 "Sensex, Nifty consolidate as China markets stabilize")
After plunging over 2% in the previous session benchmark indices are seen consolidating tracking a rebound in Chinese stocks. Investors have sought the opportunity to buy the beaten down stocks at attractive valuations.
Meanwhile, caution continues to envelop the D-Street as investors eagerly await the fourth quarter earnings results starting next week with Infosys slated to announce its results on January 14, 2016.
At 10:35 am, the S&P BSE Sensex was up 34 points at 25,657 and the Nifty50 was up 11 points at 7,802.
Foreign Investors were net sellers in equities worth Rs 667 crore, as per provisional stock exchange data. On Monday, benchmark shares indices crashed over 2%, amid a sell-off in Asia and Europe, after suspension of trading in Chinese shares post the sharp plunge in Shanghai Composite.
GLOBAL MARKETS
Asian stocks are mostly trading in red with China’s benchmark index Shanghai Composite bucking the trend up 0.4% after the rout in the previous session. Japan’s Nikkei is down 0.2%, Hang Seng and Straits Times are trading flat with a negative bias.
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US stocks started the year 2016 on a weak note after the sell-off in Chinese stocks and weak US factory activity in December weighed on investor sentiment. The Dow Jones ended down 1.6% at 17,149, the broader S&P 500 ended down 1.5% at 2,013 and the tech-laden Nasdaq ended 2% lower at 4,903.
OIL
Oil prices bounced back today as a diplomatic row between Saudi Arabia and Iran worsened, but global crude over supply glut and economic weakness in China limit the rise.
RUPEE
The rupee has bounced back from a two-week low by gaining 15 paise to trade at 66.46 against the US dollar on fresh selling of the US currency by banks and exporters amid modest gains in the local equities.
KEY STOCKS
Most of the sectoral indices are trading in the green except for BSE IT, FMCG and Teck indices down between 0.1%-0.4%. Realty index was the top gainer up followed by Metal and Power indices.
Engineering major L&T is up 0.5%% after its IT subsidiary L&T Infotech received clearance from market regulator Sebi for its proposed Rs 2,000 crore IPO.
The slide in crude oil prices may push back development of the 98/2 block in the Krishna-Godavari basin, the most ambitious programme of state-run Oil and Natural Gas Corporation (ONGC), by at least two quarters. However, the stock is up 1%.
Tata Motors is up 0.5% after the sharp fall in the previous session on concerns that JLR sales in China could be hit after recent data showed the world's second largest economy continues to remain sluggish.
Among the index heavyweights Reliance Industries, ITC and HDFC are up between 0.3%-0.7% each.
Among individual names, Siti Cable Network has surged nearly 10% after the RBI allowed FIIs/FPIs to invest upto 49% of the paid-up capital of the company.
Sajjan Jindal-led JSW Steel said the Karnataka High Court gave the steel maker a 'partial' relief in the Forest Development Tax (FDT) case. The stock has gained over 15.
On the flip side, the IT pack is reeling under selling pressure on the back of an appreciating rupee. Infosys, Wipro and TCS have lost between 0.5%-1%.
Wipro, the country's third largest information technology services company, announced on Monday that Abidali Z Neemuchwala, currently its chief operating officer (COO), would become the new chief executive officer (CEO), succeeding T K Kurien, who would become executive vice-chairman.
Tata Consultancy Services has joined the bidding process for Perot Systems, an IT management business of Dell, according to media reports.
Among other buzzing stocks, the Reserve Bank of India (RBI) on Monday said it had imposed a Rs 1 crore penalty on State Bank of Travancore for violation of its instructions, on reporting of data to Central Repository of Information on Large Credits ( CRILC). The stock is down 1%.