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Markets have turned choppy in the noon deals as investors remain cautious on a sharp spike in bond yields in developed markets amid FII sell-off. Also, the sentiment is dampened by the government's inability to bring reforms coupled with concerns surrounding debt-ridden Greece.
Gains in financials and select auto stocks offset losses in metal shares and Index heavyweights including RIL, TCS and Infosys.
At 12.05 PM, the Sensex is up 13 points at 26,891 and the Nifty has gained 6 points at 8,133 mark.
At 12.05 PM, the Sensex is up 13 points at 26,891 and the Nifty has gained 6 points at 8,133 mark.
Further, HSBC downgraded Indian stocks to "underweight" from "overweight", citing slowing earnings growth, little room for rate cuts and potential negative impact from an unusual weather due to El Nino.
The retail inflation softened further to a four-month low of 4.87 per cent in April compared to 5.25 per cent in March. In contrast, factory output growth slowed to a five-month low of 2.1 per cent in March as against 5 per cent registered in February which could push the Reserve Bank of India (RBI) to slash key interest rates.
Foreign investors were net sellers in equities to the tune of Rs 1,329 crore on Tuesday, as per provisional stock exchange data.
RUPEE
The rupee strengthened by 9 paise at 64.08 against the US dollar on Wednesday at the Interbank Foreign Exchange on fresh selling of the American currency by exporters.
KEY STOCKS
On the sectoral front, BSE Metal, Realty, Oil & Gas and Power indices are trading lower up to 1%. However, BSE Auto, Bankex and Capital Goods indices are trading higher up to 1%.
Shares of NTPC and Indian Oil Corporation (IOC) have fallen by up to 5% on the bourses after media reports suggested that the cabinet committee on economic affairs (CCEA) approved the stake sale in these two companies.
Shares of Hindalco have dropped over 3% to Rs 134 on the BSE in an otherwise firm market after the quarterly earning of its subsidiary Novelis missed expectations as the adjusted EBITDA for the fourth quarter of fiscal 2015 quoted at $201 million compared to the $250 million reported for the corresponding period last year . Among other stocks, Vedanta and Coal India are down up to 1.5%.
Shares of Gas Authorities of India Limited (GAIL India) jumped as much as 3% on reports that GAIL India is in talks to acquire Dabhol's 5 million tonne per annum regasification terminal.
Mahindra & Mahindra shares gained over 2% on reports of the carmaker's plans to launch a new variant of its sports utility vehicle XUV500.
Rate sensitive shares were trading higher by up to 3% on the bourses in the early morning trade after the Consumer Price Index (CPI)-based inflation fell to a four-month low in April and is likely to increase the clamour for the Reserve Bank of India (RBI) to cut interest rates in its next monetary policy.
Axis Bank, HDFC twins, ICICI Bank, SBI, M&M, Hero Motocorp are trading higher up to 2%.
L&T has gained up to 1% on media reports stating that L&T and Hyundai Heavy Industries have signed a Memorandum of Understanding to enable participation in expected GAIL tender for LNG carrier. This is in anticipation of a possible retendering by GAIL to invite bids from potential ship owners for chartering of LNG carriers.
In the broader market, BSE Midacp and Smallcap indices are up 0.7% and are outperforming the large counterparts.
The market breadth on the BSE is strong with 1,270 advances versus 1,017 declines.
