 "Nifty slips below 5,950, FMCG shares drag")
Benchmark indices are trading near day’s low amid weak global cues, along with FMCG and capital goods shares leading the decline. Meanwhile, investors are adopting a wait-and-watch stance ahead of expiry of July derivative contracts today.
At 14:15PM, the 30-share Sensex was down 223 points at 19,867 and the 50-share Nifty was down 63 points at 5,928. The Sensex and Nifty have touched an intra-day low of 19,858 mark and 5,925 levels, respectively.
Adds Devangshu Datta, Technical Analyst, “The Nifty is likely to range trade between 5950-6020 until expiry. Downwards bias but carryover considerations will keep the market stable. Breakout below 5950 could take it down till 5900.”
The benchmark Nikkei fell 1.1% to 14,562.93, after rising as high as 14,748.77 at the open. The broader Topix dropped 1.4% to 1,202.32.
European assets were flat in early trade on Thursday as investors trod cautiously before German and British data expected to add weight to signs the continent's economy is reviving.
The German IFO survey out at 0800 GMT is likely to show business morale picked up for a third consecutive month in July, while the first reading for Britain's second quarter GDP is tipped to show growth to have doubled from the first quarter.
The euro edged up 0.1% to about $1.3214 while Europe's broad FTSE Eurofirst 300 index was little changed at the open and Bund futures dipped slightly.
Back home, the rupee today rose by 30 paise to 59/dollar on fresh dollar selling by banks and exporters, tracking a weakness in the US currency overseas.
On the sectoral front, BSE FMCG index has dropped by 3% followed by counters like Power, Metal, Capital Goods, Healthcare, PSU and IT, all declining by 15 each. However, BSE Auto index has gained by almost 1%.
Wipro has slipped 5% to Rs 372 on NSE, ahead of its April-June (Q1) earnings tomorrow. Analysts expect the IT major to report a flat revenue growth in the recently concluded quarter.
From the FMCG space, ITC is trading lower by 4% at Rs 362 after reporting 18% year-on-year (yoy) jump in net profit at Rs 1,891 crore on back of strong performance across business segments. Analyst on an average had expected profit of Rs 1,869 crore from the fast moving consumer goods (FMCG) major.
Hindustan Unilever (HUL) is trading lower by nearly 4% at Rs 684, after its parent firm Unilever said that growth is slowing in emerging markets, as macro-economic headwinds influence consumer behavior.
Capital Goods shares continue to exhibit a weak trend post disappointing results from L&T. L&T and BHEL have declined between 1-2%.
Other notable losers are Tata Power, Sterlite, Cipla, Sun Pharma and Coal India.
On the gaining side, Auto major Hero MotoCorp has rallied by nearly 4% after reporting 100 bps improvement in operating margins at 14.8% for the first quarter ended June 30, 2013 on sequential basis due to 10% quarter-on-quarter decline in other expenditure. The company had operating margins at 13.8% in March quarter.
Tata Motors, Dr Reddy’s Lab and HDFC have gained by 1% each.
Among other shares, Muthoot Finance is trading lower by 2% at Rs 93.55, falling 15% from intra day’s high, after reporting a 21% year-on-year (yoy) decline in net profit at Rs 194 crore for the quarter ended June 30, 2013, due to lower operational income.
The market breadth in BSE remains dismal 1,377 shares declining and 720 shares advancing.
At 14:15PM, the 30-share Sensex was down 223 points at 19,867 and the 50-share Nifty was down 63 points at 5,928. The Sensex and Nifty have touched an intra-day low of 19,858 mark and 5,925 levels, respectively.
Adds Devangshu Datta, Technical Analyst, “The Nifty is likely to range trade between 5950-6020 until expiry. Downwards bias but carryover considerations will keep the market stable. Breakout below 5950 could take it down till 5900.”
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On the global front, the Nikkei share average fell for a second day on Thursday in volatile trade, as investors were disappointed with company results such as for blue-chip Canon Inc , which tumbled after slashing its profit outlook.
The benchmark Nikkei fell 1.1% to 14,562.93, after rising as high as 14,748.77 at the open. The broader Topix dropped 1.4% to 1,202.32.
European assets were flat in early trade on Thursday as investors trod cautiously before German and British data expected to add weight to signs the continent's economy is reviving.
The German IFO survey out at 0800 GMT is likely to show business morale picked up for a third consecutive month in July, while the first reading for Britain's second quarter GDP is tipped to show growth to have doubled from the first quarter.
The euro edged up 0.1% to about $1.3214 while Europe's broad FTSE Eurofirst 300 index was little changed at the open and Bund futures dipped slightly.
Back home, the rupee today rose by 30 paise to 59/dollar on fresh dollar selling by banks and exporters, tracking a weakness in the US currency overseas.
On the sectoral front, BSE FMCG index has dropped by 3% followed by counters like Power, Metal, Capital Goods, Healthcare, PSU and IT, all declining by 15 each. However, BSE Auto index has gained by almost 1%.
Wipro has slipped 5% to Rs 372 on NSE, ahead of its April-June (Q1) earnings tomorrow. Analysts expect the IT major to report a flat revenue growth in the recently concluded quarter.
From the FMCG space, ITC is trading lower by 4% at Rs 362 after reporting 18% year-on-year (yoy) jump in net profit at Rs 1,891 crore on back of strong performance across business segments. Analyst on an average had expected profit of Rs 1,869 crore from the fast moving consumer goods (FMCG) major.
Hindustan Unilever (HUL) is trading lower by nearly 4% at Rs 684, after its parent firm Unilever said that growth is slowing in emerging markets, as macro-economic headwinds influence consumer behavior.
Capital Goods shares continue to exhibit a weak trend post disappointing results from L&T. L&T and BHEL have declined between 1-2%.
Other notable losers are Tata Power, Sterlite, Cipla, Sun Pharma and Coal India.
On the gaining side, Auto major Hero MotoCorp has rallied by nearly 4% after reporting 100 bps improvement in operating margins at 14.8% for the first quarter ended June 30, 2013 on sequential basis due to 10% quarter-on-quarter decline in other expenditure. The company had operating margins at 13.8% in March quarter.
Tata Motors, Dr Reddy’s Lab and HDFC have gained by 1% each.
Among other shares, Muthoot Finance is trading lower by 2% at Rs 93.55, falling 15% from intra day’s high, after reporting a 21% year-on-year (yoy) decline in net profit at Rs 194 crore for the quarter ended June 30, 2013, due to lower operational income.
The market breadth in BSE remains dismal 1,377 shares declining and 720 shares advancing.