Markets erase gains; Index heavyweights weigh

Markets have erased their early gains and are now trading with mild gains led by buying demand in consumer durables and pharma shares. However, the selling in index heavyweights such as HDFC twins and Infosys has arrested the gains.

Meanwhile, the growth in India’s service sector has slowed down for the month of September. The Nikkei/Markit Services Purchasing Managers' Index eased to 51.3 in September from August's 51.8 but marked its third straight month above the 50-level that separates growth from contraction.

By 11:40 AM, the Sensex was higher by 25 points at 26,810 and the Nifty has slipped 1 point at 8,118.

Among broader markets, BSE Midcap and Smallcap indices are up 0.2-0.6%. Markets breadth is positive with 1,400 shares advancing and 899 shares declining.

On the currency front, the rupee is trading flat against the US dollar at Rs 65.28.

CRUDE OIL

Oil prices held above $46 a barrel in Asia today ahead of a report on US commercial crude inventories, a closely watched indicator of demand in the world's top consumer.

A decline in US drilling activity has supported prices recently, fuelling hopes a fall in production would help ease the global crude supply glut.

SECTORS & STOCKS

Sectorally, BSE Consumer Durables index is leading with 2.2% gains followed by Oil&Gas, Healthcare and Metal indices. On the losing side, BSE IT and Bankex indices have lost 0.2-0.8% each.

Tata Motors has extended gains for second straight day after its Jaguar Land Rover (JLR) units' United States sales surged 61% in September, aided by record demand for sport utility vehicles (SUVs).  The stock has jumped over 3%

Sun Pharmaceutical has announced its US subsidiary, Ranbaxy Pharmaceuticals, and other partners have entered into a settlement, ending the patent litigation with drug maker Actavis over anti-acne drug Absorica (isotretinoin capsules). The stock is up nearly 2%.

Consumer Durables shares are shining bright ahead of festive season. Rajesh Exports, PC Jewellers, Titan, Bajaj Electronics have all gained between 1-6% each on the Sensex.

Oil and Gas pack is rallying ahead of US commercial crude inventories report. ONGC, Reliance Industries, BPCL, HPCL, OIL, IOC have all jumped 0.4-2%

Dr Reddy’s Laboratories trading higher by 2.4% at Rs 4,284 on the BSE after the drug maker said that the promoter buying shares of the company through open market.

Shares of ITC are trading higher by 1% at Rs 333 on the BSE after the company decided to foray into the dairy segment with the launch of its new product Aashirvaad ghee this Diwali

On the flip side, HDFC has reduced home loan rates by 25 basis points to 9.65%. The lender will offer an additional discount of five bps to women. The stock has dipped nearly 1%

Within two months of its launch, Maruti Suzuki’s premium diesel crossover S-Cross is being offered with incentives of up to Rs 1 lakh, indicating a challenge in the vehicle’s acceptability at the launch price of Rs 8.34 lakh to Rs 13.74 lakh. Launched less than a year after the company unveiled its now-successful premium sedan Ciaz, S-Cross is Maruti’s second premium offering. The stock has slid 1%

Among other shares, J Kumar Infraprojects and ITD Cementation India have rallied between 1-5% on the BSE on reports that these companies have emerged L1 bidders for Mumbai Metro rail blocks.