Index heavyweights drag markets lower; L&T down 2.5%

After a firm start, benchmark indices are trading marginally lower during the noon trades as  losses in Index heavyweights limit gains. 

 

The 30-share Sensex hit a new record-high of 28,028 and the50-share Nifty touched a life time high of 8,383,  in the opening trade today on sustained fund inflows.

 

Foreign institutional investors were net buyers in Indian equities worth Rs 2,537.13 crore on Friday, as per provisional stock exchange data.

 

At 11.50 AM, the Sensex is down 51 points to trade at 27,817 mark whereas the Nifty has declined by 16 points to trade at 8,321.

 

In the broader market, BSE Mid-Cap and Small-Cap indices are trading flat with positive bias and have outshined their larger counterparts.

 

The market breath is positive on the BSE 1,308 advances against 1,270 declines.

 

Rupee:

 

The rupee strengthened by 17 paise to 61.45 against the dollar in early trade today at the Interbank Foreign Exchange on increased selling of the US currency by exporters and banks amidst sustained foreign capital inflows.

 

Asian Markets:

 

Asian shares are trading firm on on Monday after US jobs data pointed to solid economic growth, while China's export performance showed more resilience than some had expected.

 

Most of the Asian markets are trading firm in today’s trade, Hong Kong’s Hang Seng is up over 1% and China’s Shanghai Composite has gained 1.5%. However,  Japan’s Nikkei is down by 0.7%.

 

Sectors & Stocks:

 

On the sectoral front, BSE FMCG index is the top gainer up 1% followed by IT and Healthcare indices gaining over 0.5% each. However, BSE Capital Goods index is the top loser down over 1.4% followed by Metal and IT indices which are down over 0.5% each.

 

Fresh buying is evident in the FMCG space. Index heavyweight and Cigarette maker ITC has gained over 3% and is the top gainer in the Sensex pack. HUL is up 0.5%.

 

Shares of Sun Pharmaceutical Industries and Ranbaxy Laboratories have hit their respective lifetime high and are up over 3% each on BSE after Sun Pharma’s US subsidiary, Taro Pharmaceutical Industries, reported a strong 49% year on year growth in net profit to $143.4 million for the quarter ended September 2014. Dr Reddy’s Lab is trading with marginal gains.

 

Coal India has gained close to 1.3% despite posting a 28% decline in its net profit in the July-September quarter.

 

BHEL, Hero Motocorp, HDFC and Tatas Power are some of the notable names in green among others and have gained between 0.5-1.5%.

 

On the flip side, Larsen and Toubro (L&T) has lost 2.5% on reports that the company management has said it might miss the annual revenue and margin forecast owing to delays in projects and problems in execution of hydrocarbon projects.

 

ONGC has declined around 2.5% however the stock is likely to recover later as the upstream oil regulator DGH has approved commerciality of the oil and gas discoveries in the northern area of state-owned ONGC's prolific KG-D5 block in Bay of Bengal.

 

Metal stocks are losing sheen in today’s trade. Tata Steel, Hindalco and Sesa Sterlite have lost between 1-2%.

 

An appreciating rupee has casted its shadow on the technology pack. Infosys and TCS gave dipped 0.5% each.

 

Select auto stocks are trading lower as October total domestic passenger vehicle sales have declined by 7.52% as compared to the previous. Tata Motors, M&M and Maruti Suzuki have dipped between 0.5-2%.

 

Bank shares are under pressure after weak set of numbers were posted by some public sector banks like Bank of Baroda and UCO Bank. Statements by RBI Deputy Governor H.R. Khan hinting against the possibility of a rate cut by the central bank has also dragged the stocks. HDFC Bank, Axis Bank and ICICI Bank have declined 0.3-1%  and SBI is trading flat.

 

GAIL, Bharti Airtel and Cipla are some of the notable losers among others.