Nifty holds 8,750 amid choppy trades; midcap, smallcap outshine

Benchmark indices continue to trade in a narrow range with positive bias led by auto and financial shares. However, the upside is capped due to selling among the index heavyweight Reliance Industries.

By 11:02 am, the S&P BSE Sensex was up 58 points at 28,482 and the Nifty50 was up 9 points at 8,783. Among broader markets, BSE Midcap and Smallcap indices are up 0.5% each.

Top gainers from the Sensex pack are Adani Ports, Maruti Suzuki, Tata Motors, HDFC and Asian Paints, all surging between 1%-3%.

On the losing side, Coal India, Reliance Inds, Bajaj Auto, Cipla and L&T are down between 1%-2%.

Cadila Healthcare surged 4% to Rs 391 on the BSE after the pharmaceutical company said that its oral solid dosage drug manufacturing plant located at SEZ, Ahmedabad has received an Establishment Inspection Report (EIR) from the U.S. Food and Drug Administration (USFDA).

Shares of infrastructure companies were trading higher for the third straight trading sessions after the Cabinet on Wednesday approved an array of measures to help quickly resolve disputes, pump in liquidity and deal with stressed assets.

Since then, Hindustan Construction Company (HCC) and Patel Engineering said that the Union Cabinet's decision requiring the government agencies to pay 75% of arbitral awards would result in company’s debt being reduced by half.

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Updated at 9:55 am

Markets are trading in a narrow range with positive bias as investors sit tight ahead of the US non-farm payrolls data, which will be released later today.

By 9:55 am, the S&P BSE Sensex was up 33 points at 28,456 and the Nifty50 was up 4 points at 8,778. Among broader markets, BSE Midcap and Smallcap indices were up 0.2%-0.4%.

On Thursday, markets snapped three day winning streak with telecom shares leading the decline after Reliance Industries announced the launch of Reliance Jio with disruptive pricing strategy in addition to voice calls and national roaming free of cost.

“Post consolidating for almost a month the index finally witnessed a breakout from the contracting triangle formation. On the daily scale, inside day formation is witnessed but the trend strength indicators viz. RSI & ADX are yet to witness any overbought situation or loss in momentum which augurs well for the uptick to remain firm. The pattern indicates an immediate movement towards 8,880 which could further sync with the intermediate patterns & extend the up move,” adds Sacchitanand Uttekar, Equity Technical Analyst of Motilal Oswal.

Globally, the potential for strong US job data later in the day - which would raise chances of a Federal Reserve rate hike soon - kept Asian financial markets nervously marking time on Friday.

The dollar, which was bullish much of the week, nursed losses after downbeat US manufacturing data tempered the recent optimism on the US economy that revived expectations for a near-term rate hike by the Fed.

MSCI's broadest index of Asia-Pacific shares outside Japan was barely changed for the day. Australian stocks lost 0.7%. South Korea's Kospi and Japan's Nikkei were flat, and the yen was marginally stronger.

Back home, foreign portfolio investors (FPIs) sold shares worth a net Rs 301.51 crore yesterday as per provisional data released by the stock exchanges.

Besides, the India Meteorological Department (IMD) said that for the country as a whole, cumulative rainfall during this year's monsoon so far (till 31 August 2016) was 3% below the long period average (LPA).

Among key stocks, ICICI Bank, Tata Motors, Lupin, Hero MotoCorp and HDFC have surged over 1% each.

Lupin announced that its US subsidiary Gavis Pharmaceuticals LLC, USA has received tentative approval from the United States Food and Drug Administration (USFDA) to market a generic version of Pfizer Inc.'s Zithromax for oral suspension, 100mg/5ml and 200mg/5ml.

Hero MotoCorp reported a 28% growth in its total two-wheeler sales at 6.16 lakh units in August 2016 over August 2015.

The Supreme Court on Wednesday ruled that the acquisition of land in Singur by the Left Front government of West Bengal in 2006 for Tata Motors’ Nano car project was illegal and it had violated the procedure laid down by law. Tata Motors is up over 1%.

Housing Development Finance Corp Ltd, India’s largest mortgage lender, on Wednesday informed exchanges that it was opening the second tranche of its rupee denominated Masala bonds offering to raise another Rs 500 crore. The stock has gained by 1%.

On the losing side, Bharti Airtel has dropped by over 1%. Bharti Airtel said that the High Court Division of the Supreme Court of Bangladesh (High Court) approved the merger of Airtel Bangladesh into Robi Axiata owing to certain conditions.

Besides this news, shares of Bharti Airtel lost up to 10% yesterday after Mukesh Ambani, Chairman of Reliance Industries (RIL) at the company's annual general meeting today announced the launch of Reliance Jio 4G services offering free voice calls for Jio customers and zero roaming charges across India from September 5 to December 31, 2016.

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