Broader markets outperform benchmark indices; ICICI Bank drops 2%

Benchmark indices continue to maintain subdued trend mirroring weak Asian cues along with selling among financials and auto shares leading the negative trend. However, buying among index heavyweight Reliance Industries has capped the downside.

By 10:25, the S&P BSE Sensex dipped 123 points at 28,545 and the Nifty50 slipped 36 points to trade at 8,796. Broader markets are outperforming- BSE Midcap and Smallcap indices are up 0.1%-0.2%.

According to Jimeet Modi, CEO of SAMCO Securities, “Market is likely to face resistance around 8950 levels on the upper side. Medium term positional traders should trail their long positions at 8500 Nifty50 levels and should do not commit fresh unless the highs are taken away decisively whereas Investors are advised to stay on the sidelines at the current juncture".

Top losers from the Sensex pack are ICICI Bank, GAIL, HDFC, ITC and Tata Motors, all plunging between 1%-2%. On the gaining side, Reliance Inds, Power Grid, Tata Steel, Dr Reddy’s Labs and L&T are up 1%-2%.

Among other shares, GNA Axles has listed at Rs 252, a 22% premium against issue price of Rs 207 per share, on the National Stock Exchange (NSE). The stock moved higher and hit a high of Rs 262 post listing.   

KNR Constructions hit a 52-week high of Rs 765, up 5.5% on the BSE in an early morning trade, after the company announced that the board will meet on Friday, September 30, to consider stock split in the ratio of 1:5.

Vardhman Textiles has rallied 4% after the company announced that the board approved a buyback of 6.13 million equity shares for Rs 1,175 per share.

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Updated at 9:30 am

Markets have started the week on a lower note tracking weakness among global peers along with selling among rate-sensitive sectors leading the decline.

By 9:30, the S&P BSE Sensex dipped 120 points at 28,548 and the Nifty50 slipped 38 points to trade at 8,793. Broader markets are outperforming- BSE Midcap and Smallcap indices are flat with positive bias.

“Short term outlook for the market remains negative till Nifty trades below 8970 levels & expecting targets in the range of 8,650-8,540 levels in this short term correction. Medium term outlook for the market remains positive till Nifty trades above 8,294 levels & expecting targets in the range of 9,400-9,700-10,000 levels in medium term,” says Devang Shah, Portfolio Manager- PRO TECH-PMS at Sharekhan.

The market will remain volatile this week as traders roll over positions in the futures & options (F&O) segment from the near month September 2016 series to October 2016 series. The near month September 2016 derivatives contracts expire on Thursday, 29 September 2016.

Investors will also continue to track the progress of monsoon rains. The India Meteorological Department (IMD) in its weekly monsoon update issued on September 22, 2016 said that for the country as a whole, cumulative rainfall during this year's monsoon has so far upto 21 September 2016 been 5% below long period average (LPA).

Globally, Asian shares began the week under a cloud on Monday after losses on Wall Street, as investors' attention turned from central banks to American politics ahead of the first US presidential debate.

MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.1% in early trade, while Japan's Nikkei stock index slumped 0.5% against the headwinds of a stronger currency

Wall Street logged weekly gains but ended with solid losses on Friday. The S&P 500 still managed to record its best weekly performance in more than two months after the US Federal Reserve held interest rates steady on Wednesday.

Investors awaited Monday evening's US presidential debate between Donald Trump and Hillary Clinton, which will take place early on Tuesday in Asian time zones. The first of three debates ahead of the November election could set US television audience records.

Back home, foreign portfolio investors (FPIs) sold shares worth a net Rs 299.98 crore on Friday as per provisional data released by the stock exchanges.

Foreign investors have pumped Rs 9,500 crore into the country's capital markets so far this month, driven by sound progress on rollout of GST and contraction in current account deficit (CAD).

Among key stocks, ICICI Bank, Tata Motors, HDFC, Adani Ports and ITC have fallen between 1%-2%. On the gaining side, Dr Reddy’s Labs, RIL, TCS, Power Grid and Sun Pharma have risen nearly 1% each.

ICICI Bank has plunged by 2%. ICICI Bank has said it has brought 32 lakh customers under the voice recognition service for phone banking and is aiming to conduct 50 lakh transactions via this facility by the end of this fiscal.

The combined market valuation of top six Indian companies went up by Rs 33,985.46 crore last week, with RIL gaining the most. While TCS, RIL, HDFC Bank, HDFC, ONGC and CIL saw gains in their market capitalisation (m-cap) for the week ended Friday, ITC, Infosys and HUL suffered losses.

Shares of interest rate sensitive sectors may witness some action ahead of the monetary policy. The Reserve Bank of India (RBI) will unveil fourth bi-monthly monetary policy statement for the year ending March 2017 on 4 October 2016.

With Reuters inputs

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