Markets trim gains; Defensive shares shine

Renewed buying interest by the FIIs as cooling inflation and progress of monsoons hint for a rate cut by the RBI lifted the sentiments

Markets have trimmed gains as traders become cautious ahead of the September F&O Expiry due on Thursday. However, renewed buying interest by the FIIs as cooling inflation and progress of monsoons hint for a rate cut by the RBI in the forthcoming monetary policy has lifted the sentiments.

Meanwhile, strength in the global peers and European Central Bank’s stance on easing the monetary policy further has bolstered the rally.

At 10:40 AM, the Sensex is up 51 points at 26,244 and the Nifty has gained 10 points to trade at 8.987. In the broader markets, BSE Midcap and Smallcap indices trading higher by 0.3% and 0.6% each. The market breadth is firm on the BSE with 1,259 advanced versus 691 declines.

 

RUPEE

The Indian rupee is trading at 65.55 up by 15 paise following sustained bouts of dollar selling by exporters and banks amid strength in the local equities.

MONSOON

The enhanced activity of the southwest monsoon across several parts of the country for the next three-four days is giving a breather to regions reeling under severe water deficiency, according to the India Meteorological Department (IMD) report.

BUZZING STOCKS

On the sectoral front, BSE IT, Consumer Durables, Healthcare and FMCG indices are trading higher between 0.5-1.5%. However, BSE Bankex, Capital Goods, Metal and Power indices lose sheen and are trading lower between 0.2-0.5%.

IT shares are on a roll after rupee depreciated in the past trading sessions amid global turmoil. TCS, Wipro and Infosys are trading higher between 0.5-2%. TCS gained 0.5% after fixing 1 October 2015 as the record date for the scheme of merger with CMC.

Shares of Infosys are trading higher by almost 2% after the company secured a three-year contract to develop and maintain all global web-based properties of not for profit enterprise TOMS Shoes for an undisclosed sum.

Pharma stocks are also trading higher in today’s trade with Sun Pharma, Dr Reddy’s Lab, Lupin and Cipla are trading hi9gher between 0.2-0.5%.

Tractor maker M&M is trading higher on the back of advancement of monsoons.

Aditya Birla Minerals Ltd (ABML), a subsidiary of Hindalco Industries will sell its closed copper mine in Queensland, Australia, to Lighthouse Minerals Holdings Pty for A$15 million (Rs 70.5 crore) in cash and another A$41.7 million (Rs 196 crore) in rehabilitation bond costs. Hindalco dropped 3.7%.

NTPC is targeting to begin production from Pakri-Barwadih coal block in Jharkhand this year and three more blocks in next two years. However, the stock is down nearly 2%.

Bharti Airtel has moved all its pre-paid subscribers across the country to pay-per-second, ensuring customers pay only for the time they use the network. The stock is down nearly 1%.

The banking shares are trading under pressure in today’s trade. HDFC twins, Axis Bank and ICICI Bank are down between 0.1-0.5%.