Markets choppy; Hindalco up 3%

The benchmark indices continue to swing between the positive and negative territory amid choppy trades. Losses in select auto shares and oil and gas shares limit gains during the late noon trades.

 

At 2.35 PM, the barometer index, Sensex is down 19 points at 25,530 while Nifty is up 5 points at 7,629 levels.

 

The BSE Mid-cap index and Small-cap indices have gained over 1%.

 

Asian Markets

 

 Asian equities dipped on Thursday, giving up earlier modest gains as Chinese shares fell, while the euro probed recent lows against the dollar amid speculation the U.S. Federal Reserve was tilting towards tighter monetary policy.

 

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The rupee fell marginally by two paise to 60.14 against the dollar in early trade on Thursday on increased demand for the US currency from banks and importers. 

 

Meanwhile, Meanwhile, Overseas investors bought Indian shares worth 6.21 billion rupees on Wednesday, provisional exchange data shows

 

The revival of monsoon rains in the grain bowl of northwest and central regions should help speed up sowing of main summer crops such as rice, corn, soybean and cotton.

 

Sectors & Stocks

 

On sectoral front, BSE Consumer Durables index is the top gaining index up by 2% followed by BSE Metal IT, Teck , Power, Capital goods and indices. In addition, BSE FMCG index is trading flat with a positive bias. In contrast, BSE Realty  is the top losing index, followed by oil & gas and Auto indices lower between 0.2-1%. Bankex is down 0.2%.  

 

Metal pack is witnessing fresh buying with Tata steel being the biggest gainer of this hour up 3% followed by Hindalco, Coal India  and Sesa Sterlite up between 1-2.5% on the back of positive Chinese GDP growth data .

 

Wipro and Infosys added 0.2% and 1.4% each . However, TCS has lost 0.4% on caution ahead of the quarterly results due later during the day.

 

Capital goods shares are trading in green after RBI announced incentives to raise long term bonds for infrastructure financing. L&T and BHEL are up between 0.2-1%

 

The power shares which were trading in red during the morning trades have slipped in the positive territory on fresh buying. NTPC and Tata Power are up 1.5%

 

Among other notable gainers are Bahrti Airtel, Cipla, Tata Motors and HUL

 

On the flip side, Bank shares which had firmed up post the RBI measures for infra-bonds and the realty secto are witnessing profit taking at higher levels. ICICI Bank, Axis Bank, HDFC Bank and SBI are down  between 0.3-1%.

 

Oil prices rose after a bullish US stockpiles report raised hopes of resurgent demand in the world's top crude consumer. The reports also suggested that several plants in United States are using more crude to increase gasoline production to keep up with the summer driving season. Thus, ONGC, RIL and GAIL have lost between 0.5-2%

 

In the auto pack, Bajaj Auto is down 2.5% after weak first quarter earnings. The two-wheeler major reported a flat growth in the first-quarter standalone net profit at Rs 740 crore, due to higher expenditure including employee cost. Analysts on an average had expected profit of Rs 838 crore in April-June (Q1) quarter. The country’s second largest two-wheeler maker had profit of Rs 738 crore in the same quarter last year. 

 

 Mahindra and Mahindra (M&M) has dipped almost 3% after a huge block deal executed on the Bombay Stock Exchange (BSE). In addition, Maruti Suzuki lost 1%

 

In the Midcap and Smallcap space, City Union Bank has rallied 7% to Rs 81 on reports that the bank’s qualified institutional placement (QIP) issue has been subscribed threefold. The bank aimed to raise around Rs 350 crore by diluting 7% stake.

 

Ahluwalia Contracts has surged nearly 10% to Rs 126, extending its 10% rally in past two trading sessions on NSE, after securing construction orders worth of Rs 615 crore.

 

The market breadth is marginally positive on the BSE with 1,630 shares advancing and 1,187 shares declining.