 "Markets open flat; Tata group shares plunge after Cyrus Mistry's ouster")
Benchmark indices continue to trade lower weighed down by Tata group shares and HDFC twins.
By 10:40 am, the S&P BSE Sensex was down 133 points at 28,047 and the Nifty50 dipped 33 points at 8,676. Among broader markets, BSE Midcap and Smallcap indices were down 0.2%-0.4%.
Top losers from the Sensex pack are Tata Steel, GAIL, HDFC, Bharti Airtel and TCS, all down between 1%-3%. On the gaining side, Sun Pharma, Maruti Suzuki, Cipla, Axis Bank and Bajaj Auto are up almost 1% each.
Shares of Tata Group companies are trading weak, falling by up to 4% in early morning trade on BSE after Tata Sons said its board of directors had removed Cyrus Pallonji Mistry as chairman of the conglomerate and named Ratan Tata, chairman of Tata Trusts as interim chairman for four months. Tata Sons is the holding company of the Tata Group
Tata Steel, Tata Chemicals, Tata Communications, Indian Hotels, Tata Power, Tata Coffee, Tata Global Beverages, Tata Investment Corporation, Tata Elxsi, Tata Consultancy Services (TCS), Tata Metaliks and Tata Sponge are down between 1% and 4% on the BSE.
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Updated at 9:50 am
Markets have started the session on a flat note with shares of Tata group companies reacting negatively as Tata Sons, the holding company of the Tata Group, said its board of directors had removed Cyrus Pallonji Mistry, as chairman of the conglomerate.
Tata Sons on Monday removed Cyrus Mistry as its Chairman, nearly 4 years after he took over the reins of the group. Tata makes a comeback, taking over as the company's interim boss for 4 months. Tata Steel, Tata Motors and TCS are down 1%-3%.
"What could provide reassurance to the market is the fact that Mr. Ratan Tata is back in saddle as the interim Chairman and also the tight deadline of 4 months given to the Selection Committee by the Board of Tata Sons. Also, the Selection Committee comprises of venerable corporate leaders. After the initial wobble the stocks should stabilize in my view," says Ajay Bodke, CEO & Chief Portfolio Manager - PMS, Prabhudas Lilladher.
Tata Sons on Monday removed Cyrus Mistry as its Chairman, nearly 4 years after he took over the reins of the group. Tata makes a comeback, taking over as the company's interim boss for 4 months. Tata Steel, Tata Motors and TCS are down 1%-3%.
By 9:50 am, the S&P BSE Sensex was down 91 points at 28,088 and the Nifty50 dipped 35 points at 8,683. Among broader markets, BSE Midcap and Smallcap indices are down 0.3%-1%.
“Last week Nifty saw a good rebound from the lower end of the oscillation range. With no sign of any meaningful weakness the expectation of a continued up move remains firm. Considering the expiry week it could remain oscillating within the range. A sustained breach above 8780 could unfold fresh momentum & could extend the up move towards 8,900; hence long positions shall be maintained with a trail stop strategy below 8,620,” said Sacchitanand Uttekar, Equity Technical Analyst at Motilal Oswal Securities.
In the overseas markets, Japanese shares hit a six-month top on Tuesday as the dollar advanced on the yen, while risk sentiment got a lift after factory surveys in the United States and Europe boasted the best readings of the year so far.
Japan's Nikkei rose 0.8% to its highest since late April as a softening yen burnished the outlook for the country's exporters. Australian stocks added 0.6% and Taiwan 0.3%.
Markets elsewhere were more mixed, leaving MSCI's broadest index of Asia-Pacific shares outside Japan flat.
South Korea's main index slipped 0.6% after data showed Samsung Electronic's decision to scrap its Galaxy Note 7 dragged on the entire economy in the third quarter, though growth still pipped forecasts.
Wall Street had taken encouragement from upbeat corporate results and the Dow ended Monday up 0.46%, while the S&P 500 gained 0.47% and the Nasdaq 0.91%.
Oil prices dipped early on Tuesday over disagreement within producer cartel OPEC on who should cut how much production in a planned coordinated reduction to prop up prices.
Back home, foreign portfolio investors (FPIs) sold shares worth a net Rs 325.13 crore yesterday as per provisional data released by the stock exchanges.
Axis Bank, Adani Ports and Special Economic Zone, Asian Paints, Bharti Airtel, Dr Reddy's Laboratories, HDFC Bank, ICICI Prudential Life Insurance Company, IDBI Bank, IDFC Bank, Kotak Mahindra Bank and Zee Entertainment Enterprises will declare July-September 2016 quarter results today.
ICICI Bank, Adani Ports, Cipla, Sun Pharma and Axis Bank are up 1%-2%. On the losing side, Tata Steel, HDFC, HDFC Bank, TCS and Bharti Airtel are down 1%-2%.
Q2 EARNINGS REACTION
Reliance Capital on reported consolidated net profit of Rs 253 crore for the second quarter, up 1% from the year-ago period, as it made a provision to beef up reserves in general insurance business. Shares of Reliance Capital are marginally down.
Idea Cellular on Monday reported a 88% year-on-year (y-o-y) drop in its consolidated net profit at Rs 91.46 crore for the September 2016 quarter mainly on account of higher expenses and inflationary pressures even as the company witnessed a decline in voice realisation. The stock has dipped by almost 3%.
Mobile tower firm Bharti Infratel on Monday reported 31 per cent jump in net profit at Rs 774 crore for the quarter ended September 30, 2016. The stock is up over 1.5%.
Adani Power Limited, the power generation arm of Adani Group, registered net loss of Rs 135.49 crore on a standalone basis at the end of quarter ended September 30, 2016 as against Rs 188.51 crore in corresponding period of 2015. The stock is down nearly 2%.
With Reuters inputs
