission of India (CCI) for violation of trade norms in the spare parts and after services market.

 

Other notable gainers are ONGC, Wipro, ICICI Bank, RIL and HDFC. 

 

On the losing side, Tata Power, Tata Steel, NTPC, SBI and Sun Pharma have declined between 1-2%. 

 

Among other shares, TV Today Network has soared 6% to Rs 217, extending its previous day’s rally on National Stock Exchange (NSE), after Radhakishan Damani bought nearly 2% stake in the company for about Rs 20 crore through open market transactions.