Infosys, TCS outperform in a subdued market

Markets continue to trade in a narrow range as losses in financials and auto shares offset gains in the technology pack. Meanwhile, release of the macroeconomic numbers CPI and IIP due to be released tomorrow coupled with weakness in Rupee after China devalued yuan by nearly 2% hurt the sentiments.

At 10:40 am, the Sensex is down 10 points at 28,092 and the Nifty has slipped 5 points to trade at 8,521.

From the IT pack, Infosys and TCS are trading higher by 2% and 1% each on the back of a weakened rupee. Infosys and TCS have placed their competitive bid for the setting up the IT backbone for the GST Network.

Shares of Cipla turn ex-dividend today for dividend of Rs 2 per share for the year ended 31 March 2015. The stock is up 1.5%. 

SBI is up 1.3% ahead of the quarterly results due today.

Vedanta has climbed 0.3% fter the company announced the reopening of Codli, its largest mine in Goa, marking the resumption of iron ore mining in the state after nearly three years. 

Metal stocks are losing sheen in today’s trade after after China devalued the yuan on Tuesday after a run of poor economic data. Hindalco and Tata Steel are down 1.5% each. Tata Steel is due to release its numbers today.

eClerx Services has rallied 11% to Rs 1,768, also its record high on the BSE, after reporting a better-than-expected consolidated net profit at Rs 73.24 crore for the first quarter ended June 30, 2015 (Q1).

Shares of IL&FS Transportation Networks (ITNL) has plunged 9% to Rs 128, also its 52-week low on the BSE, after the company reported a sharp 98% year-on-year (Y-o-Y) declined in consolidated net profit at Rs 2.90 crore for the quarter ended June 30, 2015 (Q1), due higher interest and raw material cost.

Shares of Engineers India dipped by 5% to Rs 224 on the BSE after the company reported 29% year-on-year (Y-o-Y) decline in net profit at Rs 56.80 crore for the first quarter ended June 30, 2015 (Q1), due to lower operational income. The state-owned company had posted a profit of Rs 80.40 crore in the year-ago quarter.
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(updated at 9:45am)

Markets are trading flat in the early trades tracking weakness in the Asian peers with China equities losing steam after China devalued the yuan on Tuesday after a run of poor economic data, guiding the currency to its lowest point in almost three years.  Meanwhile, traders remain cautious ahead of the key macroeconomic data, CPI and IIP due to be released tomorrow and WPI due to be unveiled on Friday.

However, gains in the US markets on reports suggesting that the Federal Reserve may not do the interest-rate hike in September coupled with further drop in the crude prices capped the downside.

At 9:45 AM, the Sensex was down 2 points at 28,099 and the Nifty was down 6 points at 8,520. In the broader market, BSE Midcap and Smallcap indices were up 0.1% each. The market breadth was positive with 941 advances versus 823 declines.

RUPEE

The Indian rupee plunged by 29 paise at 64.16 per dollar against previous close of 63.87 on heavy capital outflows from the equity market besides dollar's strength after China devalued the yuan by nearly 2%.

RESULT CAPSULE

Among notable bluechips, Tata Steel, Sun Pharmaceutical Industries, State Bank of India, Godrej Industries, Hindustan Copper, NMDC, Bosch and Aditya Birla Nuvo will announce quarterly results today.

STOCK TRENDS

On the sectoral front, BSE Metal, Auto, Capital Goods and Power indices are losing sheen and are down between 0.4-1%. However, BSE IT and Realty indices are gaining higher up to 1%.

The technology pack is gaining across the bourses on the back of a weakened rupee. Infosys and TCS are trading higher by 2% and 0.5% each. Infosys and TCS have placed their competitive bid for the setting up the IT backbone for the GST Network.

SBI is up 1.3% ahead of the quarterly results due later today.

Vedanta has climbed 1% after the company announced the reopening of Codli, its largest mine in Goa, marking the resumption of iron ore mining in the state after nearly three years. 

Metal stocks are losing sheen in today’s trade after after China devalued the yuan on Tuesday after a run of poor economic data. Hindalco and Tata Steel are down 1.5% each. Tata Steel is due to release its numbers today.

Sun Pharma is trading lower by 1% ahead of the quarterly results today.

Capital Goods major BHEL and L&T are trading lower ahead of the IIP numbers due tomorrow. BHEL is down 1% and L&T has dipped 0.3%.

FMCG majors ITC and HUL are trading with caution ahead of the CPI numbers due to be unveiled to tomorrow. ITC has lost 1% and HUL has slipped 0.8%.

Bharti Airtel has reduced rates of its home broadband plans by up to 30 per cent for all new activations as the company won't be charging any premium for higher speed. The stock is down nearly 1%.

GLOBAL MARKETS

Asian markets were trading mixed with shares in China witnessing profit taking after sharp gains in the previous session. The Shanghai Composite was down 0.2% and the Nikkei eased 0.2% while Straits Times slipped 0.5%. However, shares in Hong Kong edged higher and the Hang Seng was up 1.3%.

Major US share indices ended over 1% higher on Monday on renewed buying interest in commodity stocks while the recent acquisition plan by Warren Buffett also aided sentiment. According to reports Berkshire Hathaway Inc plans to acquire aerospace and energy equipment manufacturer Precision Castparts Corp. The Dow Jones ended up 242 points or 1.4% at 17,615, the tech-laden Nasdaq ended up 58 points or 1.2% at 5,101.80 and the broader S&P 500 ended up 1.3% at 2,104.18.