Markets turn choppy; banks, ITC under pressure

Markets have turned choppy after making a positive opening as investors remain wary ahead of the CPI and IIP data due to be released later during the day.

Weakness among Asia markets has dampened the sentiments among local investors.

By 9:55, the Sensex was lower by 8 points at 28,526 whereas the Nifty has gained by 11 points at 8,638 levels.

However, the broader markets are outperforming the benchmark indices- BSE Midcap and Smallcap indices are up 0.6-0.7%.

The main losers on the Sensex are Bharti Airtel, BHEL, ICICI Bank, Axis Bank, SBI and ITC, al dipping between 1-2%.

On the gaining side, Hindalco, Hero Moto, Cipla, Maruti Suzuki and Dr Reddy’s Labs have risen between 1-2.3%.

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Updated at 9:30

Markets have started the session on a positive note ahead of the CPI and IIP data due to be released later during the day.

By 9:30, the Sensex was higher by 65 points at 28,599 whereas the Nifty has gained by 29 points at 8,656 levels.

However, the broader markets are outperforming the benchmark indices- BSE Midcap and Smallcap indices are up 0.6-0.7%. Markets breadth on the BSE is healthy with 961 shares advancing and 403 shares declining.   

Among macro economic data, the government will release index of industrial production (IIP) data for December 2014 and the annual rate of inflation based on the combined consumer price indices (CPI) for urban and rural India in January 2015 today later during the day.

Also, corporate earnings to be posted by some of the blue-chip companies including BHEL, Cipla, Coal India and Hindalco are likely to dictate the trend on the bourses during the session.

Meanwhile, foreign portfolio investors sold shares worth a net Rs 371.27 crore yesterday, as per provisional data. Domestic institutional investors (DIIs) bought shares worth a net Rs 147.49 crore yesterday, as per provisional data released by the stock exchanges.

GLOBAL MARKETS

Asian stocks and the euro dipped on Thursday as markets erred on the side of caution over the ongoing Greek debt negotiations amid conflicting headlines on progress in the talks.

MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.2%. South Korea's Kospi lost 0.2%. Japan's Nikkei bucked the trend and gained 1.6% thanks to a significantly weaker yen.

Investors awaited a European Council meeting later on Thursday to gauge whether in fact the debt negotiations were moving forward.

SECTORS & STOCKS

BSE Auto, Healthcare, Power and Realty indices are up 0.6-1.2%. Infact, all the sectoral indices are trading in positive zone.

From the auto space, Hero Moto, M&M, Maruti Suzuki and Tata Motors have gained between 1-2%.

The Mahindra group is planning to make a big-bang entry into the defence sector, with the acquisition of 25-30 per cent stake in Pipavav Defence, India’s largest private shipyard, based in Gujarat. Banks privy to the deal said the Pipavav Defence board was slated to meet on Friday to approve the transaction. M&M has gained over 1% at Rs 1,148.  Pipavav Defence & Offshore Engineering has rallied over 12% on the BSE.

Hero MotoCorp, the world’s largest two-wheeler manufacturer, has introduced a refreshed version of its entry level commuter, the HF Dawn. The entry-level commuter gets few exterior changes and addition features. This bike is priced at Rs. 39,370.

Meanwhile, the Society of Indian Automobile Manufacturers (SIAM) expects passenger vehicle sales to rise three to five per cent in 2014-15, up from its earlier projection of one-two per cent, on improved consumer sentiment over the past few months.

With two months to go till the end of 2014-15, sales are up four per cent to 2.12 million vehicles.

Other notable gainers are Hindalco, Dr Reddy’s Labs, Wipro, ICICI Bank, HUL and RIL.

On the losing side, BHEL, Coal India, Sesa Sterlite, ITC and Tata Steel have slipped between 0.3-1.3%.


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