Markets erase early gains; ICICI Bank, RIL dip 1%

After a firm opening, markets have turned weak weighed down by Index heavyweights including ICICI Bank and RIL as investors turn cautious and book profits at higher levels ahead of the Union Budget 2015-16.

At 10.30 AM, the 30-share Sensex is up 5 points at 29326, and the 50-share Nifty has lost 12 points at 8,859.

ICICI Bank, RIL, Tata Power, Bajaj Auto, SBI are the top 5 losers on the BSE and are down between 1-1.5%.

__________________________

(updated at 10.50AM)

Markets continue to trade firm in the morning trades led by shares of consumer durables after Reserve Bank of India on Wednesday allowed nominated banks to provide gold on loan to jewelers. Also, a smart rally in the metal stocks is seen across the bourses.

At 10.30 AM, the 30-share Sensex is up 93 points at 29,414 and the 50-share Nifty has gained 17 points at 8,886.

Foreign institutional investors remain net buyers in equities after they bought equities worth Rs2,187.96 crore on Wednesday, as per the provisional stock exchange data.

SECTORS & BUZZING STOCKS

On the sectoral front, 11 out of 12 sectoral indices are trading in green.  BSE Metal index is leading the rally up nearly 1.4% followed by realty, Consumer Durables, Capital Goods indices up 1% each. However, BSE FMCG is losing sheen and is down 0.7%. 

Shares of steel companies are surging on hopes that the Chinese demand for iron would soar once Lunar New Year festivities wrap up later this month. Tata Steel and Sesa Sterlite are up 3% and 2% each. Among other metal stocks, Hindalco is up 1.3%.

City-based Cipla  Hyderabad's Natco and US drug maker Mylan are among the companies in the fray to buy select brands of Sun Pharma that have been put up for sale by the companies as per an order of the Competition Commission of India. Sun Pharma has gained over 0.8%, while chares of Cipla are surging by 1.6%.

Country's second largest software services firm Infosys has secured a multi-year, multi-million dollar deal with ABN AMRO to provide IT services to the retail and commercial bank. The stock is up 1.2%.

The Munjal family, the promoters of Hero MotoCorp, are selling part of their personal stake worth $300 million on Wednesday to invest in power and real estate sector. As per terms of the transaction, the Rs 1860 crore deal offers 7 million shares at 3 to 5 per cent discount to Monday's share price. The stock has rebounded from yesterday’s low on value buying. The stock is up 1%.

In a move aimed at increasing its data revenue, telecom major Bharti Airtel launched its first pan-Africa customised 3G smartphone for $53 to tap mobile Internet users. The stock has soared over 1%.

State-run petroleum explorer Oil and Natural Gas Corporation (ONGC) said it has signed a Memorandum of Understanding with Super Wave Technology (SWTPL) for development of an alternative to hydraulic fracturing or fracking technology that is used to produce shale oil and gas. The stock is up nearly 1%.

Shares of jewellery maker such as Gitanjali Gems, Tribhovandas Bhimji Zaveri (TBZ), PC Jeweller, Rajesh Exports and Titan Company are trading higher by up to 5% on reports that the Reserve Bank of India on Wednesday allowed nominated banks to provide gold on loan to jewellers.

Shares with differential voting rights (DVRs) have rallied by up to 14% on the Bombay Stock Exchange (BSE) after the exchange has announced new norms for considering DVRs in the indices, including Sensex and BSE 100.

Shares of Bharat Forge were trading higher by 3.5% at Rs 1,265 on NSE after the company announced it has signed a multi-year contract with Boeing Commercial Airplane to supply titanium forgings for wing components for the Next-Generation 737 and 737 MAX.

Shares of M&M are up by 1%. M&M has decided to recall all the XUV500 vehicles, manufactured on of before July 2014 for the up gradation of the side curtain airbag.

Tata Consultancy Services (TCS), India's largest information technology services provider, announced on Wednesday it had partnered Startupbootcamp FinTech, an accelerator, to host Pitch Days in India. The stocjk is up 0.5%.

In the broader market, the BSE Mid-cap and Small-cap indices are trading in line with the large counter parts and are up 0.5% each.

Market breadth was positive with 1,154 gainers and 459 losers on the BSE.