Markets extend losses; Nifty slips below 8,400

NTPC, SBI, M&M, ONGC and Wipro are the top losers

Benchmark indices have extended losses amid weakness in select banks, information technology and FMCG shares. However, metal shares have bucked the weak trend and managed to post significant gains in an otherwise subdued market.  
 
At 12:57PM, the 30-share Sensex was down 175 points at 27,715 and the 50-share Nifty was down 39 points at 8,391.  
 
In the broader market, both the BSE Midcap index, up 0.6% and Smallcap index, trading flat have performed better than the front-liners. Market breadth in BSE is positive with 1,322 advances against 1,194 declines.    
 
Markets had a positive opening on improved sentiments following the statement by MoS Finance Jayant Sinha that gave some clarification on the contentious Minimum Alternate Tax (MAT) issue. The minister said that foreign institutional investors (FIIs) from countries with a double taxation avoidance agreement (DTAA) specifically exempting such investors from capital gains tax may not be required to honour MAT demands from the income tax department.
 
The first monsoon forecast by the Indian Metrological Department (IMD) has predicted below normal rainfall during the season for the second straight year in 2015 primarily due to the build-up of El Nino conditions in the Pacific Ocean. Disruptions in the normal rainfall is likely to put further pressure on the agriculture sector which is already reeling under the impact of unseasonal rains that have damaged crops in parts of country and may lead to higher food inflation making further rate-cuts by Reserve Bank of India less likely.
 
Buzzing Stocks
 
10 out of the 12 sectoral indices of BSE are in red. BSE Capital Goods index down 1% is the top loser followed by BSE Power and BSE Oil & Gas indices, down 0.6% each. BSE Metal index up 1.4% is the top gainer.  
 
Tata Steel is the top gainer in noon trades and has gained over 4%. Vedanta (earlier known as Sesa Sterlite) has gained 0.6% and Hindalco is up 0.1%.
 
Maruti Suzuki, up 1.1% and CIL, up 1.5% are other major gainers.
 
Select IT shares remain under pressure for the seventh straigth session over concerns about quarterly earnings. Infosys has shed 0.8% and Wipro is down 1.4%. However, TCS is trading higher by 0.6%.
 
According to reports, M&M is planning to invest Rs 2,500 crore in expaniding its existing auto manufacturing facility in Telangana., which will increase its capacity to 1.5 lakh vehicles per year. The stock has slipped over 2%.
 
Tata Motors has lost nearly 1% and Hero Motocorp is down 1.3%.
 
SBI down 1.8%, ICICI Bank down 0.7%, ITC down 0.8% and from the pharma pack Sun Pharma down 1.2% and Dr Reddys Lab down 1.4% are other major losers.