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Markets have slipped in the negative territory weighed down by Index heavyweights including ICICI Bank, Tata Motors and RIL. Domestic sentiment is dampened as investors remain wary ahead of the Union Budget due to be presented on February 28.
At 11.10 AM, the 30-share Sensex is down 33 points at 28,945, whereas the 50-share Nifty is down 9 points at 8,745.
ONGC, Tata Steel, Tata Motors, RIL, ICICI Bank, Tata Power and Sesa Sterlite are down between 1-2.5% on the BSE.
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(updated at 11.10 AM)
Benchmark indices continue to trade with marginal gains as investors remain wary ahead of the Union Budget due to be presented on February 28.(updated at 11.10 AM)
Traders will keep an eye on the Railway Budget due on February 26 and annual economic outlook survey due on February 27.
At 10.40 AM, the 30-share Sensex is up 50 points at 29,025, whereas the 50-share Nifty is up 14 points at 8,769.
Only days before the 2015-16 Budget, global ratings agency Standard and Poor’s (S&P) said the government must deliver on its reform promises, as low income levels and weak fiscal indicators were constraining the sovereign’s credit worthiness compared to its peers.
In the broader market, BSE Midcap index is trading flat while BSE Smallcap index is trading in line with the large counterparts and is down 0.2%. Market breadth is weak on the BSE with 1,092 declines against 1,018 advances.
Foreign institutional investors (FIIs) were net buyers in Indian equities to the tune of Rs 602 crore on Monday, as per provisional stock exchange data.
RUPEE
The rupee strengthened by 6 paise to 62.25 against the dollar in early trade on Tuesday at the Interbank Foreign Exchange on fresh selling of the US currency by exporters and banks.
SECTORS & STOCKS
On the sectoral front, BSE FMCG and Realty indices are leading the rally up over 1% each followed by Capital Goods, IT, Teck indices up over 0.5% each. However, BSE Auto, Bankex, Metal and Oil & Gas indices are losing sheen and are down 0.5% each.
ITC Hotels, India's second largest hotel chain, has emerged as the highest bidder for Goa-based Park Hyatt property, which was put on the block by IFCI. But the original owners allege the property is being sold at a throwaway price. The stock is trading 1.4% higher.
A smart rally is evident in the capital goods sector on expectations that the government will increase infrastructure spending and announce incentives to the manufacturing sector to boost growth. L&T surged nearly 1.4%.
Indian pharmaceutical company, Cipla has been awarded US$188.95 million of the Global Fund Tender for anti-retroviral (ARV) drugs. The stock has climbed 1%.
Infosys is evaluating a dozen more startups after acquiring an automation startup Panaya for Rs 1,200 crore with an aim of gaining cutting-edge technology such as automation and artificial intelligence (AI). The stock is up 1%.
Car market leader Maruti Suzuki today launched refreshed version of its popular compact sedan Dzire with introductory prices ranging from Rs 5.07 lakh to Rs 7.81 lakh. The stock is up 0.8%.
Boosting the prospects of Uttar Pradesh Chief Minister Akhilesh Yadav’s promise of providing adequate power supply by 2016-17, NTPC Limited has said it will supply an additional 1,657 Megawatt (Mw) to the state in two years. The stock is up 0.3%.
State-owned Coal India (CIL) is gearing up to invest about Rs 6,000 crore towards capital expenditure in the next fiscal and an equal amount on augmenting other infrastructure, including rail connectivity. Stock climbed nearly 0.8%.
Hindalco has gained 0.2%. Last week, Hindalco won the Gare Palma IV/4 coal block in Chhatisgarh for Rs 3,001 per tonne, according to the results of e-Auction for Schedule II coal mines announced by the Ministry of Coal on Friday, 20 February 2015.
Other notable gainers include Wipro, HUL, HDFC and TCS up between 0.5-1%.
On the flip side, RIL has lost 0.7%. The stock had lost close to 3% in the last session over the corporate espionage controversy.
State Bank of India (SBI), the country's largest lender, wants the government to increase the upper limit for interest subvention (subsidy) of home loans from Rs 15 lakh to Rs 25 lakh. The stock is down 0.7%.
Sesa Sterlite has lost nearly 2% on profit booking. The company’s subsidiary Bharat Aluminium Company (Balco) bagged one more coal block and total two mines in the first tranche of auction.
The Telecom Regulatory Authority of India on Monday reduced mobile termination charge from the current 20 paise per minute to 14 paise. Following the move, Bharti airtel dropped over 1%.
