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Benchmark indices remain flat in early noon trading with metal shares declining the most on rising concerns over weak global demand.
At 11.30 AM, Sensex is flat at 26,348 while NIfty is at 7,856 with a 8 points loss.
In the broader market, both BSE Mid Cap and Small Cap indices are losing 0.2-0.3% each.
Market breadth is weak with 1343 declines against 1001 advances
The rupee is trading at 61.61 against the US dollar lower compared to previous close of 61.41. The decline is primarily due to concerns about rise in trade deficit.
Asian Market
Japanese stocks fell on weak global cues particularly the massive overnight sell-off at the Wall Street. However, depreciation of Yen allowed the benchmark Nikkei to post some recovery.
The Chinese market remained an exception to the general trend supported by the rise in credit delivery reflected in the lending data provided by the Chinese bank signalling a revival in credit demand. Though, a drop in China's foreign exchange reserves in the third quarter has kept speculations rife.
The Nikkei was down nearly 2% while Hang Seng and Straits Times were down 0.5-1% while Shanghai Composite recouped early losses and was up 0.6%.
Sectors and Stocks
BSE Realty index is the biggest gainer with an advance of around 1.5% following a rebound in DLF while BSE FMCG, Auto and Bankex indices have gained around 0.2% each. On the other hand, BSE Metal and Consumer Durables have lost around 1%.
Among Reality stocks DLF has attracted investors due to cheaper valuation. The stock was up around 6%.
TCS shares are up around 1.6% ahead of its second quarter earnings due later today while other IT majors Wipro and Infosys are down 0.2-0.3% each.
Tata Motors has gained around 1.3%.after the automaker received an order to supply 928 Tata Marcopolo built buses to the State Transport Authorities in South India.
Tata Steel had earlier gained after it signed a memorandum of understanding with the Geneva-based Klesch group for the potential sale of its long products business in Europe and associated distribution activities. Analysts said the division accounted for 25 per cent of Tata Steel’s European operations. However, the stock has pared most of its early gains and is now trading tad lower.
Hero MotoCorp witnessed buying ahead of July-September earnings later today and the stock was up 1.2%.
In the oil and gas space, GAIL was up 1.6%.
ITC gained 0.2% despite the recommendations by an expert committee to increase the space to be dedicated to statutory warnings on cigarette packs and impose ban on sale of loose cigarette sticks.
Pharma stocks have firmed on defensive buying. Sun Pharma and Cipla have gained around 0.6% while Dr Reddys is flat.
HDFC group shares have gained around 0.5-0.6% each.
Among banking stocks, SBI is up around 0.3%. Analysts expect the nation's largest bank to report higher earnings in the Q2 as the new management of the bank is focussed on improving fee income which may expand Q2 income.
Metal stocks continue to languish given contraction in global demand. Sesa Sterlite and Hindalco have lost around 3% each.
Baja Auto is down around 0.5% on the back of mixed second quarter performance.
Reliance is down 1% despite impressive Q2 results. Analysts have raised concerns about company diversification from core businesses of refining and petro to retail and telecom.
Among other stocks, Prestige Estate has gained around 2.7% on the back of strong Q2 performance with its sales and collections rising around 30% compared to the same quarter in the last fiscal.
NIIT Technologies has slipped 3.5% as the company reported a 36% drop in its net profit for the second quarter ended September 30, 2014.
Cyient (formerly Infotech Enterprises) has rallied around 7% after reporting a strong 31.6% sequential growth in consolidated net profit for the second quarter ended September 2014.
