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Benchmark indices continue to trade weak in the first session of the truncated week on persistent selling in blue chips on retrospective tax concerns and disappointing March quarterly results.
At 12.00 PM, the Sensex is quoting at 27,371, lower by 67 points and the Nifty has slipped below 8,273, down 32 points
The markets are likely to be volatile ahead of the upcoming April derivatives expiry on Thursday. A two-day meeting of the Federal Open Market Committee (FOMC) to review US monetary policy is scheduled on 28-29 April 2015; investors would be keenly awaiting indication on the timing of the first increase in US interest rates in nearly a decade.
RUPEE
Extending losses for the third consecutive day, the rupee shed 21 paise to hit a four-month low of 63.77 against the US dollar in early trade today at the Interbank Foreign Exchange due to continued demand for the American currency from importers.
SECTORS & STOCKS
On the sectoral front, all the sectoral indices are trading in red with BSE Healthcare, Consumer Durables and Realty indices leading the decline and are down up to 3%.
Jefferies cuts price target of Infosys to 1740 rupees from 1790 rupees; rating underperform. The stock is down 2%.
ICICI Bank and Maruti Suzuki are trading higher by 0.4% each ahead of the quarterly results due later during the day.
SBI defers plan to raise up to $2.4 bn via share sale to June from April
NTPC has gained nearly 2%. NTPC said that it has signed power purchase agreement (PPA) with Andhra Pradesh Eastern Power Distribution Company (APEPDCL) and Andhra Pradesh Southern Power Distribution Company (APSPDCL) for procurement of power to be generated from the 250 megawatts (MW) solar power plant, the first phase of the 1,000 MW ultra solar power project being set up by NTPC in Anatapur District in Andhra Pradesh
NRI billionaire Anil Aggarwal-led Vedanta is eyeing a minority stake in debt-laden Electrosteel Steels. The stock is up 1%.
The pharma stocks are the worst hit in today’s trade. Dr Reddy’s Lab, Sun Pharma, Cipla are trading lower up to 2.5%.
Shares of two wheeler companies are trading lower up to 2% crippling rural incomes most of which is dependent on agricultural output. Bajaj Auto and Hero Motocorp are down up to 2%.
Tractors will be the biggest loser if monsoon remains below normal even this year. The sharp decline in farm yield since the middle of last year coupled with lower realisations will directly impact tractor off-take, believe industry watchers. Shares of M&M are trading lower over 1%.
Madhya Pradesh government has asked Bharat Heavy Electricals Limited (BHEL) management to surrender a 32 acre prime land allotted to it in 1965. BHEL is down nearly 2.5%.
Shares of Bharti Airtel have slimbed nearly 0.5% ahead of its quasrterly results due tomorrow.
The midcap and smallcap indices are underperforming their largecap counterparts to register losses of nearly 2% and 2.5% each.
Symphony, Rolta India, Marico Kaya Enterprises, Titagarh Wagons, Cera Sanitaryware, Astra Microwave Products, VA Tech Wabag and Gujarat Gas Company from small-cap and United Breweries, Wockhardt, Aurobindo Pharma and Britannia Industries from mid-cap have fallen more than 5% each on the BSE. Most of these stocks have seen strong gains in the past one year.
The market breadth is weak on the BSE with 1,810 advances versus 410 asdvances.
