Nifty hovers around 7,750; RIL, ITC gain 1%

Markets are trading marginally positive amid choppy trades supported by financial shares and index heavyweights like ITC and Reliance Industries.

By 13:35 pm, the S&P BSE Sensex rose 86 points at 25,316 and the Nifty50 gained 20 points at 7,751.

Top gainers are NTPC, Tata Motors, ICICI Bank, Reliance Industries and ITC.

Shares of sugar companies were under pressure and trading lower by up to 9% on concerns of lowering import duty on sugar and banning exports of the sweetener.

Dalmia Bharat Sugar (down 9% at Rs 85), Balrampur Chini Mills (7% at Rs 102), Thiru Arooran Sugars (7% at Rs 56), Ugar Sugar Mills (6% at Rs 28.50), Uttam Sugar Mills (6% at Rs 48.25), Oudh Sugar Mills (6% at Rs 76), Rajshree Sugars & Chemicals (6% at Rs 44) and were down more than 5% on the BSE.

Tata Power's scrip moved up by 3% after its consolidated net profit more than doubled to Rs 360.25 crore for the quarter ended March 31.

Shares of Monsanto India surged over 7% after the government withdrew a notification capping royalty fee for new genetically-modified (GM) seed technology amid opposition from the crop biotech industry.

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Updated at 10:55 am

Benchmark indices continue to trade in narrow range as investors has turned cautious ahead of the May F&O expiry due on Thursday.

Meanwhile, investors in emerging markets, including India are worried that higher interest rates in the US will drain liquidity from emerging markets and redirect it to developed economies.

By 10:55 am, the S&P BSE Sensex inched up 2 points at 25,232 and the Nifty50 gained 3 points at 7,734. Broader markets are trading marginally lower with BSE Midcap and Smallcap indices down 0.2%-0.3%.

Top gainers from the Sensex pack are NTPC, Tata Motors, RIL, ICICI Bank and ITC, all surging between 1%-3%. BHEL, ONGC, Sun Pharma, SBI and L&T are down 1%-2%.

BHEL has edged lower by 1.5% after the Bombay Stock Exchange (BSE) announced changes in the constituents of its indices as part a semi-annual reconstitution of the indices. Power Grid Corporation of India will replace BHEL in Sensex with effect from June 20, 2016.

ITC has extended yesterday's gain and is up 1% BSE after reporting a better-than-expected performance for the quarter ended March 31, 2016 (Q4FY16). ITC had declared a bonus issue of one share for every two shares held and has declared a final dividend of Rs 8.5 per share (including a special dividend of Rs 2 per share) for the current fiscal.

Among other shares, VRL Logistics is locked in lower circuit of 20% at Rs 315 on the BSE, after the company reported 32% year-on-year (YoY) decline in net profit at Rs 13.21 crore for the quarter ended March 2016 (Q4FY16).

Novartis India has surged 15% to Rs 818 on the BSE in early morning trade after the pharmaceutical company announced that its board will meet on Thursday, May 26, 2016, to consider a proposal for buyback of the company's equity shares.

Tara Jewels has tumbled 7% after the company reported consolidated net loss of Rs 5.88 crore in Q4 March 2016 compared with net profit of Rs 9.87 crore in Q4 March 2015.

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Updated at 9:30 am

Markets are trading in a narrow range in opening trades with Sensex and Nifty swinging between negative and positive zone.  
Investors in emerging markets, including India are worried that higher interest rates in the US will drain liquidity from emerging markets and redirect it to developed economies.
 
Besides, volatility is to be seen on the bourses as traders roll over positions in the futures & options segment from the near-month May series to June series due on Thursday.

By 9:30 am, the S&P BSE Sensex inched up 2 points at 25,234 and the Nifty50 dropped 3 points at 7,728.   Among broader markets, BSE Midcap and Smallcap indices are down 0.1% each.

“Last few days’ consistent slide has taken prices closer to the lower range extremity of the trading band that has now held forte through April-May. To this end, a swing higher towards 7,855 is favoured today, but a direct fall past 7,640 could significantly shift the momentum southwards,” according to a technical note by Geojit BNP Paribas.

Stocks specific action will continue to dictate the trend as the last batch of quarter results are unveiled this week.

The rupee slid for the ninth day as it depreciated 18 paise more to trade at over two and half month low of 67.67 against the dollar today, hit by sustained foreign fund outflows amid a lower opening in the domestic stock market.

Meanwhile, foreign portfolio investors (FPIs) sold shares worth a net Rs 65.60 crore yesterday, as per provisional data released by the stock exchanges.

Among overseas markets, Asia markets dropped today as speculation mounted that the Federal Reserve will raise interest rates as early as next month. US stocks finished lower yesterday, 23 May 2016, giving up early gains as the prospect that interest rates might rise as soon as next month weighed on utilities shares.

Philadelphia Fed President Patrick Harker said yesterday that a hike in June is appropriate unless data weakens, while St. Louis Fed President James Bullard said holding rates too low for too long could cause financial instability.

Oil prices were little changed in thin early Asian trade on Tuesday as a firmer dollar weighed on oil markets while a likely drawdown in US crude and gasoline stockpiles pointed to stronger demand ahead of the US summer driving season.

Back home, Cipla and Tech Mahindra are scheduled to post the quarterly results today.

Shares of Cipla are up 1% ahead of Q4 numbers. NTPC, ICICI Bank, HDFC, Tata Motors and Maruti Suzuki are up 0.4%-1%.

Maruti Suzuki India maintained its leadership position in the domestic passenger vehicle (PV) market in April with seven of its models featuring in the top 10 selling brands last month.

India's Tata Motors is in talks with a local manufacturer in Iran to set up a joint venture for assembling its petrol cars here, as it looks to tap the fast growing market that has just emerged from sanctions. The stock is up around 1%.

Tata Power's net rose sharply by 126 per cent to Rs 360.25 crore for the quarter ended March 31, 2016, due to strong operational performance, against Rs 159.14 crore of the corresponding quarter last year. The stock has gained 2%.

M&M, Lupin, Adani Ports, Sun Pharma and ONGC are down 0.7%-1.4%.

Oil and Natural Gas Corporation (ONGC) is facing a repeat of the Krishna Godavari (KG) basin fiasco in Iran, as lengthy negotiations on terms may drive it to a point where its discovered gas reserves in Farzad-B field in the Persian Gulf may be drawn out by neighbouring Saudi Arabia.

Drug maker Lupin’s stock has extended yesterday's losses by 1% due to concerns over the US Food and Drug Administration (FDA)’s observations on its Goa plant and the likely impact on its earnings owing to a rise in expenses in FY17.

Infosys today said it has bagged a five-year contract from Commerzbank, the second largest bank in Germany. Shares of Infosys are down 0.4%.

Among other shares, Novartis India has surged 15% to Rs 818 on the BSE in early morning trade after the pharmaceutical company announced that its board will meet on Thursday, May 26, 2016, to consider a proposal for buyback of the company's equity shares.