 "Nifty opens below 7,700 on mixed global cues")
Markets have trimmed losses and are trading flat led by rally in Index heavyweights with RIL and Tata Motors contributing the most to the gains.
Rating agency ICRA Monday projected Indian economic growth to improve to 7.7%in next fiscal, led by domestic consumption demand on the back of implementation of 7th Pay Commission and OROP recommendations.
At 10:45 am, the S&P BSE Sensex is 9 points down at 25,276 and the Nifty50 is 5 points down at 7,700.
SECTORS IN FOCUS
Tea stocks are trading higher with Rossell India, Williamson Magor & Company, Mcleod Russel India, Jay Shree Tea, Tata Global Beverages and Bombay up between 2%-11% on the BSE. According to media reports, the support extended by leading blenders at Kochi auctions lifted the prices of some tea varieties, especially good liquoring tea this week. This particular variety in the dust category was dearer by Rs 5 to Rs 7 (particularly, the powdery types), as the sale progressed. Prices of medium and plainer varieties also witnessed an upward movement by Rs 2 to Rs 5. The quantity on offer in CTC dust was 9,68,500 kg and there was a strong demand in sale no 12 with 96% of the offer getting sold.
Defence Minister Manohar Parrikar announced on Monday the clearance of the long anticipated Defence Procurement Policy of 2016 (DPP-2016). This will replace the current DPP-2013, and govern all defence acquisitions initiated after April 2. He said the new policy would be accessible on the defence ministry's website with effect from March 28. Pipavav Defense, Reliance Defense and Engineering, BEML, BEL, Astra Microwave Products, L&T trading higher up to 5%.
STOCKS IN NEWS
Indoco Remedies has rallied 19% to Rs 314 on the National Stock Exchange (NSE) after the company received US Food and Drug Administration (USFDA) approval for Goa solid dosages plant.
Himachal Futuristic Communications surges 15 per cent to Rs. 16.45 after the company said that it has got licenses for manufacturing electronic fuses, electro optical devices and communication equipments from defence ministry.
Top 5 gainers in the Sensex pack include BHEL, m&m, Tata Motors, Maruti Suzuki and Lupin up 1.5%-4%. On the flip side, Adani Ports, Dr Reddy’s Lab, Bharti Airtel, Hero Motocorp and ITC have shed 1%-2%.
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(updated at 9:15 am)
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(updated at 9:15 am)
Markets have opened the session on a flat-to-negative note mirroring weakness in the Asian peers following a flat finish in the Wall Street.
At 9:15 am, the S&P BSE Sensex is 81 points down at 25,205 and the Nifty50 is 29 points down at 7,676. In the broader market, BSE Midcap and Smallcap indices are outperforming the landmarks and are up 0.4%.
“The Nifty has reached yet another landmark of 7,700 within no time. As of now, we do not see any weakness on charts and thus, we reiterate our view that traders shouldn't pre-empt any reversal until we see any definite signal. One can adopt a cautious approach if Nifty reaches 7,750 – 7,780 zone by booking timely profits or trailing stop losses; but, shorting is strictly avoided in such kind of strong optimism. On the downside, 7,600 would now be seen as a strong support. Meanwhile, individual stocks are giving good moves and thus, traders should focus on such potential trades,” according to Angel Broking morning note.
GLOBAL MARKET
Asian stocks slipped on Tuesday as hawkish comments from U.S. Federal Reserve officials clouded the monetary policy outlook less than a week after Fed Chair Janet Yellen had set out a more cautious path to interest rate increases this year.
The dollar got a mild boost from the suggestion that interest rate hikes could be on the way sooner rather than later.
Japan's Nikkei stock index added 2.1%, reopening after a public holiday on Monday and getting a tailwind from a weaker yen.
U.S. crude prices dipped after gaining overnight on data showing a drawdown at the Cushing, Oklahoma delivery hub.
Prices fell about 0.3% to $41.40 a barrel after rising 1.19% in the previous session. Brent fell 0.4 percent to $41.36 after settling up 0.8% on Monday.
STOCKS IN FOCUS
Airbus has initiated talks with companies such as Bharat Forge and the forgings arm of Mahindra group to have some of its aircraft parts forged in India. The stock is up 1%.
Defence Minister Manohar Parrikar announced on Monday the clearance of the long anticipated Defence Procurement Policy of 2016 (DPP-2016). This will replace the current DPP-2013, and govern all defence acquisitions initiated after April 2. He said the new policy would be accessible on the defence ministry's website with effect from March 28. Pipavav Defense, Reliance Defense and Engineering, BEML, BEL, Astra Microwave Products, L&T trading higher up to 5%.
Himachal Futuristic Communications is entering into the defence equipment manufacturing business, a media report said. The stock has soared 5%.
Bharti Airtel is continuing to monetise its passive infrastructure assets in Africa. The company said on Monday it had entered into an agreement with American Tower Corporation (ATC), through its subsidiary, Airtel Tanzania, to sell 1,350 towers in the latter country. Analysts estimate the deal size to be $180 million.The stock is trading flat.
Film studio Eros International Media Ltd on Monday announced the company's audit committee had completed an internal review, which commenced in November 2015, with the assistance of Skadden Arps Slate Meagher & Flom LLP. Eros Media is trading higher by 3.5%.
NTPC's installed capacity has increased to 45,798 MW after commissioning of a 250 MW Unit-I of its arm at Nabinagar. The stock is up 0.4%.
With Reuters input
