Nifty holds 8,500 amid rangebound trade; TCS up 1%

IT shares were among the top gainers led by TCS ahead of its first quarter earnings later today

Markets remained rangebound while IT shares gathered pace with TCS leading the gains ahead of its first quarter earnings.

At 1:40pm, the S&P BSE Sensex was up 8 points at 27,816 and the Nifty50 was down 7 points at 8,514.

IT shares emerged as the top gainers led by TCS which rose over 1% ahead of its first quarter earnings tomorrow while Infosys was up nearly 1%.

ONGC was up nearly 4% as the proposed hike by 25 paise a month till August 2017 by the government would help the company save substantially on subsidies. Oil India was up over 3%.
 
Among other shares, Financial Technologies India was down over 6% after Jignesh Shah, the founder was arrested by the Enforcement Directorate (ED) under the Prevention of Money Laundering Act for non-cooperation in the investigation. This follows a fresh complaint by Member of Parliament Kirit Somaiya and reportedly a presentation made by the NSEL Investors Forum to the ED.
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(updated at 11:40am)
Amid a divergent trend among various index constituents, the Nifty 50 index traded near the flat line and the barometer index, the S&P BSE Sensex, traded with tiny gains.

At 11:40 am, the Sensex was down 26 points at 27,781. The Nifty was currently down 15 points at 8,506.

The Sensex gained 120.62 points or 0.43% at the day's high of 27,928.76 at the onset of trading session, its highest level since 20 August 2015. The barometer index rose 9.88 points or 0.04% at the day's low of 27,818.02 in morning trade. The Nifty gained 29.20 points or 0.34% at the day's high of 8,550.25 at onset of trading day, its highest level since 11 August 2015. The index fell 8.30 points or 0.1% at the day's low of 8,512.75 in morning trade.

In overseas stock markets, most Asian stocks rose, adding to the gains in the past few sessions amid improved risk appetite following the positive lead overnight from Wall Street. US stocks edged higher yesterday, 12 July 2016, with Dow Jones Industrial Average and the S&P 500 index, both, finishing at record high, reflecting hopes about stimulus from Japan and China along with optimism that the Bank of England will lower rates to help the UK economy sidestep the pitfalls of the so-called Brexit.

Closer home, the BSE Mid-Cap and BSE Small-Cap slipped nearly 1% each. Both these indices underperformed the Sensex.

Metal and mining stocks edged higher as copper prices rose in global commodity markets. Tata Steel (up 2.6%), Steel Authority of India (Sail) (up 2.93%), Hindalco Industries (up 2.73%), National Aluminium Company (up 1.6%), Jindal Steel & Power (up 2.01%), NMDC (up 2.07%), Hindustan Copper (up 6.65%) edged higher.

High Grade Copper for September 2016 delivery was currently up 2.19% at $2.2615 per pound on the COMEX.

JSW Steel rose 1.12% to Rs 1,559.05. The stock hit a high of Rs 1,560 in intraday trade, a record high for the counter. The stock hit low of Rs 1,524.95 in intraday trade.

Vedanta jumped 8.71% to Rs 173.40. The stock hit a high of Rs 174.60 in intraday trade, also its 52-week high. The stock hit low of Rs 159.55 in intraday trade.

Hindustan Zinc rose 2.87% to Rs 200.90. The stock hit a high of Rs 203.30 in intraday trade, a record high for the counter. The stock hit low of Rs 195.80 in intraday trade.

Telecom stocks fell. Bharti Airtel (down 0.32%), MTNL (down 0.67%), Tata Teleservices (Maharashtra) (down 2.49%) and Reliance Communications (down 0.58%) declined. Idea Cellular rose 0.53%.

Shares of Bharti Infratel fell 0.88%. Bharti Infratel is a provider of tower and related infrastructure and is a unit of Bharti Airtel.

On the macro front, data released by government after market hours yesterday, 12 July 2016, showed that India's industrial production increased 1.2% in May 2016 over May 2015, while snapping 1.35% dip recorded in the previous month. The manufacturing sector production rebounded 0.7%, after two months of decline, contributing to the rise in industrial output in May 2016.

Another data released by government after market hours yesterday, 12 July 2016, showed that the all-India general consumer price index (CPI) inflation accelerated to 5.77% in June 2016 from 5.76% in May 2016. Increase in food price was responsible for the acceleration in consumer price inflation. The consumer food price index rose to 7.79% in June 2016 from 7.47% in May 2016. The core CPI inflation fell to 4.39% in June 2016 from 4.49% in May 2016.

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