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Markets are once again trading higher amid choppy trades led by strong buying among IT shares. However, the upside has been capped because of selling among index heavyweight shares like HDFC and ITC.
By 11:05AM, the 30-share Sensex was higher by 108 points at 27,566 and the 50-share Nifty has gained 24 points at 8,366.
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Updated at 10:40
Markets have erased early gains and have turned absolutely choppy with Sensex and Nifty swinging between negative and positive zone.
By 10:40AM, the 30-share Sensex was higher by 12 points at 27,469 and the 50-share Nifty has slipped 2 points at 8,341.
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Updated at 10:28
Benchmark indices continue to trade in a narrow range with positive bias led by information technology shares. However, the upside has been capped on account of selling in defensive counters like pharma and FMCG.
By 10:28AM, the 30-share Sensex was higher by 65 points at 27,523 and the 50-share Nifty has gained 14 points at 8,356.
Among broader markets, BSE Midcap and Smallcap indices are up 0.1-0.4%. Market breadth is strong with 1,067 gainers and 869 losers on the BSE.
"Market is likely to trade higher due to new series. Minor profit booking by noon is expected. For the Sensex, resistance is at 27,660 above 27,684 and 27,905. Support is at 27,461 below 27,400 and 27,385. For the Nifty resistance is at 8,384 above 8,415 and 8,482. Support is at 8,331 below 8,325 and more." Geojit BNP Paribas Financial Services said in a technical note.
ASIAN MARKETS
Asian stocks were mixed on Friday as rising tensions in the Middle East obscured the investment outlook, while the dollar rebounded.
Crude oil prices were lower due to the dollar's bounce and as the market reassessed the potential impact of the escalating conflict in Yemen, where Saudi Arabia and allies carried out air strikes on Iranian-backed Houthi rebels on Thursday.
The gainers included Australian and Indonesian shares. Helped by the weaker yen, Japan's Nikkei rose 0.5% after a loss of 1.4% on Thursday.
SECTORS & STOCKS
BSE IT index has surged almost 2% followed by counters like Metal, TECk and Capital Goods, all gaining by 1% each. However, defensive counters like FMCG and Healthcare are trading lower by nearly 1% each.
Shares of information technology (IT) companies are trading higher by up to 3% on the National Stock Exchange (NSE) in early morning trade after Accenture Plc raised its full-year revenue growth forecast.
Tata Consultancy Services (TCS), Infosys, Hexaware Technologies, Wipro and Tech Mahindra were trading higher between 1% and 3% on the NSE.
Further, offshore Infosys employees would get an average pay rise of around 6.5% this year, while high performers could get as much as 9%, according to sources.
Other notable gainers are Hindalco, Sesa Sterlite, L&T, Tata Motors and ONGC. Oil and Natural Gas Corporation (ONGC) hit 52-week yesterday.
Tata Motors, India’s biggest automobile maker, has secured its board of directors’ approval for a Rs 7,500-crore rights issue, to fund ongoing and future activities.
On the losing side, Dr Reddy’s Labs, Hero Moto, Bharti Airtel, ITC and Sun Pharma are down 1-2%.
Bajaj Auto has slipped by over 1%. The company has launched the Pulsar RS 200 bike, priced at Rs 1,18,500 and Rs 1,30,268 for the non ABS and ABS versions respectively, ex-showroom Maharashtra.
Mahindra & Mahindra has expressed an interest in buying car designer Pininfarina but no deal has been reached yet, the Italian company confirmed on Thursday. The stock is down over 1%.
Telecom shares are in focus following the end of the spectrum auction. Idea Cellular won back crucial 900MHz spectrum across 9 service areas which contribute 73% to the revenue.
Further, Idea Cellular and YES Bank will replace DLF and Jindal Steel & Power as constituents in the 50-unit CNX Nifty index today.
Idea Cellular and Bharti Airtel are down over 1% after making a higher opening.
DLF has slumped over 2%. YES Bank has slipped marginally. However, Jindal Steel has surged over 5%.
