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Benchmark indices turn flat amid weak global cues as losses in technology shares offset gains in auto stocks and capital goods.
At 1.15 PM, the 30-share Sensex has slipped 10 points at 27,878 and the 50-share Nifty has shed 7 points to trade at 8,389.
In the broader market, both the BSE Midcap and Smallcap indices have performed better than the front-liners with gains of around 0.5% each. Market breadth on the BSE remains firm with 1,528 advances against 1,183 declines.
Meanwhile, foreign institutional investors were net buyers in equities to the tune of Rs 260 crore on Friday, as per provisional data released by the Bombay Stock Exchange.
Rupee:
The Indian rupee was trading lower at Rs 63.34 compared to its Friday close of Rs 63.30 due to rise in the greenback’s value against other currencies overseas.
Key Stocks:
On the sectoral front, BSE Auto index is the top gainer up 1.3% followed by Consumer Durables and Capital Goods indices up 1.2% each. However, BSE Power and IT indices asre trading with marginal losses and are down 0.2% each.
Capital Goods stocks have gained on robust PMI data for the month of December which was at its highest since end-2012. Larsen and Toubro has gained around 2% after the company said it has won orders worth of Rs 4,006 crore in the month of December 2014. Also, Citi upgraded L&T stock to buy from neutral citing an expected turn around in the company's defence manufacturing business on the back of large defence orders the company has received. The stock is up 2%.
Auto stocks have started the week on a robust note as the release of sales volume data for the month of December has commenced. Tata Motors has gained around 1%. On Friday, Tata Motors reported a 10% increase in total sales at 41,734 units in December, as against 37,836 units in the same month last year.
Maruti Suzuki has gained around 2.7%. The company reported 21% growth in sales during December 2014 compared to the same month last year. Also, CLSA has retained Maruti Suzuki as top auto pick in 2015 citing new products, improvements in pricing and large margin expansion of yen among other factors which are likely to help the company to reap larger profits in 2015.
Among other auto stocks, Hero Motocorp, Bajaj Auto and M&M have gained 1% each.
Financials are trading mixed post the two-day banking retreat. ICICI Bank and Axis Bank have gained 0.6% and 0.4% each. Morgan Stanley maintains an "overweight" on Axis Bank.
HDFC twins have shed between 0.7-1.2% and SBI is lower by 0.5%. In a release to BSE, SBI has said that United Forum of Bank Unions (UFBU) has given a notice to Indian Banks'' Association calling for nationwide Bank strike, on the 7th and 21st to 24th January 2015. Since the call is for nationwide all-Banks strike, the SBI will not be separately impacted, if the strike materialises.
U.S. crude and Brent futures drop to fresh 5-1/2-year lows as worries about a surplus of global supplies amid weak demand continues to drag on oil markets. HPCL and IOC shares rise nearly 1 percent; OMCs remain beneficiaries of rising oil demand in India. However, RIL is trading with marginal losses.
Infosys is trading flat with a negative bias on caution as the company reports Dec-quarter earnings on Friday.
Dr Reddy’s Lab, Bharti Airtel and BHEL are some of the notable losers on the Sensex and are down between 1-2%.
Across the Globe:
Asian stocks were mixed amid choppy trade on the first trading day of the week, as a raft of sluggish manufacturing surveys released across Europe and Asia over the past week curbed risk appetites. Japan’s Nikkei and Hang Seng indices are lower by 0.2% and 0.1% each, However, China’s Shanghai Composite is up 3.6%.
The euro hit a nearly nine-year low versus the dollar on Monday as investors bet on quantitative easing by the European Central Bank while soft manufacturing surveys pushed down shares and sent oil prices to 5 1/2-year lows.
European shares are expected to dip, with Britain's FTSE seen falling by up to 0.3%.
