 "Markets remain marginally weak; broader markets outperform")
By 10:35 am, the S&P BSE Sensex was lower by 39 points at 26,828 and the Nifty50 dipped 15 points at 8,224. Broader markets are outperforming the benchmark indices- BSE Midcap and Smallcap indices are up 0.4% each.
India announced on Monday sweeping reforms to rules on foreign direct investment, clearing the way for Apple to open stores in the country and announcing easier terms for investors in sectors ranging from civil aviation to pharmaceuticals.
Asian shares rose after a tentative start on Tuesday, cautiously extending a rally triggered by growing expectations that British voters will opt to remain in the European Union in this week's referendum.
MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.2%. Investors remain wary ahead of Thursday's British vote, as well as Federal Reserve chief Janet Yellen's two-day testimony before Congress starting later on Tuesday, as she might offer clues on the timing of the next US interest rate increase.
Back home, top losers from the Sensex pack are NTPC, Axis Bank, RIL, Bharti Airtel and Asian Paints, all falling between 0.9%-1.3%. On the gaining side, Bajaj Auto, M&M, Adani Ports, ONGC and Coal India are up 0.6%-1.4%.
Hindalco has gained 3% to hit its 52-week high of Rs 124 on the BSE, extending its past one month rally, after the company reported better-than-expected results for the quarter ended March 2016 (Q4FY16).
Among other shares, Kesar Terminals & Infrastructure has surged 18% to Rs 535, also its 52-week high on the BSE in early morning trade, after the company announced that the board will meet on Friday to consider bonus issue of equity shares.
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Updated at 9:45 am
Markets have turned weak after making a flat opening tracking mixed trend among global peers.
However, as the likelihood of Brexit fades and the progress of monsoon is witnessed, some fresh buying can be experienced across the board later during the session.
By 9:45 am, the S&P BSE Sensex was lower by 50 points at 26,817 and the Nifty50 dipped 18 points at 8,221. Broader markets are outperforming the benchmark indices- BSE Midcap and Smallcap indices are up 0.25-0.3%.
"The horizontal resistance of 8333 is expected discourage upside attempts. This suggests that, the challenge for the day, atleast in the initial hours would be to play the turn lower from the 8252 region. It would require a direct rise above 8333 to usher in more strength in which case 8440 would be achieved swiftly," says Geojit BNP Paribas in a morning note.
In overseas markets, most Asian shares rose today on growing expectations that British voters will opt to remain in the European Union in this week's referendum. But investors remain wary ahead of Thursday's vote, as well as Federal Reserve chief Janet Yellen's two-day testimony before Congress which starts later today in which she might offer clues on the timing of the central bank's next interest rate increase.
US stocks ended higher yesterday but off their session highs, following the lead of European markets as polls showed support swinging back toward the UK remaining a member of the European Union ahead of a referendum.
Closer home, foreign portfolio investors (FPIs) sold shares worth a net Rs 537.46 crore yesterday as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 724.06 crore yesterday as per provisional data.
Mahanagar Gas (MGL) opens its initial public offer (IPO) of 2.46 crore shares today. The issue will close on Thursday, 23 June 2016. The price band for the issue has been fixed at Rs 380 to Rs 421. The IPO includes offer for sale of upto 1.23 crore shares by GAIL (India) and upto 1.23 crore shares by BG Asia Pacific Holdings PTE Ltd (BGAPH).
The company is promoted by GAIL India and BGAPH, each of who holds 45% of the company's equity shares. MGL is one of the largest city gas distribution (CGD) companies in India.
Shares of GAIL have gained by over 1%. Other notable gainers are Adani Ports, M&M, ONGC, Coal India and Bajaj Auto.
Mahindra First Choice Services (MFCS), a wholly-owned subsidiary of Mahindra and Mahindra, said on Monday it plans to take the numebr of its service outlets to 400 this financial year at an investment of about Rs 350 crore.
On the losing side, Bharti Airtel, Axis Bank, L&T, HDFC Bank and Asian Paints are down 0.7%-1.2%.
Most of the telecom operators have shown improvement in network performance although Airtel, Vodafone, Reliance, Aircel and Idea need to better their call drop rate performance in Delhi-NCR, Trai said on Monday.
Bank stocks are in focus after the finance ministry in its quarterly revision on interest rates on small savings schemes kept the rates unchanged for Q2 September 2016. The government now announces revision in interest rates on small saving schemes on quarterly basis as against the earlier practice of annual revision.
