Markets turn flat; HDFC down nearly 2%

Markets are trading flat after surging nearly 100 points in the early morning trades. The downside is the result of financial and select auto shares; however, the losses are capped by pharma shares.

At 10:30 AM, the Sensex was at 28,463, up by 12 points while the Nifty was at 8,609, up by 2 points.

The top losers on the Sensex are Coal India, HDFC, Axis Bank, Tata Motors and Hindustan Unilever, down between 0.5-1.7% each.

The top gainers on the Sensex are Tata Steel, BHEL., Sun Pharma, Lupin and Cipla , all gaining between 0.8-1.1%

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 (updated 9:55 AM)

Markets erase gains after opening higher dragged down by financials and select auto shares.

At 9:50 AM, the Sensex was at 28,437, down by 8 points while the Nifty was at 8,596, down by 10 points.

The top losers on the Sensex are Coal India, HDFC, Axis Bank, Tata Motors and Tata Steel, down between 0.4-1.5% each

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(updated 9:30 AM)

Markets opened higher on Friday, extending the rally from the previous session, following strong cues from their Asian peers.

The Sensex opened at  28,502, up by 56 points and the Nifty opened at 8,618, up by 10 points

The broader markets are in line with their larger peers, with BSE Midcap and Smallcap indices trading up by 0.19% and 0.55% respectively. The market breadth is also positive, with 854 advances against 251 declines on the BSE.

The benchmark indices had ended at three-month highs on Thursday, buoyed by the approval for composite cap on all foreign direct investment and Greece parliament's approval of tough austerity measures needed for the country to receive financial aid and avoid its exit from the eurozone. The BSE Sensex had rallied 247 points the Nifty had ended above the 8,600 mark.

The southwest monsoon remained 32% below normal in the first 15 days of July, which is the key month for sowing of kharif crops.

On the currency front, the rupee has opened flat at 63.51 against the greenback.

Meanwhile, Foreign Portfolio Investors (FPI)  were net buyers to the tune of Rs.745.81 crores, as per provisional stock exchange data.

EXPERT VIEW

"CNX Nifty opened positive and witnessed sustained buying interest till the end of the session and headed towards 8,620 levels on Thursday. It gave highest daily close of last three months and closed the day with the handsome gains of more than 80 points above its 8,600 levels and has been making higher highs - higher lows from last four trading sessions and now till it sustains above 8,560 levels momentum may continue till 8,650 and 8,680 levels. Now, it has to hold above 8,560 levels to witness a buying interest towards 8,650 and 8,680 levels. However, if it fails to hold 8,520 levels then weakness may be seen towards next support of 8,480 and 8,440 levels. Traders are required to be cautious as volatility is likely to remain ahead of the quarterly results season," points out a morning note from Anand Rathi Research.

RESULTS CALENDAR

Cement major ACC and Crisil are set to announce their corporate earnings for the quarter ended June 2015 later in the day.

GLOBAL MARKETS

The Asian stocks mostly advanced early Friday, tracking a positive lead from Wall Street overnight. Japan's Nikkei 225 bounced up to its highest level since June 26 as the yen hovered near its weakest level against the greenback in more than three weeks. South Korea's Kospi index pulled back from a two-week high, as markets await the outcome of a shareholder vote on a merger of two Samsung companies.

In Taiwan, chipmaker Taiwan Semiconductor Manufacturing (TSMC) surged 2.2%, following better-than-expected results for the second quarter. The index was trading with modest gains at opening bell.

Overnight, Wall Street had ended stronger on Thursday after earnings reports from eBay and Netflix boosted optimism. The Dow Jones rose 70 points or 0.3% to 18,120 and Nasdaq Composite added 64 points or 1.2% to end at 5,163.

SECTORS & STOCKS

Sectorally, BSE Healthcare, IT and Capital Goods indices have rallied 0.8% each while BSE Metal index is trading down by 0.17%

Tata Motors announced that its wholesale sales globally remained flat in June 2015 year-on-year. This also includes its sales from JLR. The stock is down by 0.5%.

The Cabinet yesterday cleared a proposal to merge the limits of foreign direct and portfolio investments into composite caps to make foreign investment regime easier following which Axis Bank surged in yesterday’s trade. The stock is down nearly 1% this morning on account of profit-booking.

The possibility of rate-cut by the central bank has lifted other financial shares. HDFC Bank, ICICI Bank and SBI have rallied 0.4-1% each on the Sensex. However, index heavyweight HDFC is down by 0.6%

Sun Pharma, Lupin, Cipla have rallied 0.8-1.6% each.

From the IT space, Wipro has gained 1% while TCS and Infosys are trading higher by 0.3% and 0.6% respectively.

Index heavy weights Reliance Industries and ITC have gained 0.6% and 0.5% respectively on the Sensex.

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