 "Sensex hovers near 27,000; Bank Nifty up 300 points")
Benchmark indices are moving higher after giving up robust early morning gains led by financials, auto and capital goods shares while sustained weakness in metal, information technology, FMCG and select index heavyweight stocks like RIL have kept the gains limited at higher levels.
At 13:08PM, the 30-share Sensex was up 131 points at 27,010 and the 50-share Nifty was up 43 points at 8,170.
Investors have exercised some caution in today’s session following a sharp spike in bond yields in developed markets and a downgrade from "overweight" to "underweight“ of Indian stocks by HSBC citing slowing earnings growth, little room for rate cuts and potential negative impact from an unusual weather due to El Nino. On the domestic front, slow pace of delivery on reform promises and rupee's fall to a 20 month low have kept the risk-appetite subdued.
In the broader market, both the BSE Midcap index, up nearly 1% and BSE Smallcap index, up 0.4% have performed better than the front-liners. Market breadth in BSE is positive with 1,313 advances against 1,091 declines.
Buzzing Stocks
Five out of the 12 sectoral indices of BSE are trading higher. BSE Bankex and Auto indices up nearly 0.9% each are the top gainers while BSE Realty and Metal indices down 0.8% and 0.5% each are the biggest losers.
Rate-sensitive stocks have witnessed fresh buying after retail inflation softened further to a four-month low of 4.87 per cent in April compared to 5.25 per cent in March giving rise to hopes of a rate cut by Reserve Bank of India. Axis Bank has gained over 2%, ICICI Bank is up 0.6%, SBI is up nearly 1% and HDFC twins have gained between 0.4-0.6 per cent each.
Among auto stocks, M&M has gained nearly 2% on reports of the carmaker's plans to launch a new variant of its sports utility vehicle XUV500. Hero Motocorp has gained 1.5% while Tata Motors and Maruti Suzuki have dropped nearly 0.5% each. Maruti Suzuki has produced a cumulative 1.5 crore units in the three decades it has been selling cars in India.
L&T and BHEL have gained up to 1%. Media reports suggest that L&T and Hyundai Heavy Industries have signed a Memorandum of Understanding to enable participation in expected GAIL tender for LNG carrier.
According to its release to BSE, BHEL has surpassed the capacity addition target, set by the government for utility projects, by 19%, accelerating its project execution momentum as part of its six point agenda for dynamic growth.
According to media reports, government has cleared on Wednesday cleared a proposal for 10 per cent disinvestment in Indian Oil Corp and 5 per cent in NTPC, which may fetch the government close to Rs 8,500 crore at the current prices. The stock is down 3.4%.
Shares of Hindalco have dropped over 3% after the quarterly earning of its subsidiary Novelis missed expectations. Vedanta is down 1.5%.
RIL is trading lower by 0.8%. Reliance Jio Infocom, a subsidiary of RIL has raised a $750 million loan backed by Korea Trade Insurance Corporation on May 7, 2015 which is guaranteed by RIL.
Shares of Gas Authorities of India Limited (GAIL India) jumped over 3% on reports that GAIL India is in talks to acquire Dabhol's 5 million tonne per annum regasification terminal.
At 13:08PM, the 30-share Sensex was up 131 points at 27,010 and the 50-share Nifty was up 43 points at 8,170.
Investors have exercised some caution in today’s session following a sharp spike in bond yields in developed markets and a downgrade from "overweight" to "underweight“ of Indian stocks by HSBC citing slowing earnings growth, little room for rate cuts and potential negative impact from an unusual weather due to El Nino. On the domestic front, slow pace of delivery on reform promises and rupee's fall to a 20 month low have kept the risk-appetite subdued.
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Among the key macro-data released yesterday, the retail inflation softened further to a four-month low of 4.87 per cent in April compared to 5.25 per cent in March. In contrast, factory output growth slowed to a five-month low of 2.1 per cent in March as against 5 per cent registered in February which could push the Reserve Bank of India (RBI) to slash key interest rates.
In the broader market, both the BSE Midcap index, up nearly 1% and BSE Smallcap index, up 0.4% have performed better than the front-liners. Market breadth in BSE is positive with 1,313 advances against 1,091 declines.
Buzzing Stocks
Five out of the 12 sectoral indices of BSE are trading higher. BSE Bankex and Auto indices up nearly 0.9% each are the top gainers while BSE Realty and Metal indices down 0.8% and 0.5% each are the biggest losers.
Rate-sensitive stocks have witnessed fresh buying after retail inflation softened further to a four-month low of 4.87 per cent in April compared to 5.25 per cent in March giving rise to hopes of a rate cut by Reserve Bank of India. Axis Bank has gained over 2%, ICICI Bank is up 0.6%, SBI is up nearly 1% and HDFC twins have gained between 0.4-0.6 per cent each.
Among auto stocks, M&M has gained nearly 2% on reports of the carmaker's plans to launch a new variant of its sports utility vehicle XUV500. Hero Motocorp has gained 1.5% while Tata Motors and Maruti Suzuki have dropped nearly 0.5% each. Maruti Suzuki has produced a cumulative 1.5 crore units in the three decades it has been selling cars in India.
L&T and BHEL have gained up to 1%. Media reports suggest that L&T and Hyundai Heavy Industries have signed a Memorandum of Understanding to enable participation in expected GAIL tender for LNG carrier.
According to its release to BSE, BHEL has surpassed the capacity addition target, set by the government for utility projects, by 19%, accelerating its project execution momentum as part of its six point agenda for dynamic growth.
According to media reports, government has cleared on Wednesday cleared a proposal for 10 per cent disinvestment in Indian Oil Corp and 5 per cent in NTPC, which may fetch the government close to Rs 8,500 crore at the current prices. The stock is down 3.4%.
Shares of Hindalco have dropped over 3% after the quarterly earning of its subsidiary Novelis missed expectations. Vedanta is down 1.5%.
RIL is trading lower by 0.8%. Reliance Jio Infocom, a subsidiary of RIL has raised a $750 million loan backed by Korea Trade Insurance Corporation on May 7, 2015 which is guaranteed by RIL.
Shares of Gas Authorities of India Limited (GAIL India) jumped over 3% on reports that GAIL India is in talks to acquire Dabhol's 5 million tonne per annum regasification terminal.