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Markets have made a smart recovery and have turned extremely volatile.
At 10:25, the Sensex was higher by 53 points at 25,635 mark and the Nifty gained by 6 points at 7,630 levels.
The main gainers on the Sensex are Hindalco, Tata Steel, GAIL, ITC, SBI and BHEL.
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Updated at 9:45
Markets have erased early gains and are trading lower weighed down by financials, capital goods and auto shares.
By 9:45, the Sensex was lower by 99 points at 25,483 mark and the Nifty dipped by 36 points at 7,587 levels.
Adds Kunal Bothra, technical analyst, LKP Securities, “There could be chances of recovery today, after yesterday's sharp fall. Generally, bulls would not give away that easily. However, I believe that yesterday's fall has tempered the expectations of Nifty in the near term, and I believe that traders would start to book profits at higher levels, if in case Nifty rises post Union Budget.”
On the sectoral front, BSE Power, Realty and Capital Goods indices have slumped by 2%. Apart from FMCG, all the major BSE sectoral indices are trading in red zone.
The main losers on the Sensex are Tata Power, Sesa Sterlite, Hero Moto, Coal India, M&M, Dr Reddy’s Labs, L&T and Tata Motors.
Railway-related stocks are continued under pressure for the second straight day falling by over 30% in two days on the BSE, following Railway Minister Sadananda Gowda unveiling his maiden Budget.
Today, Texmaco Rail & Engineering, Titagarh Wagons, Kernex Microsystems, Stone India, BEML and Kalindee Rail are down 5-15% on BSE.
The broader markets are witnessing extreme selling pressure- BSE Midcap and Smallcap indices have declined by 2% each.***********************************
Updated at 9:30
Markets are trading extremely choppy in opening trades with the Sensex and the Nifty swinging between negative and positive zone.
Indices lost over 2% yesterday, recording the largest drop in percentage terms since January 27, 2014, as investors turned cautious and booked profits ahead of the Budget session on Thursday.
The Economic Survey will be released today by the Finance Ministry at 12 pm. Finance Minister Arun Jaitley will present the Union Budget for 2014-15 in Lok Sabha.
By 9:30, the Sensex was higher by 28 points at 25,611 mark and the Nifty gained by 3 points at 7,626 levels.
GLOBAL MARKETS
Asian stocks fell on Wednesday after US stocks skidded, while a drop in US Treasury yields kept up pressure on the dollar. MSCI's broadest index of Asia-Pacific shares outside Japan was down about 0.2% in early trade, and Japan's Nikkei stock average dropped about 0.6%.
Traders were awaiting China inflation data at 0130 GMT for further clues on whether the economy is stabilising, ahead of seonc.
On Wall Street, major stock indexes sagged with the Standard & Poor's 500 index shedding 0.7% as investors turned cautious before the start of earnings season.
SECTORS & STOCKS
Stocks witnessed significant selling pressure after the Railway Budget raised worries India would slash spending in the general budget due tomorrow.
BSE Capital Goods, Realty, Power, Oil & Gas and Consumer Durables indices have gained by nearly 1% each. Apart from Auto, all the major BSE sectoral indices are trading in positive zone.
The main gainers on the Sensex are BHEL, L&T, GAIL, ONGC, Sun Pharma, Infosys and RIL.
On the losing side, Sesa Sterlite, Tata Motors, Bajaj Auto, Dr Reddy’s Labs and Axis Bank have gained by nearly 1% each.
Among other shares, railway related shares continue to extend yesterday's losses. Texmaco, Kalindee and BEML are down over 4%.
Multi Commodity Exchange of India (MCX) and Financial Technologies (India) have gain more than 3% each on BSE after ace investor Rakesh Jhunjhunwala on Tuesday purchased nearly two percent stake in commodity bourse for over Rs 66 crore.
The broader markets are trading mixed- BSE Midcap index has gained by 0.3% whereas BSE Smallcap index is trading marginally lower.
The market breadth in BSE remains neutral with 118 shares advancing and 649 shares declining.
