Markets continued to trade with marginal losses in late morning deals weighed down by profit taking in financials post the sharp gains in the previous session.
At 10:40am, the S&P BSE Sensex was down 50 points at 28,001 and the Nifty50 was down 14 points at 8,664. In the broader market, the BSE Midcap was trading flat while the Smallcap index was up 0.5%.
Foreign institutional investors were net buyers in equities worth Rs 345 crore on Tuesday, as per provisional stock exchange data.
Endurance Technologies extended gains and was up 26%. Earlier, the stock listed at Rs 572 on the National Stock Exchange (NSE), a 21% premium against its issue price of Rs 472 per share.
In the financial pack, ICICI Bank was down 1.5% after 11% in the previous two sessions after the Essar group on Saturday signed a binding agreement with Russia’s Rosneft, United Capital Partners and Trafigura Group Pte. to sell 98% in its most priced asset, the 20 million tonnes per annum Vadinar refinery and Vadinar port in Gujarat.
HDFC and HDFC Bank were down 0.6% each.
FMCG majors were also among the top losers with ITC and HUL down 0.9%-1.7% each.
Among other shares, Diamond Power Infrastructure was locked in upper circuit for the third straight day at Rs 57.45, up 10% on BSE, on the back of heavy volumes.
(Updated at 9:48am)
Markets have turned flat on account of profit taking after making a higher opening mirroring positive trend among global peers.
By 9:48 am, the S&P BSE Sensex was down 11 points at 28,041 and the Nifty50 was 2 points higher at 8,680. Broader markets are outperforming the benchmark indices- BSE Midcap and Smallcap indices are up 0.2%-0.6% each.
On Tuesday, benchmark share indices registered their biggest intra-day gain since May 25, 2016, amid firm global cues, after index heavyweights staged a recovery on short covering while financials rallied after ICICI Bank extended gains for the second straight session.
“The break past 8,626 region sparked short covering rallies, which incidentally has brought the 8,700 challenge into focus. Favoured view expects this region to discourage the upside attempts. Direct rise above the same may not interest bulls straight away, and may invite some distribution or long liquidation,” added Geojit BNP Paribas in a technical note.
In the macro-economic front, the GST Council on Tuesday discussed a four-tier rate structure suggested by the Centre and agreed on compensation to loss-incurring states for the first five years of the new tax regime.
Asian shares inched ahead on Wednesday after Wall Street got a lift from encouraging corporate earnings and investors wagered an imminent barrage of Chinese data would confirm the economy had at least stabilised.
MSCI's broadest index of Asia-Pacific shares outside Japan added 0.4%, on top of a jump of 1.4% on Tuesday. Australian shares firmed 0.4%, while Japan's Nikkei dithered either side of flat. All eyes were on the Chinese gross domestic product (GDP) report due today.
Oil prices rose over 1% on Wednesday, lifted by a report of falling US crude inventories and an OPEC statement saying a planned production cut was achievable, but analysts warned that Chinese economic data could erode bullish momentum.
Back home, foreign portfolio investors (FPIs) bought shares worth a net Rs 345.04 crore yesterday as per provisional data released by the stock exchanges.
Bayer CropScience, Hindustan Zinc, KPIT Technologies, NIIT and Tata Coffee will announce their second quarter earnings today.
Quarterly earnings from bluechips Reliance Industries (October 20) and Wipro (October 21) would largely influence market trend this week, say experts.
CORPORATE NEWS & STOCK TRENDS
Top gainers from the Sensex pack are Wipro, Sun Pharma, Lupin, ONGC and Cipla, all up between 0.8%-1.3%. On the losing side, ICICI Bank, Adani Ports, ITC, TCS and Bharti Airtel are down 0.7%-1%. On Tuesday, ICICI Bank gained 4.6%, extending its two-day gains to 12%.
Shares of Endurance Technologies will debut on the bourses today. The initial public offer (IPO) of the company saw strong response from investors. The issue received bids for 75.52 crore shares and it was subscribed 43.84 times. The issue price was fixed at top end of the price band of Rs 467 to Rs 472 per share.
Private sector lender IDFC Bank will be included in the NSE's Nifty Midcap 50 index from November 15. Havells India, on the other hand, will move out of the index. IDFC Bank has risen over 1% while Havells has slipped by 1%.
Reliance Industries (RIL) is expected to see its gross refining margins (GRM) decline in the September quarter after repeating a seven-year high in the June quarter, even as analysts expect its petrochemical margins to remain healthy and offset the fall in GRMs. Shares of RIL are up over 1%.
Debt-laden ABG Shipyard would soon get a new owner as promoters of the company are in advance talks with a Russian shipbuilder for sale of controlling stake. The stock has zoomed over 9%.
The JSW Group will be investing Rs 3,400 crore in West Bengal over the next three years. At a joint press conference with West Bengal Chief Minister Mamata Banerjee, JSW group chairman Sajjan Jindal said that the group had initially planned a steel plant at Salboni in West Medinipur but raw material availability and the downturn in the steel sector had prompted it to look for other projects.
National Aluminium Company (Nalco) has posted 5.8% growth in aluminium sales in the April-September period, overcoming sluggish market conditions.
Mahindra & Mahindra (M&M) announced yesterday that it has subscribed to and has been allotted 60 lakh equity shares of Rs 10 each of Classic Legends Private (CLPL), constituting 60% of its post-issue capital, offered to the company by CLPL on preferential basis. The stock is marginally down.
Bank of Baroda (BoB) announced that a meeting of the Capital Raising Committee of the Board is scheduled to meet on 21 October 2016, to consider and approve the issue of bonds. BoB is trading flat. With Reuters inputs