Markets flat; Technology stocks surge

Markets are trading flat in a tight range in the absence of any directional cues. Also, market participants have become cautious ahead of the holiday-shortened week as markets will remain closed on Thursday and Friday for Mahatma Gandhi Jayanthi and Dussehra, respectively.

 

At 1.25 PM, the 30-share Sensex is down 40 points at 26,590 and 50-share Nifty has lost 13 points at 7,952.

 

However, the midcap index is trading flat and the smallcap index is down 0.3%.

 

The market breadth is weak on the BSE with 1,195 shares advancing and 1,447 shares declining.

 

On Monday, September 3, 2014 FIIS were the net buyers with net sales of around 232 crores.

 

Local Currency:

 

Rupee is trading at 61.75. The rupee fell as low as 61.95 per dollar on Wednesday, its weakest level since March 4, as traders unwound positions ahead of holidays and at a time when the US Dollar is gaining globally.

 

Asian Markets:

 

Worries about Hong Kong protests weighs heavily on Asian markets. Hong Kong's Chief Executive Leung Chun-ying faces a deadline to respond to demands for his resignation and for free elections in the city as pro-democracy protests entered a sixth day. 

 

On account on National Day Chinese markets are closed today. On September, 30 2014, Shanghai Composite closed with a gain of 0.2% while Hang Seng registered a decilne of 1.2%

 

On a positive note, as per official release, China official PMI data is around 51.1 suggesting steady domestic demand benefiting large factories.

 

Choppy trade at Nikkei, trading flat at 16,166, comes on back of a weak yen supporting sentiment while mixed data from the Bank Of Japan's tankan survey- improved business confidence among manufacturers diluted by he lingering impact of hike in slaes tax  on services sector- dragging te market. Meanwhile, Strait Times Index has lost 0.3% and is trading at 1,592.

 

Sectors and Stocks:

 

On the sectoral front, BSE IT is the top gaining index up over 15 followed by Teck and Power indices. However, FMCG, Healthcare, Oil & Gas and Realty indices are trading lower up to 1%. Bankex is down 0.5%.

 

In the oil and Gas space, ONGC, GAIL and RIL have lost between 1-2%. Brent oil futures edged up above $95 a barrel as a positive Chinese factory survey helped the crude benchmark start October firmer after it fell to its weakest level since 2012 in the previous session.

 

Maruti Suzuki is the top loser of this hour and is down 2.5% even though the company country's largest carmaker Maruti Suzuki India today reported 4.6% increase in its total sales in September 2014 at 1,09,742 units as against 1,04,964 units in the same month previous year. 

 

FMCG majors ITC and HUL are trading 1.6% and 1% lower during the noon trades.

 

The financial shares are trading weak post the RBI’s neutral stance on key policy rates. HDFC twins, SBI and ICICI Bank have lost between 0.3-1%.

 

Healthcare shares which rallied in the early trades are trading down on profit taking. Cipla, Sun Pharma and Dr Reddy’s Lab are down between 0.1-0.55.

 

On the flip side, technology stocks are trading higher on the back of depreciating rupee. TCS is up 1.6%.

 

 Wipro is up 3% after the government approved the proposals of Wipro Ltd and Mumbai Futuristic Economic Zone to set up SEZs in Andhra Pradesh and Maharashtra. 

 

Infosys has gained nearly 1.5% after the company said it is extending its relationship with Oracle to enhance support for a range of innovative solutions and services on new technology platforms. 

 

Shares of Hero Motocorp have climbed nearly 2% to Rs 2,890 on the BSE on the back of strong sales in the month of September. Tata Motors is up nearly 1%.

 

Coal India, M&M and L&T are some of the notable names in green among others.