Markets cautious ahead of inflation data

Sun Pharma among the top losers on the Sensex

Markets are trading on a subdued note in the morning deals ahead on inflation data due later in the day today. The Sensex is up 9 points at 17,642 and the Nifty ia trading at 5,350 higher by a point.

Meanwhile, most of the sectoral indices are trading flat. the BSE oil & gas index is the top sectoral gainer, up 0.6% or 46 points at 8,410 levels. Metal, PSU, bankex, auto and IT indices are also 0.2-0.5% each.

On the other hand, power, realty, healthcare, FMCG and capital goods indices are trading marginally lower.

Among the individual stocks, Tata Steel is trading higher by 3% at Rs 406, bouncing back 4.4% from intra-day low, after reporting a better-than-expected consolidated net profit of Rs 598 crore for the quarter ended June 30, 2012. Analysts, on an average, had expected net profit of Rs 530 crore for the quarter. Total income from operations grew 2.5% at Rs 33,821 crore on y-o-y basis.

Sun Pharmaceutical Industries has dipped 2.4% at Rs 666 on reports that a minority shareholder of Israel's Taro Pharma rejected the company’s revised offer price of $39.5 a share for a buyout.
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(Updated at 9:18 AM)

Markets have opened marginally lower in trades today tracking flat global cues. The Sensex has opened at 17,607 down 26 points and the Nifty has opened at 5,337, lower by 8 points.

Meanwhile, the Asian markets are trading on a flat note with investors staying sidelined ahead of more figures from Europe and the United States later in the day, after recent data showed the euro zone's debt woes were eroding business activity globally. The Hang Seng is up 0.2% at 20,130, Nikkei is up 46 points at 8,931 while Sanghai Composite was down 0.7% at 2,121.

Overnight, the stocks ended slightly lower on Monday as fatigue set in after a six-day rally and disappointing Japanese growth data provided a fresh reminder of the headwinds facing the global economy.

The Dow Jones industrial average ended lower by 38 points at 13,169, S&P500 Index was down 2 points at 1,404 and Nasdaq Composite Index was up 2 points at 3,022.52.

Back home, on the macro economic front, inflation data for the month of July is due later in the day today.

Sun Pharma is the top loser among the Sensex stocks, down 2% at Rs 668 on reports that the company will have to pay $600 million extra for the remaining shares Israeli drug major Taro Pharma under the new offer.

Sterlite Industries, Hindalco, Maruti Suzuki, Bajaj Auto, HDFC Bank, HDFC, Infosys, Tata Steel and Wipro have also opened lower by 0.5-1% each.

On the other hand, Coal India is the top gainer. The stock has advanced 2% to Rs 351 in the opening deals after the company post the market hours yesterday announced that its net profit for the quarter ended June 30 rose 8% to Rs 4,469.3 crore, against Rs 4,143.9 crore in the corresponding period last year. Net sales increased 13.8% to Rs 16,500.6 crore, against Rs 14,499.1 crore during the year-ago period.

Tata Motors, Mahindra & Mahindra, Tata Steel, Reliance Industries, Jindal Steel, BHEL, ICICI Bank, Gail India, TCS and Bharti Airtel are also trading higher by 0.4-1% each.

On the sectoral front, realty index is the top loser, down 0.4% at 1,666. Healthcare, capital goods, power and IT indices are also trading in the red. At the same time, BSE PSU index is the top sectoral gainer, up 0.5% at 7,173. Metal, oil & gas, auto, consumer durables and FMCG indices are trading on a flat note.

The broader markets are trading flat. The BSE mid-cap index is up 13 points at 6,142 and the small-cap index is up 26 points at 6,606.

The overall breadth is positive as 765 stocks are advancing while 512 are declining.