Markets pare gains to turn negative; IT stocks drag

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Benchmark indices pared gains on Friday to turn negative amid falling dollar, rising oil prices tracking mixed cues from Asian markets.

 

Back home, the central statistical organization will give an advance estimate of FY17 GDP without including the demonetisation impact. Investors remained optimistically cautious for the same.

Both Nifty and Sensex regained their crucial 8,300 and 27,000 levels respectively in today's session for the first time since November 11 before turning negative.

 

At 12:36 pm, the S&P BSE Sensex was trading at 26,875, down 3 points, while Nifty50 was ruling at 8,273, down 1 point.

 

Among broader markets BSE Midcap was trading 0.11% higher while BSE Smallcap fell 0.09%.

"While remaining upwardly biased, and higher highs being seen every other day, volatility has also creeped up, suggesting a consolidation or a turn lower is likely. Meanwhile, the 8580 view remains in play, and a turn lower is less expected before atleast 8350 is achieved," said Geojit BNP Paribas in a note.

 

On Thursday, foreign portfolio investors (FPIs) sold shares worth a net Rs 86.88 crore, while Domestic institutional investors (DIIs) bought shares worth a net Rs 449.07 crore, provisional data available with BSE showed.

 

Sectors and Stocks

 

IT stocks continued to trade under pressure with BSE IT down 2.56% as H1-B visa has been re-introduced in the US Congress by two lawmakers. Infosys was the biggest laggard on BSE Sensex, down 2.63% while Wipro and TCS were down over 1.5%.

ONGC, GAIL, Dr Reddy's and HDFC Bank were the biggest gainers on BSE Sensex.

Pharma and oil & gas sectors extended gains from yesterdays session and were trading 0.28% and 0.37% respectively while Banking index was the top sectoral gainer. 

Among individual stocks, Wockhardt was up 6% to Rs 713 on the BSE in early morning trade after the drug firm said German regulator has issued European Union Good Manufacturing Practice (EU GMP) certificate to the company's Ankaleshwar facility in Gujarat.

Global Markets

 

The U.S. dollar wobbled near three-week lows and U.S. bonds were bought back with the 10-year yield at one-month lows on Friday, as investors wound back 'Trump trade', helping to lift the world's stocks to 1-1/2-year highs.

 

Asian shares were no exception, with MSCI's broadest index of Asia-Pacific shares outside Japan up 0.1% in early trade, and Australian shares at a 1-1/2-year high.

 

Japan's Nikkei, however, dropped 0.7% due to the yen's gains.

 

China’s CSI300 index fell 0.11% to 3,364 on Friday morning while other Asian indices, including Hong Kong’s Hang Seng, South Korea’s Kospi and Taiwan’s TWSE were trading higher.

 

The Dow Jones Industrial Average declined 0.21% to settle at 19,899. The S&P500 index edged 0.08% lower at 2,269. The Nasdaq Composite added 0.2% to 5,487.

 

China on Friday raised the exchange rate for the yuan against the US dollar by 0.92 per cent from the previous day, the biggest one-day increase in more than 11 years.


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