Markets move sideways
Auto stocks lead gains
Markets moved sideways with the Sensex up 82 points at 17,682 and the Nifty hovered around the 5,360 levels. Auto, FMCG and IT indices were the top sectoral gainers.
Bharti Airtel shares dropped to a two-year low, extending a rout after banks including Goldman Sachs and Standard Chartered downgraded their ratings for India's top telecoms carrier following its poor earnings results this week.The stock was the top Sensex loser, down 4% at Rs 263.
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(Updated at 9:40 hrs)
Markets started the day in the green tracking firm Asian cues. At 9:40am,the Sensex was up 71 points at 17,672 and the Nifty edged up 21 points at 5,359. Meanwhile, Index of Industrial Production (IIP) data for the month of June due later in the day today will be keenly watched.
The broader markets too opened in line with the benchmark indices, gaining nearly 0.4% each.
Rupee opened higher tracking gains in risk assets in Asian trade. Pair at 55.21/22 versus 55.42/43 Wednesday local close. Traders will watch for June factory data at 11 am, which, if throws up a positive surprise, may lead to rupee gains on back of a stock rally.
Global shares lost steam on Wednesday and traded little changed, while the euro fell as a lack of details prompted investors to tone down optimism for early central bank action to tackle the euro-zone debt crisis.
The Dow Jones industrial average and the Standard & Poor's 500 Index ended flat.
Asian shares rose to a three-month high on Thursday after a drop in Chinese consumer inflation left room for further policy easing, while Australia's labour market improved. The new indicators were published against a backdrop of guarded investor optimism for decisive official action to tackle the euro zone debt crisis.
MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.7 percent, extending gains for a fourth session in a row. Australian shares extended gains to 0.3 percent from around 0.1 percent after data showed employment rose and the jobless rate ticked down in July.
Back home, the Nifty can seek support around 5,320 – 5,310 and face resistance around 5,355 -5,365 levels, technical analysts suggest.
The broader markets too opened in line with the benchmark indices, gaining nearly 0.4% each.
Among the sectoral indices, Auto, Realty, PSU and Power indices gained 1% each in the opening trades. IT, FMCG, Bankex and Metal indices up 0.5-0.6% were the other notable gainers. Teck index flat with a negative bias was the only index in the red.
Bharti Airtel continued to its downward spiral opening in the red for the second consecutive day losing 4% along with HDFC and Tata Steel down 1% and 0.3% respectively. These were the only losers among the Sensex stocks.
Auto majors like Mahindra & Mahindra, Tata Motors and Bajaj Auto which gained between 1-4% were the top gainers followed by NTPC, Coal India, Gail India, BHEL, ICICI Bank, Tata Power and TCS all adding 1% each.
Among other stocks, Cairn India dipped 4% to Rs 313 after the company said its MD and CEO, Rahul Dhir, has decided to step down effective August 31, 2012 to pursue his entrepreneurial interests.
The market breadth was positive on the BSE. 874 stocks advanced while 492 stocks declined.