Investors flee safe haven IT stocks; turn to cyclicals
Infosys and TCS are the top Sensex losers at this hour while Reliance and Larsen & Toubro are among top gainers
 "Investors flee safe haven IT stocks; turn to cyclicals")
Markets edged lower in afternoon deals dragged down by information technology stocks as investors turn towards cyclicals on an increased risk appetite as they anticipate a recovery led by a new government post 2014 general elections.
At 1320 hrs, the 30-share Sensex was up 22 points at 21,942 levels while the 50-unit NSE Nifty was up almost 8 points at 6,534 levels.
Earlier in the day, the Sensex's surged to all-time high of 22,005.54 points marking its third consecutive record high in as many sessions, while the Nifty hit a second consecutive milestone at 6,545.10 points.
"Nifty had seen very sharp rise in last few session, its due for consolidation and retracement. March options now can initiate short strangle of selling 6300 put and 6700 call. Likely that from current levels of 17.5 IV’s volatility is likely to come down," said Navneet Daga, Derivative Analyst at KR Choksey Securities.
Investors now turn towards broader markets owing to attractive valuations in the space, as experts pointed out that blue-chip stock valuations turned expensive after recent rally that drove market to all-time highs.
Both BSE mid-cap and small-cap indices outperformed the benchmarks with 0.4-0.5% up-move as compared to Sensex's 0.08% decline.
Information technology stocks which bought as a safe haven defense play are seen falling out of favour as investors turn more aggressive.
At 1305 hrs, BSE IT index, the sector that tracks key IT sector stocks, was down over 2%; 8 stocks declined while 2 advanced from the index while capital goods on the other hand index jumped 2.5% with 13 stocks advancing from 20 stocks listed on the index.
Infosys and TCS are the top Sensex losers at this hour while Reliance and Larsen & Toubro are among top gainers.
Among other gainers on the BSE sectoral indices, Realty, bankex, Oil & gas and power indices edged 0.5- 2.1% higher while Metal, TecK and Health Care indices slipped 1.1-1.2%.
In individual stocks, HCL Infosystems surged 20% to Rs 34.10 on back multiple bulk deals on the NSE and BSE.
Infotech Enterprises is trading higher by 3% at Rs 353 after the company has announced that its wholly owned subsidiary, Infotech Enterprises America, Inc. has signed a definitive agreement to acquire Softential, Inc.
At 1320 hrs, the 30-share Sensex was up 22 points at 21,942 levels while the 50-unit NSE Nifty was up almost 8 points at 6,534 levels.
Earlier in the day, the Sensex's surged to all-time high of 22,005.54 points marking its third consecutive record high in as many sessions, while the Nifty hit a second consecutive milestone at 6,545.10 points.
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It's a choppy session as key benchmark indices continue to swing between gains and losses. India VIX, a key measure of market’s expectation of volatility over the near term, surged over 6.4% to 17.8 levels.
"Nifty had seen very sharp rise in last few session, its due for consolidation and retracement. March options now can initiate short strangle of selling 6300 put and 6700 call. Likely that from current levels of 17.5 IV’s volatility is likely to come down," said Navneet Daga, Derivative Analyst at KR Choksey Securities.
Investors now turn towards broader markets owing to attractive valuations in the space, as experts pointed out that blue-chip stock valuations turned expensive after recent rally that drove market to all-time highs.
Both BSE mid-cap and small-cap indices outperformed the benchmarks with 0.4-0.5% up-move as compared to Sensex's 0.08% decline.
Information technology stocks which bought as a safe haven defense play are seen falling out of favour as investors turn more aggressive.
At 1305 hrs, BSE IT index, the sector that tracks key IT sector stocks, was down over 2%; 8 stocks declined while 2 advanced from the index while capital goods on the other hand index jumped 2.5% with 13 stocks advancing from 20 stocks listed on the index.
Infosys and TCS are the top Sensex losers at this hour while Reliance and Larsen & Toubro are among top gainers.
Among other gainers on the BSE sectoral indices, Realty, bankex, Oil & gas and power indices edged 0.5- 2.1% higher while Metal, TecK and Health Care indices slipped 1.1-1.2%.
In individual stocks, HCL Infosystems surged 20% to Rs 34.10 on back multiple bulk deals on the NSE and BSE.
Infotech Enterprises is trading higher by 3% at Rs 353 after the company has announced that its wholly owned subsidiary, Infotech Enterprises America, Inc. has signed a definitive agreement to acquire Softential, Inc.