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Markets have recovered on firm European cues and Nifty has reclaimed its crucial 7,800 amid short covering. Earlier, markets slipped in the negative terrain with Nifty trading at one-year low as it slips below the crucial 7,700 mark as global equities tumble on worries in Chinese economy coupled with falling prices in oil and other commodities in the late morning trades.
At 12:45 PM, the 30-share Sensex is up 90 points at 25,831 and the 50-share Nifty has gained 23 points at 7,834. The broader markets also shed some of their early gains with the BSE Mid-cap is down 1.3% while Small-cap index has slumped down 3% . Market breadth turned weak with 2,035 losers and 400 gainers on the BSE.
RUPEE
The rupee is trading at 66.71 against the US dollar down 7 paise as global meltdown fears remained unabated amid weakness in the local equities.
GLOBAL MARKETS
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Most Asian markets except China and Japan were trading higher after the sharp drop in the previous session. Stocks in China continued to witness selling pressure as investors shunned riskier assets on concerns over sluggish economic growth.Shanghai Composite was down 4.5% while Japan's Nikkei turned choppy and was down 1%. The Hang Seng gained 1.6% and Straits Times was up 1.8%.
STOCK TRENDS
All sectoral indices are trading in red with BSE Capital Goods, Power, Healthcare indices trading lower between 3-4%.
IT and Pharma stocks have slipped in the red on profit booking at higher levels. Lupin, Sun Pharma, Infosys, Cipla, Dr Reddy’s Lab, TCS and Wipro have lost between 0.5-4%.
Tata Motors is trading with marginal losses on concerns over weak demand for luxury car JLR in China was up 1.5%.
The metal stocks are reeling under pressure on worries of slowdown in the Chinese shares with Shanghai slipping nearly 5%. Copper prices tumbled to six-year lows on Monday alongside Shanghai equities on growing nervousness about economic activity and demand prospects in top industrial metals consumer China. Vedanta, Hindalco, SAIL and Hindustan Copper are trading lower between 3-6%.
Oil and Gas majors are trading lower on further drop in the crude oil prices. ONGC and RIL are trading with marginal losses.
Shares of power generation companies are trading at multi-year lows on the bourses.
According to CRISIL Ratings, power projects worth 46,000 mw are facing viability issues due to lack of long-term buyers for electricity, inadequate fuel supply, and aggressive bidding to win projects and coal blocks. Reliance Power (Rs 33) and Adani Power (Rs 20) are trading at lifetime lows.
A depreciating rupee has casted its shadow on the telecom stocks. Bharti Airtel, Rel Com and Idea are trading lower between 0.1-6% owing to the foreign currency debt on their books.
