Lacklustre trades continue, Power shares surge ahead

Weakness persists in auto, IT and FMCG shares

Markets continued to trade in the red, albeit off the day's low. The Sensex, after touching a low of 18,947 has recovered somewhat and is now down 29 points at 19012. Nifty is down 12 points at 5,736.

Japanese stocks rebounded sharply Wednesday, helped by strength among the auto shares, with other Asian markets putting in a lackluster performance. The Nikkei added 3% at 12,347. Shanghai Composite and Hang Seng are down 0.2-0.3% each.

Foreign institutional investors (FIIs) sold shares worth a net Rs 45.41 crore on Tuesday, 2 April 2013, as per provisional data from the stock exchanges.

The power sector has seen some smart trades this afternoon. BSE power index has surged 2% to 1,722. This follows the CERC ruling in favour of Adani Power on the issue of supply of electricity from its imported coal-based power project at Mundra in Gujarat.

"we observe GMRINFRA to have added about 40 lakh units (in the previous two trading sessions) to if Futures Open Interest to bring the total number to about 4.55 cr units; the counter may test 25.10 levels indicating an upside of about 9-10% from current levels," said Shshank Mehta, Derivatives Strategist, Shah Investor's Home Ltd.

BSE Healthcare, Realty and PSU indices have added marginally in trades as well. On the other hand, BSE auto index has slipped 0.8% to 9868. FMCG and IT shares are also weak this noon.

Tata Power has surged 3.8% at Rs 99. Sun Pharma, BHEL, NTPC and Jindal Steel are up 1-2% each. On the other hand, Bharti Airtel has slipped 3% to Rs 283. Bajaj AUto, Tataa Motors and HUL are down in trades as well.