Nifty holds 8,750; ITC, Infosys up 1%

Benchmark indices opened flat with Sensex reclaiming its crucial level of 29,000 in the early trades however it slipped below the mark as investors turned cautious ahead of key events including Economic Survey, Railway Budget and Union Budget along with the expiry of February series due later during the week.

At 9.32 AM, the 30-share Sensex is up 15 points at 28,990, whereas the 50-share Nifty is up 3 points at 8,758.

Only days before the 2015-16 Budget, global ratings agency Standard and Poor’s (S&P) said the government must deliver on its reform promises, as low income levels and weak fiscal indicators were constraining the sovereign’s credit worthiness compared to its peers.

In the broader market, both the BSE Midcap and Smallcap indices are up 0.2% each. Market breadth is positive on the BSE with 550 declines against 878 advances.   

Foreign institutional investors (FIIs) were net buyers in Indian equities to the tune of Rs 602 crore on Monday, as per provisional stock exchange data.

GLOBAL MARKETS

Caution shrouded Asian markets on Tuesday as investors fretted over what Federal Reserve Chair Janet Yellen might say on the likely lift-off date for policy tightening later in the session.

Moves were marginal at best and MSCI's broadest index of Asia-Pacific shares outside Japan inched down 0.1%. The Nikkei dithered either side of flat after scoring a run of 15-year highs.

Oil prices tried to steady after their latest retreat, with US crude up 10 cents at $49.55.

On Wall Street, the Nasdaq had notched up nine straight sessions of gains in its longest since September 2010, aided by a further rise in Apple stock to an all time peak.

The Nasdaq ended Monday up 0.1%, while the Dow fell 0.13% and the S&P 500 lost 0.03%.

SECTORS & STOCKS

On the sectoral front, all sectoral indices are trading in green.  BSE Consumer Durables index is the top gainer up nearly 1% followed by BSDE Metal, Realty and FMCG indices up 0.4% each. 

State-owned Coal India (CIL) is gearing up to invest about Rs 6,000 crore towards capital expenditure in the next fiscal and an equal amount on augmenting other infrastructure, including rail connectivity. Stock climbed nearly 1%

A smart rally is evident in the  capital goods sector on expectations that the government will increase infrastructure spending and announce incentives to the manufacturing sector to boost growth. L&T surged nearly 1%.

State Bank of India (SBI), the country's largest lender, wants the government to increase the upper limit for interest subvention (subsidy) of home loans from Rs 15 lakh to Rs 25 lakh. The stock is down 0.2%.

Infosys is evaluating a dozen more startups after acquiring an automation startup Panaya for Rs 1,200 crore with an aim of gaining cutting-edge technology such as automation and artificial intelligence (AI). The stock is up 0.1%.

Hindalco has gained 0.4%. Last week, Hindalco won the Gare Palma IV/4 coal block in Chhatisgarh for Rs 3,001 per tonne, according to the results of e-Auction for Schedule II coal mines announced by the Ministry of Coal on Friday, 20 February 2015.

RIL has lost 0.5%. The stock had lost close to 3% in the last session over the corporate espionage controversy.

Sesa Sterlite has lost 1% on profit booking.  The company’s subsidiary Bharat Aluminium Company (Balco) bagged one more coal block and total two mines in the first tranche of auction.

ITC Hotels, India's second largest hotel chain, has emerged as the highest bidder for Goa-based Park Hyatt property, which was put on the block by IFCI. But the original owners allege the property is being sold at a throwaway price. The stock is trading 1% higher.

Boosting the prospects of Uttar Pradesh Chief Minister Akhilesh Yadav’s promise of providing adequate power supply by 2016-17, NTPC Limited has said it will supply an additional 1,657 Megawatt (Mw) to the state in two years. The stock is up 0.3%.