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Infosys impressive Q2 results has kept benchmark indices tethered though weakness persists in early noon trades amid concerns about global economic recovery which led to massive sell off at Wall Street and decline in Asian markets.
Meanwhile, today the government will release Index of Industrial Production data for August. August IIP is expected to grow 2.4% compared with 0.5% in July.
At 11.30 Am, Sensex is trading at 26,374 with a loss of 260 points while Nifty is at 7,833 with a loss of 77 points.
In the broader market, BSE Mid Cap and Small Cap index are trading with a loss around 0.8%.
Market breadth is weak with almost two decline for every advance.
Rupee is trading at 61.17 compared to earlier close of 61.04 against US Dollar.
Asian Markets
Asian stocks tracked overnight losses on wall Street as weak August export data from Germany raised concerns that the global economic growth is still struggling. Crude oil prices also fell to two-year lows as demand for the commodity is likely to remain sluggish amid global economic growth concerns. Shares in Japan were trading lower with the benchmark Nikkei down 1% while shares in Hong Kong were trading 1.6% lower. Straits Times was down 0.9% and Shanghai Composite was down 0.8%.
US stocks slumped on Thursday and the S&P 500 recorded its highest percentage fall in six months amid global growth concerns. Discouraging exports and industrial production from Germany, Europe's largest economy, also dampened sentiment.
Sectors and Shares
Except BSE IT and Teck Sector with around 2% advance and BSE Reality which is flat all other secotrs are posting losses.
Infosys is the biggest gainer surging around 6%.The country’s second largest IT firm in terms of market value had profit of Rs 2,886 crore in June 2014 quarter. Total consolidated revenues, grew 4.5% to Rs 13,342 crore in the September quarter, as against Rs 12,770 crore in the June quarter, Infosys said in a statement.
Infosys announced that its board recommended a bonus issue of one equity share for every equity share held, and a bonus issue, viz., a stock dividend of one American Depositary Share (ADS) for every ADS held.
Among other IT majors, TCS and Wipro are trading flat.
Profit booking has kept bank shares under pressure. ICICI, HDFC, Axis and SBI have lost between 1% to 2%.
After gaining in a bullish market, pharma shares are subdued.Cipla and Sun Pharma have lost 1.2-1.4% each while Dr Reddys lab is gaining 0.3%.
BHEL has continued to benefit after bagging Ennore supercritical power project. It is gaining around 1.5%.
Tata group shares are under pressure. Tata motors and Tata Steel have lost more than 3%.
Among other stocks,Shares of oil marketing companies,BPCL and HPCL have gained around 1.3 on back of Brent crude prices dipping below $90 a barrel.
Apollo Tyres has moved higher by 4% to Rs 224, also its new high on National Stock Exchange (NSE), extending its past three day’s rally, after the Reserve Bank of India (RBI) said foreign investors can now buy up to 45% stake in the tyre manufacturer.
T D Power Systems has surged 18% to Rs 396 after HDFC Mutual Fund acquired additional stake in the company through open market transaction.
