Markets drift lower; midcaps outperform

Information technology stocks are out of favour; the midcap and smallcap indices have gained around a percent each.

The benchmark indices are trading flat, with a negative bias, as they seem to be consolidating the gains of the previous two sessions. The Sensex is at 24,817, lower by 41 points and the Nifty is hovering around its crucial psychological support level of 7,400 at 7,408, down 8 points. The BSE sectoral indices are mixed, with metals, capital goods and banking counting among the gainers this morning, while IT and FMCG dragging the indices lower.

 

There is however, outperformance on the broader market front; the midcap and smallcap indices have gained around a percent each at 8,806 and 9,430 respectively. Banking names are hogging the limelight in the midcap banking space, having taken off from where they left on Credit policy day. IDBI has soared by 10% at Rs 107, Andhra Bank has jumped by 5.4% at Rs 105, Karnataka Bank has jumped by 3.9% at Rs 143 and Syndicate Bank has added 3.8% at Rs 166.

 

In the largecap space, the information technology pack is taking it on the chin in this session. TCS has weakened by 2% at Rs 2087, Wipro has shed 1.6% at Rs 486 and Infosys has lost 1.4% at Rs 2971.

 

On the other hand, metal stocks are on the buyer's radar for the second consecutive day. Hindalco has zoomed ahead by 3.3% at Rs 160 and Tata Steel has soared by 2.3% at Rs 537. The auto stocks are also witnessing buying interest; Bajaj Auto has strengthened by 1.9% at Rs 2006, Tata Motors has jumped by 1% at Rs 425 and Maruti has gained 1% at Rs 2367.

 

Fertizer stocks such as Tata Chemicals (up 1.8% at Rs 315) and Deepak Fertilisers (4.4% at Rs 152) are also seeing buying action this morning.

 

In stock-specific news, Biocon has raced ahead by 3.1% at Rs 456 on the BSE after its subsidiary Syngene International announced a five-year extension of its drug discovery and development collaboration with Bristol-Myers Squibb. 

 

National Fertilizers Limited (NFL) has zoomed 9.4% to Rs 44.6 on the BSE after posting a decline in net loss for the quarter ended March 31. The company posted a net loss of Rs 9.8 crore in the quarter ended March 2014 as against Rs 107.04 crore in the year-ago period.

 

The market breadth is strong. Out of 2552 stocks traded on the BSE, there are 1704 advancing shares as against 749 declines.