Markets trim gains

Bajaj Auto top Sensex loser, down over 2%

Benchmark share indices came off their day’s high amid selling pressure in Bajaj Auto and software major TCS. At 1145 hrs, Sensex was up 66 points at 17,170 after touching an intra-day high of 17,236 and the 50-share Nifty gained 16 points at 5,213.

Meanwhile, the rupee gained 43 paise to trade at 54.88 against the dollar in early trade today at the Interbank Foreign Exchange as the American currency weakened against euro and other currencies overseas.

On the global front, Asian shares surged and the euro recovered on Tuesday as investors covered short positions and hunted for bargains while awaiting U.S. Federal Reserve Chairman Ben Bernanke's view on the U.S. economy expected later in the day. Nikkei, Strait Times, Hang Seng, Taiwan, Kospi and Shanghai have gained between 0.3-2%.

Back home, BSE Healthcare and FMCG indices have surged by almost 1%. However, BSE IT index has tumbled by almost 1%.

Shares of pharmaceutical companies continue to be on a roll on the bourses with most of them trading higher. Dr Reddy’s Lab, Sun Pharma and Cipla have gained between 1-2%.

According to Barclays Research, the Indian Pharma sector, will post a 28% top-line and 44% EBIT (earnings before interest and depreciation) growth in the first quarter of fiscal 2013, on the back of continued revenue momentum in the US, new product launches and a resurgent domestic Indian market.

From the FMCG segment, ITC has gained by nearly 1%. HUL is marginally up.

Bharti Airtel is trading higher by over 2% at Rs 327, extending its previous day’s around 4% rally ahead of Empowered Group of Ministers (EGoM) meeting on tomorrow to decide on which prices to charge for 2G radio airwaves at an upcoming auction.

From the banking and financial space, ICICI Bank, HDFC and SBI have gained by almost 1% each.

On the losing side, Bajaj Auto is the top Sensex loser, down over 2%. TCS has declined by over 2%.

Among individual shares, Swelect Energy Systems (formerly Numeric Power Systems) has tanked 49%, or Rs 137, to Rs 145 after the stock turned ex-dividend today.

Thirumalai Chemicals has soared 20% to Rs 102.30, extending its past two days rally after reporting a strong set of numbers for the quarter ended June 2012.

The broader indices, the BSE Mid-cap and Small-cap are trading flat.