 "Metal shares perk up in a flat market; Nifty holds 7,800")
Benchmark share indices continued to trade flat in noon trades on Tuesday as gains in defensives helped offset losses in financials even as metal shares emerged as the top gainers.
At 1:15pm, the 30-share Sensex was up 52 points at 25,812and the 50-share Nifty was up 9 points at 7,816.
The broader market was mixed with BSE Midcap index was down 0.1% while Smallcap index gained 0.2%. Market breadth was marginally positive with 1,229 gainers and 1173 losers on the BSE.
"Weak corporate earnings in the second quarter continue to weigh on sentiment and investors are in a wait-and-watch mode ahead of the winter session of the Parliament in addition to global cues," says Mayuresh Joshi, Fund Manager, Angel Broking.
The rupee pared early gains and was trading marginally lower at 66.03 to the US dollar compared to the previous close of Rs 66. The rupee had firmed up in early trades after India’s trade deficit narrowed down to 8-month low owing to dropping international crude oil prices.
MACRO-ECONOMIC DATA
General wholesale prices fell in October for 12th month in a row by 3.81 per cent, official data released on Monday show. It was back in 1975-76 that there was Wholesale Price Index (WPI)-based deflation for a full year. It was in October 2014 that inflation was last seen, at 1.66 per cent.
The country's merchandise exports shrank 17.53 percent in October from a year ago to $21.35 billion, government data showed on Monday, on weak global demand.
The trade deficit marginally narrowed to $9.77 billion last month from $10.48 billion in September, the data released by the Ministry of Commerce and Industry showed. It was $13.5 billion in October 2014.
SECTORS & STOCKS
BSE FMCG index was the top gainer up 1.7% followed by Metal and Healthcare indices. IT, Bankex and Consumer Durables indices were the top losers.
ICICI Bank was marginally down. The private banking major decided to sell a six per cent stake in its life insurance venture, ICICI Prudential Life Insurance, to Premji Invest and its affiliates, and Compassvale Investments Pte, a unit of Singapore-based Temasek, for Rs 1,950 crore. Further, Axis Bank, SBI and HDFC Bank were down 0.2-1.4% each.
Infosys was down 2.5% after the IT major warned of weaker margins in the December quarter and the second half of the current financial year, weighed down mainly by lower spending by top clients due to the holiday season.
The large telecom operators have decided to spend Rs 34,000 crore in the current financial year to roll out fourth-generation technology (4G) networks and boost their existing one, to address call drops. RCom, Bharti Airtel and Idea Cellular have dropped 0.2-0.9% each.
Reliance Infrastructure was down nearly 2%. The company said it would commence the Rs 1,263 crore open offer to acquire additional 26 per cent stake in Pipavav Defence and Offshore Engineering Company on December 2.
Maruti Suzuki is trading marginally down. Haryana Industries Minister Captain Abhimanyu after meeting MD & CEO Kenichi Ayukawa suggested that Maruti Suzuki should set up a skill development centre and driving school in the state.
Coal India was up 0.3%. The company has imported about five lakh tonnes of coal so far in the current fiscal for the power producers as their response has not been encouraging. Coal India is trading with marginal gains.
Sugar stocks are trading higher after media reports stated that the government is planning to offer a subsidy ofRs 1,200 crore to farmers. Dhampur Sugar Mills, Shree Renuka, Bajaj Hindusthan, EID Parry India, Mawana Sugars, Uttam Sugar Mills, Oudh Sugar Mills down 1-9% each.
Among other shares, Shares of Niraj Cement were up nearly 3% at Rs 22.50 on the Bombay Stock Exchange (BSE) after the company announced that it has received a road project worth Rs 20.36 crore.
Shares of Ajanta Pharma were up nearly 2% at Rs 1,358 on the Bombay Stock Exchange, after the company said announced the launch of Montelukast Sodium oral granules (4mg), a bioequivalent generic version of SINGULAIR Granules, in the US market.
Shares of Mumbai-based real estate developer D B Realty and drug maker Dishman Pharmaceuticals and Chemicals have tanked up to 20% on the BSE on back of heavy volumes in noon deal trade.
