 "Nifty opens below 7,750 on weak global cues")
Markets continue to remain weak in a narrow range weighed down by metal and select financial shares. However, the downside is limited due to buying demand among index heavyweights like Tata Motors, Infosys and ITC.
At 11:30 am, the Sensex was at 25,435, down by 95 while the Nifty was at 7,743, down by 23 points.
Vedanta, Hindalco, ONGC, GAIL and Dr Reddy’s Labs are top five Sensex losers. On the gaining side, Tata Motots, ITC, Infosys, Bajaj Auto and TCS are up 1-2%.
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Updated at 10:30 am
Markets have pared some of its losses in late morning trades mainly on the back of gains in index heavyweights such as Infosys and Tata Motors. However, the slump in metal, energy and oil&gas shares amid an international rout in crude oil prices has kept the pressure on markets.
At 10:30 AM, the Sensex was at 25,484, down by 45 while the Nifty was at 7,756, down by 8 points.
The top gainers on the Sensex are Tata Motors, Infosys, ITC, HUL, and TCS , all up between 0.5-1.5%.
The biggest losers on the Sensex are Dr Reddy’s, Hindalco, Vedanta, ONGC, and Coal India, all down between 2-3% each.
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Updated at 9:30 am
Extending their Monday’s fall, markets commenced the session on a negative note tracking weakness in global markets, which slumped in Tuesday’s trades following a slide in global crude oil prices.
The Asian markets dropped to a near three year low after the crude oil prices nosedived to a seven year low, thus knocking off global energy company shares and commodity currencies.
At 9:30 AM, the Sensex was at 25,474, down by 55 while the Nifty was at 7,750, down by 13 points.
According to a morning note by Anand Rathi Technicals, “It needs to negate the negative pattern of making lower lows by holding above 7,825 levels to witness a bounce back move towards 7,880 and 7,920 zones, while if it fails to sustain 7,750 zones then selling pressure might drag the index towards 7,700 and lower levels. Traders are required to take calculated risk ahead of FOMC meet, Parliament winter session, CPI, IIP and WPI data.”
Meanwhile, the market participants are hopeful to see the crucial Goods and Services Tax (GST) bill get passed in the current winter session of the Parliament. However, the cigarette companies that burnt in yesterday’s trades would remain in focus even today after CEA-led GST panel suggested tobacco products, including cigarettes, will be taxed at 40%. The taxation is over 25% value added tax (VAT) already charged on current products.
OIL PRICES
Global oil benchmark Brent crude futures dropped 5.4% to $40.66 per barrel on Monday, after the Organization of the Petroleum Exporting Countries' (OPEC) policy meeting on Friday ended without an agreement to lower production.
Keeping production at near record levels in an oversupplied market has spooked investors grappling with reduced demand from China, the world's biggest energy consumer. The focus now shifts to China's trade data for November due later in the day.
GLOBAL MARKETS
MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.4%, erasing all the gains made so far this month, with resource-heavy Australian shares leading decline with a fall of 0.9%.
Japan's Nikkei bucked the trend, rising 0.3%, after revised data showed Japan had dodged a recession in the third quarter, with GDP up an annualised 1%, compared to a preliminary reading of a 0.8% fall.
STOCKS IN FOCUS
Following a slump in crude prices, BSE Metal, Energy, and Oil and Gas indices are down between 0.2-1% each.
Vedanta, Hindalco , Coal India have all dropped between 1-2% each.
Oil Marketing Companies (OMCs) BPCL, HPCL, IOC have gained between 0.1-1% each while ONGC, Reliance Industries, Cairn India have all dropped between 1-2.5% each.
Other notable losers are Lupin, Sun Pharma, HDFC, Tata Steel, down between 0.5-1.2% each.
On the flip side, Tata Motors has gained 1% after the November auto sales numbers for JLR showed a jump of 27% year-on-year.
Other stock that has gained is ITC. ITC has gained around 0.5% on account of value buying at attractive levels after the stock had slump nearly 7% in yesterday’s trades.
Infosys will expand operations in Ireland, doubling the number of staff to 500 in three years and setting up its first product-centric research and development (R&D) centre outside India. The stock has gained 0.5%
Among other shares, Jaypee Infratech is up 1.2% after Jaypee Group decided to sell cement arm by March for Rs 19,500 cr
With Reuters input
