 "Markets open flat tracking mixed global cues")
Markets continue to trade with mild weakness after posting a huge rally yesterday as investors sought to profit booking at attractive levels. Losses in the home grown auto major Tata Motors is leading the decline on the Sensex after its retail sales moderated.
By 12:01 pm, the S&P BSE Sensex dipped 27 points to trade at 25,662 and the Nifty50 slipped 13 points at 7,853.
Metal shares have taken a hit in today’s session after the iron ore traffic, including pellets, at major ports saw a sharp fall of 28% in financial year 2015-16 as imports declined because of weak demand. Total iron ore cargo fell to 13 million tonnes (mt) from 18 mt a year ago.
Among the prominent laggards, NALCO, JSW Steel, Hindalco, Vedanta, Hindustan Zinc, NMDC and SAIL are down between 0.2%-2.5%.
Other losers include ONGC, Bharti Airtel, M&M, GAIL and Bajaj Auto dipped between 0.5%-2%.
___________________(updated at 11:05 am)
Benchmark indices continue to trade in a narrow range with negative bias weighed down by auto shares.
By 11:05 am, the S&P BSE Sensex dipped 65 points to trade at 25,624 and the Nifty50 slipped 23 points at 7,843. Broader markets are outperforming the benchmark indices- BSE Midcap and Smallcap indices are up over 0.1%.
The rupee was trading lower by 12 paise at a fresh two-week low of 66.70 against the US dollar on increased demand for the American currency from importers.
Oil traders moved cautiously in Asia today after the previous day's sharp losses as the threat of wildfires to Canada's crude-producing Alberta region eased and a strong greenback dampened appetite.
Tata Motors, M&M, GAIL, Bajaj Auto and ONGC are the top five Sensex losers, down 1%-2.5%.
Tata Steel has gained 2.5% to Rs 337 on the BSE in an otherwise range bound market after Tata Steel Europe announced that it has received seven expressions of interest for Tata Steel’s UK business which have been immediately taken forward to the next stage of the sale process.
Ujjivan Financial Services listed at Rs 232, a 10% premium against its issue price of Rs 210 per share on the National Stock Exchange (NSE).
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Updated at 9:30 am
Benchmark indices have open on a flat note amid mixed trend among global markets, along with profit booking after witnessing a strong rally yesterday.
On Monday, markets finished the session on a robust note on fresh buying by participants amid strength in the European equities. A weak jobs data dampened prospects for a Federal Reserve interest-rate hike next month further boosting the sentiment. Recent string of positive corporate results also raised tentative hopes about an improving domestic economy.
By 9:27 am, the S&P BSE Sensex inched up 3 points to trade at 25,692 and the Nifty50 dipped 2 points at 7,864. Broader markets are outperforming the benchmark indices- BSE Midcap and Smallcap indices are up 0.2%-0.3%.
"Yesterday’s push above 7,800 earlier in the day triggered short covering that has scaled the 7,900 mark. However oscillators have not yet aligned well with this move suggesting that either a short turn lower or a deeper correction is to be anticipated. To this end, the early range today is likely to be the 7,885-7,939. While these extremities can be expected to hold initial tests, a breakout will not be surprising, but need not be followed by directional moves though", adds Geojit BNP Paribas in a technical note.
Among overseas markets, Asian shares got off to a weak start on Tuesday, pressured by weaker crude oil prices, though Japanese shares got a tailwind as the dollar stood tall against the yen.
MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.3 percent in early trading. Wall Street put in a mixed performance overnight, undercut by tumbling oil prices amid expectations that US crude inventories would again build to record highs. Japan's Nikkei stock index added 0.7%.
Back home, foreign portfolio investors (FPIs) bought shares worth a net Rs 224.40 crore yesterday, 9 May 2016, as per provisional data released by the stock exchanges.
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According to Bank of America Merrill Lynch (BofA-ML) says in a report that emerging Asia, including India, is likely to see growth in consumption rather than in investment.
FII stance, movement of rupee and crude oil, Parliament proceedings, ongoing earning season along with progress of monsoon are the key drivers to dictate the trend on the bourses.
Besides, Zee Entertainment Enterprises, Century Plyboards (India), EID Parry (India), Kaveri Seed Company, Radico Khaitan, SKF India are scheduled to announce their Q4 March 2016 results today.
Among key stocks, Hindustan Unilever (HUL), posted a better-than-expected 7% increase in its standalone net profit at Rs 1,090 crore for the quarter ended March 2016, after witnessing a decline in the previous two quarters. The stock has gained over 1%.
Infosys Foundation, philanthropic arm of the IT major, has signed a pact with Indian Institute of Science Education and Research (IISER), Pune, to support students from economically weaker section to pursue 'high quality' education. Shares of Infosys are up 1%.
Metal shares have lost sheen after the iron ore traffic, including pellets, at major ports saw a sharp fall of 28% in financial year 2015-16 as imports declined because of weak demand. Total iron ore cargo fell to 13 million tonnes (mt) from 18 mt a year ago. Hindalco, Vedanta, Jindal Steel, NMDC, NALCO and SAIL have slumped between 1%-2%.
ALSO READ: Iron ore traffic falls by 28% at major ports
Tata Steel has received seven expressions of interest (EOI) for its UK business, which is up for sale. Tata Steel has taken forward only those proposals which are for all of Tata Steel's UK business and not in parts. The stock is trading marginally positive.
Shares of sugar companies have extended gains and rallied up to 8% on the BSE on expectation of strong earnings for quarter ended March 31, 2016 (Q4FY16).
Upper Ganges Sugar & Industries, Andhra Sugars, Kakatiya Cement Sugar & Industries, Mawana Sugars, Parry Sugar Industries, Ugar Sugar Works, Dharani Sugars, Uttam Sugar Mills, Riga Sugar, Kesar Enterprises, Oudh Sugar Mills and Thiru Arooran Sugars are up 4%-8%.
State-owned Oil and Natural Gas Corp's (ONGC) crude oil production has risen for the second consecutive year in 2015-16 but natural gas output continues to decline. The stock is down almost 1%.
Sun Pharmaceutical is up 0.5% after launching an innovative mobile app to connect doctors with asthma patients.
L&T Finance Holdings aims to sell private equity (PE) and proprietary investments worth Rs 800 crore, preferably in this financial year. Shares of L&T and L&T Finance Holdings are up almost 1% each.
Srikalahasti Pipes is up 3% after reporting a 55.72% jump in net profit at Rs 46.12 crore for the quarter ended March, 2016 as compared with Rs 29.62 crore in the corresponding quarter last year.
With Reuters input
