 "Markets witness profit-booking amid consolidation")
After a firm opening, markets have turned flat and are trading in a narrow range as investors book profits in the frontliners at higher levels amid monsoon woes.
Meanwhile, losses in private banking shares after government decided to keep banks out of the composite foreign investment cap have offset gains in technology and healthcare stocks.
At 11.35 AM, the Sensex was flat at 28,443, while the Nifty was unchanged at 8,604. However, there is some action visible in the broader market with BSE Midcap and Smallcap indices up 0.2% and 0.7% each
RUPEE
The rupee recovered by 3 paise to 63.48 against the US dollar on fresh selling of the American currency by exporters amid increased foreign capital inflows.
OIL
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Oil prices edged up on Friday but ongoing concerns about a global supply glut coupled with increasing dollar strength is likely to weigh on the downside.
MONSOON
The southwest monsoon was 32 per cent below normal in the first 15 days of July, key month for sowing of kharif crops. Large tracts of central and southern India remained dry. This could have serious impact on the final output of pulses and oilseeds, unless there is a pick-up in the second half of this month. July is traditionally when there is the largest amount of rain in the four-month monsoon.
STOCK TRENDS
On the sectoral front, barring BSE Metal and Bankex, all other sectoral indices are trading in green with BSE Consumer Durables, IT, Healthcare and Oil & Gas indices trading higher up to 1%.
Yesterday, the Cabinet cleared a proposal to merge the limits of foreign direct and portfolio investments into composite caps to make foreign investment regime easier. Composite caps have been suggested for sectors like agriculture, tea plantations, petroleum and natural gas, manufacturing, airports, real estate, telecommunications, mining, non-banking financial companies and pharmaceuticals.
Capital Goods majors BHEL and L&T continue to rally in today’s trade. BHEL and L&T are up 1.2% and 0.10% each.
Shares of Sun Pharma are trading higher by 1% after CLSA upgraded the stock. Among its peers, Lupin and Cipla are up 0.9%.
Oil and Gas major ONGC is trading with marginal gains on news stating that after its overseas arm ONGC Videsh is in a race to acquire two out of 14 blocks being offered by Mexico in historic auctions that are part of the Latin American nation’s energy reforms. RIL is up 0.6%.
Telecom major Bharti Airtel surges 1% on unveiling 4G trials in Hubli and Dharwad.
Tata Steel is up 1% after the company announced its plans to refocus its speciality and bar business on high-value markets such as aerospace.
Tata Motors is down 0.75 as it has proposed to raiseRs.4,400 crore from non-convertible debentures during the current fiscal to meet its expansion plan. Meanwhile, Barclays downgraded the stock.
Financials declined across the board on account of profit booking. HDFC, HDFC Bank, Axis Bank are down between 0.3-0.8%.