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Benchmark indices are trading in a narrow range with Sensex and Nifty swinging between negative and positive zone. Indices have booked profit at higher levels after attaining lifetime high on expectation of growth oriented Budget.
Meanwhile, normal trading resumed at around 1PM in BSE which was closed due to technical issues.
Activity in India's services sector grew at its fastest pace in well over a year in June as new business poured in, adding to signs of a pick-up in the economy even as inflation remains high, a survey showed on Thursday.
The HSBC Services Purchasing Managers' Index, compiled by Markit, jumped to a 17-month high of 54.4 in June from 50.2 in May.
At 14:20PM, the 30-share Sensex was up 20 points at 25,862 and the 50-share Nifty was up 2 points at 7,728.
The broader markets are also trading in a tight range- BSE Midcap and Smallcap indices are down 0.1-0.2%.
The market breadth in BSE remains marginally negative with 1,246 shares declining and 1,019 shares advancing.
EXPERT VIEW
Navneet Daga, Derivative Analyst, KR Choksey Securities says, “Trend is positive, new highs on index with significant build up at 8000 call options and aggressive put writing on OTM puts suggest more gains likely for the index ahead of the key event of budget. Traders should buy OTM calls of 7800 strikes in nifty, keeping downside stop loss levels of 7650 for futures.”
GLOBAL MARKETS
Japanese stocks dropped on Thursday, snapping a three-day winning streak as investors took a breather from recent gains as they awaited the outcome of the U.S. jobs data later in the day.
Toshiba Corp, however, soared on a report that its U.S. subsidiary is expected to win a deal in Bulgaria.The Nikkei share average ended 0.1% lower at 15,348.29.
The broader Topix shed 0.2% to 1,278.59, and the new JPX-Nikkei Index 400 slipped 0.2% to 11,614.45.
INDIAN CURRENCY
The rupee is trading at 59.70 after hitting 59.52, its highest level since June 13 and higher than the previous close of 59.6875/6975 as foreign banks continue to sell dollars on behalf of overseas investors.
SECTORS & BUZZING STOCKS
BSE Auto and Healthcare indices have gained by nearly 1% followed by counters like Capital Goods, Consumer Durables, IT and FMCG, all gaining marginally. However, BSE Realty, Power and Oil & Gas indices have slumped by 1%.
In the auto pack, Tata Motors is the top Sensex gainer, up over 3% on renewed buying. M&M has gained by nearly 2%. M&M's total automobile sales rose 1% to 38,471 units in June 2014 over June 2013.
However, two-wheeler shares which had gained in the previous sessions are witnessing profit taking. Bajaj Auto and Hero MotoCorp are down 2-3% each. Bajaj Auto and Hero MotoCorp have turned ex-dividend.
From the healthcare segment, Sun Pharmaceutical Industries has surged by nearly 2%. The stock touched its record high on NSE in early trades.
Ranbaxy Laboratories too has gained 3.8% to Rs 543, its highest level since November 2012.
Sesa Sterlite has surged by almost 2%. The company is expected to resume production in the country's Goa state in September, a senior official of the company said on Thursday.
Other notable gainers are Wipro, Coal India, TCS, ITC, Cipla and BHEL.
On the losing side, Hindalco, Tata Power, ONGC, HUL, NTPC and RIL have lost between 1-2%.
Among other shares, Bio-Medicine has surged 14% to Rs 56.20 after the company said its board has decided to issue warrants to promoter group at price of Rs 50 per warrant on preferential basis.
Shares of GMR Infrastructure and Jaiprakash Associates have declined more than 4% each after these companies announced that they launched qualified institutional placement (QIP) on July 2.
