 "Bank shares keep markets under pressure")
Markets pared early gains and were trading lower in late noon trades as investors booked profits in financials after sharp gains in the previous week while technology shares weakened tracking losses in technology shares on the Nasdaq.
At 2:30pm, the S&P BSE Sensex was down 118 points at 24,528 and the Nifty50 was down 36 points at 7,449.
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- Asian shares bounce off three-year lows while Chinas suffering goes on
Foreign investors were net sellers in equities to the tune of Rs 672 crore on Friday, as per provisional stock exchange data.
BUDGET
Finance Minister Arun Jaitley on Tuesday announced he was withdrawing a controversial Budget proposal to tax 60% of EPF balances at the time of withdrawal. He also withdrew another proposal to tax contribution made by an employer beyond Rs 1.5 lakh a year. However, the proposal to not tax 40 per cent of money withdrawn from national pension system stays.
SECTORS & STOCKS
BSE Bankex and IT indices were the top losers down over 1.3% each. However, metal, oil and gas indices came off their early highs and were trading 1.3%-1.4% higher.
Bank stocks witnessed profit taking after surging 8%-20% last week. Bank of Baroda, SBI, Punjab National Bank, Kotak Mahindra Bank, ICICI Bank, YES Bank, Axis Bank and HDFC Bank were down 0.9%-4.5% each.
IT shares weakened trackign losses in technology shares on the Nasdaq on Monday. Infosys eased 1.7% while TCS was down 0.7%.
Oil shares firm up tracking a rally in global crude oil prices after Brent crude touched a three-month high to touch $39.50 per barrel while US West Texas Intermediate (WTI) futures was higher at $36.53 a barrel, up 61 cents from the last close. Cairn India was up nearly 7% while ONGC and Reliance Industries were up over 1% each.
Metal stocks gained for the eight straight day tracking sharp rally in global commodity prices. Globally, iron ore prices surged 19% amid emerging demand from China. SAIL and NMDC jumped over 6% each on the BSE. Vedanta, National Aluminium, Tata Steel, Jindal Steel & Power and Hindalco were up 1.7%-4%.
Coal India was marginally up after the company said in a notice to BSE that its board approved dividend of Rs.27.50 per share.
Sugar stocks are surging across the board on expectations of lower domestic sugar output in FY16 owing to drought conditions in major producing states together with mandatory exports that have led to an uptrend in domestic sugar prices. Dwarikesh Sugar Industries, Dalmia Bharat Sugar, Oudh Sugar Mills, Kesar Enterprises, Uttam Sugar Mills and Rajshree Sugars have rallied more than 9% each.
Tata Motors was trading flat. The auto major tied up with Bharat Forge Ltd and US-based General Dynamics Land Systems Inc. (GDLS) for the Indian defence ministry’s futuristic infantry combat vehicle (FICV) programme.
Among others, shares of Tide Water Oil zoomed nearly 10% to Rs 27,503 after the company announced March 17, 2016 as the record date for stock split and bonus equity shares.
Just Dial plunged 14% to Rs 650 in intra-day deals on back of heavy volumes after the stock appreciated more than doubled from its 52-week low.
Elecon Engineering Company surged 7% to Rs 56.50 after the company said that it has received fresh order from Garden Reach Shipbuilders and Engineers.
Eveready Industries has surged 7% to Rs 249 after the company announced that it plans to make a foray into home appliances sector.
Ajanta Pharma surged nearly 3% at Rs 1,435 after the company said it has received final approval of Almotriptan Malate tablets in dosages of 6.25mg and 12.5mg.
Strides Shasun gained nearly 4% to Rs 1,073 after the company said it subsidiary plans to acquire three brands from Sweden-based Moberg Pharma.
