Markets remain subdued; Sun Pharma falls 2%, GAIL up 2%

Benchmark indices continue to trade in a narrow range with negative bias weighed down by shares of Tata Motors, ITC and L&T.

By 11:53, the Sensex was lower by 56 points at 27,588 and the Nifty slipped by 15 points at 8,355.

Technical analysts say that the Nifty needs to cross and hold above 8,380 to witness the up move towards 8,450 and 8,480 levels.

"On the downside, if it fails to sustain 8,340 levels, then the index may witness profit booking towards 8,320-8,280 zones. Traders are required to maintain cautious approach ahead of the Derivatives expiry week and GDP data scheduled this Friday," said a morning note from Anand Rathi Research.

Among broader markets, BSE Midcap and Smallcap indices are up 0.1-0.2%.

The market breadth is positive. Out of 2,020 stocks traded on the BSE, there are 982 advancing stocks as against 956 declines.

On the currency front, extending losses for the second straight day, the rupee depreciated 11 paise to 63.68 against the dollar in early trade today at the Interbank Foreign Exchange market as the American currency firmed up overseas.

RESULTS CALENDAR

BHEL, Tata Motors, Tech Mahindra, HPCL, Thermax, Dish TV, United Spirits and Simplex Infra will declare their Q4 results today.

SECTORS & STOCKS

BHEL and Tata Motors are trading lower between 0.3-2% ahead of the Q4 results. Other notable losers are Sun Pharma, NTPC, Hindalco, ONGC, ITC and Wipro.

ITC has extended yesterday's fall. The company's March quarter results that were announced post market hours on Friday came in lower than expectations.

ONGC Videsh (OVL), the unlisted overseas arm of state-run petroleum explorer Oil and Natural Gas Corporation (ONGC), said its net profit for the financial year ended march (2014-15) stood at Rs 1,904 crore, a 57% slump as compared to the previous year (2013-14).

ICICI Bank has launched a voice recognition service, which can identify and authenticate a customer, based on his voice. This will spare the customer the task of remembering his account and personal details and passwords.

GAIL announced after market hours yesterday that as a first step to usher in commencement of project work on the first phase of Jagdishpur-Haldia Pipeline, Dharmendra Pradhan, Union Minister of State (Independent Charge) for Petroleum and Natural Gas inaugurated the project office in Patna yesterday. The stock is the top Sensex gainer, up almost 2%.

Hero Moto, Bharti Airtel, M&M, SBI and Vedanta have gained between 0.4-1.4%.

The Reserve Bank of India (RBI) is expected to go for a third cut in interest rates this year. The unanimous response to a Business Standard poll of 10 market participants was Governor Raghuram Rajan would reduce the repo rate by 25 basis points (bps) in the monetary policy review on June 2, as inflation was benign and there was a need to support growth.

SMART MOVERS

Igarashi Motors India has rallied 9% to Rs 535 on the NSE after reporting a strong 71% year on year (YoY) jump in net profit at Rs 17.04 crore for the fourth quarter ended March 31, 2015 (Q4), on back of strong operational performance and lower interest cost.

Shares of PNC Infratech have listed at Rs 387, a marginal 2.4% premium against its issue price of Rs 378 per share on the National Stock Exchange (NSE).

Shares of Adani Enterprises have moved higher by 2.2% to Rs 804, also its new high on the NSE, after the company fixed June 04, 2015 as the record date for the purpose of scheme of arrangement & demerger.

PTC India Financial Services has slipped 10% to Rs 52.65 on the NSE after the company reported a sharp 66% year-on-year decline in net profit at Rs 15.81 crore for the fourth quarter ended March 31, 2015 (Q4).