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Markets have recouped intra-day losses with the Nifty reclaiming 8,000 level led by gains in FMCG majors ITC and Hindustan Unilever. However, caution is seen ahead of SC verdict on coal-block allocation later today and expiry of September derivative contracts tomorrow.
At 11.30 Hrs, Sensex is trading at 26,788 with a gain of 13 points. Nifty is at 8,020 with 2 points gain.
After outperforming market for a month till September, 22, BSE Mid-Cap and Small Cap are trading lower than Sensex with a loss of 1.5% and 1.7% respectively.
Market breadth is weak with 683 advances against 1,618 declines.
The Rupee is trading at 60.99 against US Dolla. Following US air strikes on Syria,search for a hedge against increased Geo-political risks boosted US dollar. It is tradig close to its peak in the last four years against a basket of currencies.
Asian Markets:
Geo-political concerns weighed heavily on Japanese stocks as US getting ensnarled in Syria whetted investors' appetite for safe havens.
Nikkei has lost 62 points or 0.4% while Singapore Strait Times is trading flat losing 2 points.
However, trends in other Asian markets are mixed. Shanghai Composite added 33 points or 1.4% so did Hang Seng with a gain of 100 points or 0.4%.
Sector and Stocks:
Ahead of SC verdict on coal block allocation interest in Coal India stocks increased. It is trading with a gain of 1.7%.
Due to investors reduced risk appetite, FMCG is the only sector in green. Biggest gainers are HUL and Nestle posting around 2% gains. Possibility of goverment selling its stake in ITC through Specified Undertaking of UTI (SUUTI) gave its stocks a gain of 1.2%.
IT stocks continued their bull run in a defensive market with the exception of TCS which posted a loss of around 1%. Biggest gainer is Wipro with nearly 2% gain followed by Tech Mahinra with a gain of 1%.
Mahindra and Mahindra has gained 1% as the fall in its stock prices precipitated by a rating downgrade made its stocks attractive.
After heavy buying for two days, Capital Goods sector is under pressure losing 2% in late morning trades.Though in this sector, shares of Thermax, a Pune based capital goods manufacturer has surged more than 4% to Rs 926 on the BSE after it received an export order from a US based company. Infra major Larsen and BHEL both have lost around 2%
Other stocks to look for are JSW Energy which is up on environment clearance to increase the annual mining of Kapurdi Lignite Mines and Manappuram Finance which gained on nod for diversification.
Metal stocks are witnessing pressure ahead of SC verdict on coal block allocation.Other Inhibiting factors include weak demand - given reduced pace of growth in China, dip in second quarter Japan's GDP and weak industrial data from India - and depressed raw material prices due to over-supply.
Tata Steel has lost 1.7%, Sesa Sterlite 0.7% and Hindalco 0.6%.
Stocks of Oracle Finance are down on turning ex-dividend and Sasken Communication Technologies is down following resignation by whole time diector and CEO.
