 "IT shares weigh on markets; Infosys dips 1%")
Benchmark indices have extended losses and are trading near day’s low weighed down by IT and financial shares.
At 14:35 PM, the S&P BSE Sensex was down 112 points at 27,724 and the Nifty50 dipped 37 points at 8,555.
Top losers from the Sensex pack are Wipro, L&T, Adani Ports, Infosys and ICICI Bank, all slumping between 1%-3%.
Shares of Wipro have fallen to over two-year low at Rs 493, down 2.4% on the BSE. The stock of IT consulting & software major is currently quoting at its lowest level since June 5, 2014.
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Updated at 13:30
Benchmark indices continue to trade weak on caution ahead of the US Federal Reserve's direction on key policy rates at a meeting scheduled later today. Further, profit booking by institutional investors also dampened sentiment.
US Federal Reserve Chair Janet Yellen is scheduled to speak at the Kansas City Fed's annual Monetary Policy Symposium in Jackson Hole, Wyoming.
AT 1:30PM, the S&P BSE Sensex was down 56 points at 27,780 and the Nifty50 dipped 15 points at 8,577. In the broader markets the BSE Midcap and Smallcap indices were trading flat with positive bias
Meanwhile, the Reserve Bank of India (RBI) on Thursday announced a comprehensive set of measures to change India’s lacklustre bond market and provide a push to the currency market as well.
Back home, foreign portfolio investors (FPIs) sold shares worth a net Rs 372 crore while domestic institutions were net sellers to the tune of Rs 357 crore on Thursday, as per provisional data released by the stock exchanges.
The India Meteorological Department (IMD) in its monsoon update issued yesterday, said that for the country as a whole, cumulative rainfall during this year's monsoon so far (till 24 August 2016) was 2% below the long period average (LPA).
Infosys was down 1%. IT major Infosys said that the company will give a clearer picture of the guidance post the September quarter. At an analyst meet today, the management also said that its performance in second quarter will be better than the first quarter. Infosys also acknowledged that the cancellation of the RBS contract was an instance of cautiousness among key financial clients due to Brexit.
Tata Motors was up over 1%. The auto major is scheduled to announce Q1 June 2016 results today. The stock has gained over 1.5%.
Adani Ports extended losses and was down 2% amid profit taking after recent gains post robust June quarter earnings. The stock had gained over 20% in the ahead of its June quarter earnings.
Lupin has firmed up by 1% after the pharma major received approval from USFDA for Paroxetine extended release tablets.
Among other shares, Shares of textile company Trident surged 15% to Rs 57.40 on the National Stock Exchange (NSE) on back of heavy volumes amid a media report which suggests that Target Group plans to shift Welspun contract to Trident.
