Markets have a lacklustre start; Nifty hovers at 8,600

Gail India, Dr Reddy's and Wipro are leading the gains on the BSE, while Tata Steel and Vedanta are seeing pressure pressure.

The benchmark indices have opened on a subdued note in wake of the rally seen in the previous session and mixed trend in the global markets.

At 9.35am, the Sensex was at 28,510, higher by 5 points and the Nifty was at 8,638, up 4 points.

The broader markets are outperforming their largecap peers; the midcap index has gained 0.3% at 11,271 and smallcap index has strengthened by 0.7% at 11,763. The market breadth is also strong, with 1,110 advancing stocks as againt 399 declines.

The BSE Sensex had zoomed by more than 300 points and Nifty had settled comfortably above the technically crucial 8,600 mark in the previous session.

"On Wednesday, we witnessed a broad based rally in the market, which is an indication of the strength. Going forward, we expect the Nifty to continue its northward movement towards the next resistance zone of 8,680 - 8,700. On the flipside, 8,550 - 8,500 levels are seen as immediate support for the index," points out a morning note from Angel Broking.

There is likely to be a lot of stock-specific action as a deluge of companies would announce their Q1 results during the day. Among the bluechip companies, Wipro, Lupin, Bajaj Auto would unveil their quarterly numbers today.

The investors would also closely follow the monsoon session, which has been a near washout in the first two days. The government is looking forward to pass key legislations, including the controversial Land Acquisition Bill and GST Bill.

Bajaj Auto, Gail (India), Lupin, Biocon, Indian Bank, United Spirits, Wipro, Rallis India, TTK Prestige would announce their April-June quarter numbers.

GLOBAL MARKETS

Asian shares slipped early on Thursday after disappointing earnings from tech giants weighed on Wall Street, while the dollar rebounded on the back of upbeat U.S. economic data. Key indices in Japan, China, Hong Kong and Singapore were up y 0.5-1% each, while the Taiwan, South Korea and Indonesian markets had edged lower by upto 1% each.

Overnight, the Dow had shed 0.4% and Nasdaq had lost 0.7% due to poor results from tech sector leaders such as Apple.

MOVERS AND LAGGARDS

Gail India, Dr Reddy's and Wipro are leading the gains on the BSE. Index heavyweight RIL has extended its stupendous 4% gains of the previous session by another 0.7%. On the other hand, select metal stocks are witnessing selling pressure, with Tata Steel and Vedanta shedding 2% and 1% respectively. Hindustan Unilever and Infosys are the other significant losers on the BSE.

IDFC has turned ex-dividend for a dividend of Rs 2.60 per share and Motherson Sumi Systems has turned ex-dividend for a dividend of Rs 3 per share for the year ended 31 March 2015. IDFC has moved lower by 1% at Rs 154, while Motherson Sumi Systems is trading flat, with a positive bias at Rs 351.

RESULTS IMPACT

SKS Microfinance has soared by 2% at Rs 547 after reporting a 24% year-on-year (yoy) increase in net profit at Rs 61 crore for the quarter ended June 30, 2015 (Q1) as against Rs 49 crore in the year-ago quarter.

Ceat has zoomed 5% at Rs 818 after posting an increase in its consolidated net profit at Rs 121.01 crore for the first quarter ended June 30.

On the other hand, Bharti Airtel has edged lower by 0.7% at Rs 436 despte the fact that Bharti Infratel, the tower arm of Bharti Airtel, posted an increase of 24% in net profit at Rs 576 crore for the first quarter ended June this year