 "Markets open subdued tracking global cues")
By 10:35 am, the S&P BSE Sensex was down 22 points at 27,963 and the Nifty50 slipped 8 points to trade at 8,622. Among broader markets, BSE Midcap index is down 0.3% while the Smallcap index is up 0.2%.
Top gainers from the Sensex pack are TCS, Infosys, GAIL, Tata Steel and Wipro. On the losing side, SBI, Sun Pharma, Bajaj Auto, ONGC and Hero MotoCorp are down nearly 1% each.
Among other shares, Welspun India was locked in 20% lower circuit for the second straight day at Rs 65.85 on the BSE, with no buyers were seen on the counter, after Target Corp said it is terminating business as the Indian manufacturer has substituted a type of cotton other than Egyptian cotton to make bedsheets.
Indraprastha Gas Limited (IGL) has moved higher to its all-time high of Rs 781, up 7%, extending its Monday’s 4% gain on the BSE, after the company reported a healthy 44% jump in its June quarter on the back of strong operational performance.
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Updated at 9:35 am
Markets have made a subdued opening tracking mixed trend among global peers with capital goods and pharma shares leading the decline. However, the downside is limited due to renewed buying interest in IT majors.
By 9:35 am, the S&P BSE Sensex was down 22 points at 27,964 and the Nifty50 slipped 9 points to trade at 8,620. Among broader markets, BSE Midcap index is down 0.2% while the Smallcap index is trading flat.
"The 8,700-8,580 remains the near term breakout region. However, push beyond these extremities may not be followed by sustained moves in that direction. Instead, after a 100-150 point move, a new consolidation range could be set. Until then, choppiness should dominate," adds Geojit BNP Paribas in a technical note.
On Monday, markets ended lower after the appointment of Urjit Patel as the new governor of India's central bank whose focus is on taming inflation has lowered the probability of an interest rate cut soon.
In the overseas market, Japan's Nikkei share average slipped on Tuesday, pressured by a stronger yen and slumping oil prices, though trading was thin as investors awaited a US Federal Reserve gathering later this week in Jackson Hole, Wyoming.
Global central bankers will gather for the Fed's annual mountain retreat from Thursday. Fed Chair Janet Yellen is slated to speak on Friday, and could offer clues on the timing of the US central bank's next monetary policy move.
Wall Street ended little changed on Monday, in low volume trade, as investors fretted about the impact of weakening oil prices and the odds of whether the Fed will raise interest rates in the coming months.
Back home, foreign portfolio investors (FPIs) sold shares worth a net Rs 300.50 crore yesterday, as per provisional data released by the stock exchanges.
Moody’s Investors Service on Monday said continued reforms to enhance business environment and moderate inflation would help India achieve robust growth but cautioned that rising contingent liability risks in the banking sector could affect its credit quality.
Aurobindo Pharma and Tata Power Company are scheduled to announce Q1 June 2016 earnings today.
Adani Ports, Infosys, GAIL, Axis Bank and HUL are up 0.2%-1% from the Sensex pack.
Infosys on Monday said it has laid off "a few" people on grounds of non-performance and disciplinary issues but denied reports of 500 jobs being cut by the country's second largest software services company.
GAIL (India) and Silicon Valley-based Bloom Energy signed a memorandum of understanding (MoU) to deploy revolutionary natural gas-based fuel cell technology to generate electricity. Shares of GAIL are up 1%.
On the losing side, NTPC, Hero MotoCorp, L&T, Lupin and Sun Pharma have slipped by nearly 1% each.
ALSO READ: HPCL Q1 net profit up 30% to Rs 2098 crore
NTPC on Monday reported 4% rise in standalone net profit to Rs 2,369.53 crore for the first quarter due to increased power generation and better utilisation of coal-based plants.
HPCL is down over 2% despite posting 30% increase in its net profit for the first quarter (Q1) of the current financial year (FY) to Rs. 2,098.38 crore, against Rs. 1,614.13 crore during the same period of the last FY.
However, HPCL’s average gross refining margin during the quarter ended June 30,2016 was $6.83 per barrel, compared to $8.56 per barrel against Q1 of the previous FY.
