Benchmark indices turned range-bound in the after-noon trade after initial rally after India’s GDP grew lower than expected in the September quarter at 7.3%, as compared to 7.6% in the same quarter last year.
Sensex rose as much as 116 points during early trade before slipping in red dragged by banking, power and realty sector indices while Nifty tested it’s crucial 8,200 levels.
At 2:33 pm, the S&P BSE Sensex was trading at 26,591, down 62 points, while the broader Nifty50 was quoting 8,217, down 7 points. In broader markets, BSE Midcap fell 0.52% while BSE Small cap was trading 0.07% lower.
“Short covering continued after early trades yesterday pushed above 8186. This move has taken prices towards the 8280 objective which may force a consolidation or a turn lower today, but a sharp fall is less likely unless below 8070.
Alternatively, direct rise above 8280 could open room for 8280-8380 or even 8580 in an optimistic scenario,” said Geojit BNP Paribas in a technical note.
The market breadth turned negative as 1,335 shares have declined and 1,056 shares advanced.
Banking index was the top sectoral loser on BSE Sensex with only one stock trading in green. The fall was led by ICICI Bank (1.89%), Federal Bank (1.56%), Kotak Mahindra Bank (1.30%) and Bank of Baroda (1.22%).
Despite fuel price cut, aviation stocks SpiceJet and Jet Airways fell over 3.5% each.
GAIL (2.85%), ONGC (2.66%) and RIL (1.67%) were top gainers while Power Grid (2.86%), Asian Paints (2.51%), ICICI Bank (1.79%) and Tata Motors (1.61%) were the top laggards in the Sensex.
Nifty Realty index fell over 1% at intra-day with DLF falling 1.96% and Sobha down 1.72%.
Shares of pharmaceutical companies were in focus, gaining by up to 3% in an otherwise range-bound market after the Delhi High Court set aside the Centre’s decision to ban 344 fixed dose combination (FDC) medicines.
Lupin, Dr Reddys Laboratories, Cadila Healthcare, Cipla, Aurobindo Pharma, Sun Pharmaceutical Industries and Glenmark Pharmaceuticals from the Nifty Pharma index were up between 1% and 2% on the NSE.
Among other stocks, Eicher Motors has moved higher by 3.5% to Rs 22,434 on the BSE after the company reported 41% year on year (YoY) jump in total sales at 57,313 units in November 2016. The motorcycle and commercial vehicle maker sold 40,769 units in the same month last year.
Shares of companies engaged in oil exploration & production related business have rallied by up to 15% on the BSE in intra-day trade as oil prices surge 10% after the Organization of the Petroleum Exporting Countries (OPEC) agrees to cut output for first time since 2008.
Oil & Natural Gas Corporation (ONGC) hit a 52-week high of Rs 299, up 3.5% in intra-day trade, while Oil India was up 3.8% to Rs 435 on the BSE.