Market remains choppy; banking stocks in demand

Market continues to be choppy in afternoon trade with the benchmark indices struggling for stability.

Gains in heavyweight banking stocks such as ICICI Bank and SBI were offset by losses by information technology bellwether TCS and Infosys.  

At 1.40pm, the 30-share BSE Sensex was down by 6 points at 24,865 levels and the 50-share Nifty was down 3 points 7,412.

The broader markets bucked the trend though, with both the BSE midcap and small cap indices trading over 1.6% higher.  

The rupee strengthen against the US dollar as as foreign investors pumped money into the Indian market. The rupee is currently trading at 59.2 against the US dollar.

Asian Markets

Asian shares stepped back from their recent highs on Wednesday, while the dollar benefited from rising U.S. Treasury yields and pressure stayed on the euro ahead of expected easing steps from the European Central Bank.

Japan’s Nikkie appreciated .2% and Straits Times Index slipped .57% .In addition, Hong Kong'Hang Seng Index and Shanghai Composite Index dipped .6% and .7%, respectively.
 
Back home, financials, Auto shares, select capital goods and select metal shares are the top gainers.

Hero moto corp and Bajaj Auto are up3.3% and 1.8%, respectively.

Sbi, axis bank and ICICI rose 1.5%,1.1% and .8%, respectively.

 
Maruti Suzuki rose 1.2% to Rs 2367 on the BSE after recording a hike in total production. The total production for May 2014 stood at 121,746 units as compared to 101,360 units for May 2013, representing a jump of 20%.

IT, Pharma and oil and gas stocks are the biggest losers.

Information technology pack is taking it on the chin in this session. TCS has weakened by 2% at Rs 2130, Wipro has shed 1.6% at Rs 494 and Infosys has lost 1.2% at Rs 3015.

Among Pharma stocks, Sunpharma and Dr reddy's lab are down .9% and .5%, respectively

Oli and gas shares such as Reliance and ONGC declined .9% and .3%, respectively
 
Among other stocks, shares of Trent were up over 1.3% at Rs 1,057 after the company said that UK-based Tesco has completed purchase of part of the equity shares held by Trent in its wholly-owned subsidiary Trent Hypermarkets Ltd.

Shares of Wockhardt were down 3% at Rs 577 on reports that the US FOod and Drug Administration has discovered that the quality control measures at its US plant are not followed as per the prescribed guidelines.