Markets erase gains, Nifty below 8,300; market breadth weak

Markets have erased early gains and have turned flat with Sensex and Nifty swingi8ng between negative and positive zone.

By 10:15 am, the Sensex was higher by 30 points at 27,501 and the Nifty dipped by 2 points at 8,293.

The top losers from the Sensex pack are Coal India, Cipla, HDFC Bank, TCS and ITC.

On the gaining side, Bajaj Auto, BHEL, Hindalco, Tata Steel and Maruti Suzuki have gained between 1-2.3%.


*****************************
Updated at 9:30 am

Markets have started the session on a higher note tracking firm trends among global peers along with buying demand among metal shares leading the up-move.

By 9:30, the Sensex was higher by 89 points at 27, 560 and the Nifty gained 20 points at 8,316.

 
Among broader markets, BSE Midcap and Smallcap indices are up 0.1-0.3%. Markets breadth is positive with 793 shares advancing and 345 shares declining.

MARKET VIEW

According to Anand Rathi’s morning note, “Nifty has to hold above 8250-8280 zones to continue buying towards 8350-8380 zones. While, if it sustains below 8220 then it may again get stuck in range from 8080 to 8200 levels. Stock specific activities are likely to continue in the market for next coming sessions ahead of the second quarterly results. In case of Sensex, if it sustains above 27350 levels then buying interest may continue to take the index towards 27750 and 28000 levels while if it fails to hold 27250 levels then profit taking may drag the index towards 27000 and 26850 levels.”

Q2 EARNINGS

HDFC, Entertainment Network, Inox Wind, UPL will unveil their second quarter earnings today.  

GLOBAL MARKETS

Asian stocks on Monday were close to wiping out all their losses since China's shock currency devaluation in August, as global equities rallied after the Chinese central bank cut rates to shore up faltering growth in the world's second-largest economy.

Japan's Nikkei rose 1% to a two-month high while South Korea's Kospi gained 0.4% and the Australian shares edged up 0.3%.

MSCI's dollar-denominated index of Asia-Pacific shares outside Japan dipped 0.1% due to the dollar's strength but stood near 2-1/2-month highs touched on Friday.

The MSCI's index of the world's share markets shot up to its highest level in more than two months on Friday, having risen more than 10% from its two-year low hit less than a month ago.

It has recovered most of the losses since Aug. 11, when China's sudden devaluation of the yuan sparked worries its economy may be in deeper trouble than many had thought.

On Wall Street, S&P 500 Index rose 1.1% to turn positive on the year, while the tech-heavy Nasdaq jumped 2.3%.

SECTORS & STOCKS

BSE Metal and Auto indices are up almost 1% each followed by counters like Banks, Healthcare, IT, Capital Goods and Power, all gaining marginally. However, BSE Consumer Durables and Oil & Gas indices are trading marginally negative.

The top gainers from the Sensex pack are Vedanta, Hindalco, Tata Steel, Tata Motors, Bajaj Auto and ICICI Bank.

Telecom major Bharti Airtel today reported a Q2 net profit of Rs 1,523 crore, up 10.1% on an annual basis. Shares of Bharti Airtel are up almost 1%.

On the losing side, GAIL, Lupin, HDFC Bank, ITC and Coal India are down 0.2-0.6%.

With Reuters input