Markets turn weak; BHEL slumps 9%

Markets have turned weak in the late trades weighed down by banking and fmcg shares coupled with loss in BHEL after the company posted disappointing quarterly results.

At 2:10 pm, the Sensex was at 28,243, down by 53 points and the Nifty was at 8,568, down 21 points. Top 5 losers include BHEL, Coal India, SBI, Bajaj Auto and Axis Bank down between 1-9%.

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(updated at 2:10 PM)


Markets continue to trade flat in the late morning trades as gains in Vedanta amid reports that the company may start iron ore mining operations at the Codli mines in Goa on August 10 along with renewed buying interest in oil exploration majors ONGC and RIL is offset by losses in banking shares and FMCG majors.

Investors are keenly awaiting for the US jobs data later today that may help determine whether the Federal Reserve could raise interest rates in near future.

At 13.30 pm, the Sensex was at 28,304, higher by 6 points and the Nifty was at 8,584, down 5 points. The broader markets are outperforming their largecap peers, with the midcap and smallcap indices gaining 0.3% and 0.5% each. The market breath is strong, with 1,411 advancing stocks as against 1,097 declines.

RUPEE

The rupee is trading down by 6 paise at Rs 63.82 against the dollar due to appreciation of the US currency overseas ahead of the US jobs data.

Global Ratings agency Moody’s on Thursday said the Indian government’s plan to infuse Rs 70,000 crore equity capital into public sector banks (PSBs) is credit-positive, as it reverses an earlier policy of selective capital infusion.

The Employees Provident Fund Organisation (EPFO) has commenced investing into Indian stock markets, a move aimed at generating inflation-beating returns in the long term.

STOCK TRENDS

On the sectoral front, BSE Oil & Gas and Auto indices are trading higher by 15 and 0.5%. However, BSE Realty and Bankex are trading lower by 0.8% and 0.5% each.

Oil exploration companies, ONGC and RIL are trading higher by 2.4% and 1.8% each on renewed buying interest.

Vedanta is up 2% amid reports that the company may start iron ore mining operations at the Codli mines in Goa on August 10.

Auto majors Tata Motors and M&M are trading higher by 1.4% each ahead of the quarterly results due later today.

IT majors Infosys and Wipro are trading firm and are up 0.6% and 0.3% each on the back of a weak rupee. Meanwhile, a strong US jobs data is expected today which may further strengthen dollar.

Taro Pharma, the subsidiary of country's largest drug company Sun Pharmaceutical Industries  , has registered a 125.2 percent growth in net profit at USD 103.6 million in June quarter compared to USD 46 million in the year-ago period.  Sun Pharma is up 0.7%.

SBI is trading lower by 1.3% on caution ahead of the quarterly results later during the week.

Coal India (CIL) will invest Rs 13,900 crore to take its production to 908 million tonnes (MT) by 2019-20. The stock is down 1%.

Capital Goods major BHEL is trading with marginal losses ahead of the quarterly results due later today.

FMCG shares continue to face the selling pressure. ITC and HUL are down 1% and 0.8% each. Rainfall was 26% less than normal during the week that ended on Wednesday, mainly due to a 50% shortage in the southern states.

Banking shares are losing sheen in today’s trade. Axis Bank, HDFC twins, ICICI Bank are down between 0.2-0.7%.