Nifty hovers around 8,150; FMCG and financial shares weak

Benchmark indices have extended losses weighed down by selling pressure among financials and defensive sectors like FMCG and pharma.  

Barring China, all the major Asian peers are trading lower with Japanese equities hitting the skids on weak data.

By 10:20 am, the Sensex was lower by 86 points at 26,950 and the Nifty dipped 22 points at 8,155.

The top losers from the Sensex pack are ITC, Bharti Airtel, Lupin, ICICI Bank and Axis Bank.

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Updated at 9:30

Markets have commenced the session on a flat note tracking mixed trend across the Asian peers.  However, Chinese markets are tracking strong bucking the trend after it returns form a week-long holiday.

By 9:30, the Sensex was lower by 64 points at 26,971 and the Nifty dipped 26 points at 8,157.

Among broader markets, BSE Midcap index is marginally negative and the Smallcap index is up 0.3%. The market breadth is positive with 851 shares advancing and 468 sahres declining.

Meanwhile, foreign portfolio investors (FPIs) sold shares worth a net Rs 50.60 crore yesterday, as per provisional data released by the stock exchanges.

On Wednesday, benchmark share indices hit their highest level in over six weeks led by commodity shares tracking a recovery in global crude oil prices while beaten down metal shares surged amid value buying and short covering at lower levels.

MARKET VIEW

According to Anand Rathi morning note, “Yesterday CNX Nifty had opened slightly negative and fell towards 8,132 levels in the first half of the day as the bears tried to push the index in the negative zone. However, the bulls overpowered the bears as the index held onto its 8,120 levels and finally closed positive for the sixth consecutive session with the gains of 25 points. If the index fails to hold above 8,120 zones then momentum may fizzle out and market may tumble down towards next support of 8,050 zones.”

“Meanwhile, yesterday BSE Sensex opened negative but continued its positive momentum for six consecutive session. However it edged higher and regained the positive move in the later part of the day as it managed to close above 27000 marks with the gains of around 100 points. If the index fails to sustain 26,750 levels then profit booking may drag the index towards 26,500 levels.” it added.

GLOBAL MARKETS

Chinese stocks surged on Thursday after a week-long break as they tried catching up to a global rally, while most regional markets stepped back with Japanese equities hitting the skids on weak data.

MSCI's broadest index of Asia-Pacific shares outside Japan lost 0.3%. The index was on track to snap a 6-day winning streak that took it to a 1-1/2 month peak this week, propelled by a global surge in risk appetite as expectations of the Federal Reserve hiking interest rates this year ebbed.

Overnight on Wall Street, the S&P 500 soared to a 3-week high thanks to a bounce in biotechnology companies. Materials shares also enjoyed a positive session on the back of gains for precious metals.

The Fed opted not to hike rates in September in the wake of cooling global growth and fears of a deepening slowdown in China. And last week's soft US non-farm employment report prompted markets to scale back expectations that the Fed would hike rates later this year.

Japan's Nikkei lost 0.7% after weak Japanese machinery orders and a stronger yen soured sentiment. Hong Kong's Hang Seng fell 0.6%, South Korea's Kospi edged up 0.1% and Australian shares gained 0.4%.

Chinese stock markets, which have been hit by wild swings in recent months due to growth and policy worries, rallied after re-opening following an extended break since the end of September. Shanghai stocks rose 3.6%.

SECTORS & STOCKS

BSE IT and Realty indices are trading higher by almost 1% each. However, sectors like FMCG, Banks and Oil & Gas are trading lower between 0.4-1%.

The top gainers from the Sensex pack are Vedanta, Wipro, Dr Reddy’s Labs, Infosys and Sun Pharma.

On the losing side, ITC, ICICI Bank, Bharti Airtel, Reliance Inds and Coal India are down over 1%.

Cipla has firmed up its plan to manufacture and market respiratory products in Algeria in a joint venture partnership. The stock has gained marginally.

Four major banks -- SBI, Bank of Baroda, IDBI Bank and ICICI Bank -- are planning to take 53.63% equity stake in Chennai-based Consolidated Construction Consortium.

Tata Steel, which will commission a 3 million tonne steel plant in Kalinganagar by December, plans to scale up its operations gradually. Also, Tata Steel said its subsidiary in the UK and the trustee of the British Steel Pension Scheme had concluded the triennial actuarial valuation of the scheme.  Shares of Tata Steel are up over 1%.

Among other shares, HCL Infosystems has rallied 10% to Rs 56.90, extending its previous day’s 20% rally on the BSE, after Derive Investments, an investment company run by Radhakishan Damani, bought nearly two percentage point’s stake in the company at an average price of Rs 49.38 apiece through open market.

Shares of Genesys International Corporation has locked in upper circuit of 20% at Rs 69.30 on the BSE after the company announced that Quikr, an online cross-category classifieds company, is making an investment in Genesys' venture A.N.Virtual World Tech Ltd.

With Reuters input