Nifty hovers around 8,350; Tata Motors, ITC decline 1%

Markets are trading lower amid choppy trades dragged by select capital goods, banks and FMCG shares.

By 9:55, the Sensex was lower by 63 points at 27,581 and the Nifty has slipped by 17 points at 8,353.

The top Sensex losers are Tata Motors, Sun Pharma, BHEL, ITC, NTPC and Hindalco.

Technical analysts say that the Nifty needs to cross and hold above 8,380 to witness the up move towards 8,450 and 8,480 levels.

"On the downside, if it fails to sustain 8,340 levels, then the index may witness profit booking towards 8,320-8,280 zones. Traders are required to maintain cautious approach ahead of the Derivatives expiry week and GDP data scheduled this Friday," said a morning note from Anand Rathi Research

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Updated at 9:25

Markets have started the session on a flat note tracking mixed global cues. Markets may remain volatile this week ahead of expiry of the May derivatives contracts on Thursday.

By 9:25, the Sensex was lower by 46 points at 27,598 and the Nifty has slipped by 14 points at 8,355.

However, the broader markets are outperforming the benchmark indices- BSE Midcap and Smallcap indices are up 0.1-0.2%.

The market breadth is positive. Out of 1,215 stocks traded on the BSE, there are 661 advancing stocks as against 512 declines.

The Sensex fell 313 points or 1.1% at 27,643 and the Nifty has shed 88 points or 1% at 8,370 on Monday to mark its closest level since 19 May 2015.

Meanwhile, the Modi-led NDA govt has completed one year in office today, May 26,2015. According to a Bloomberg report, the Sensex has rallied 13% in the past year, compared with a 0.7% retreat for the MSCI Emerging Markets Index.

Foreign investors boosted their holdings in Indian equities by $15.3 billion in the past year, though May is poised to record the first monthly outflows of 2015.

The rupee has retreated 7.9% against the dollar in the past 12 months and this is its worst performance in the first year of any prime minister since 1997, data compiled by Bloomberg shows.

RESULTS CALENDAR

BHEL, Tata Motors, Tech Mahindra, HPCL, Thermax, Dish TV, United Spirits and Simplex Infra will declare their Q4 results today.

GLOBAL MARKETS

Asian shares fell in early trading on Tuesday, while the dollar held near highs scaled in holiday-thinned trading in the previous session.

European shares marked a weak finish in thin trade on Monday, with many markets in the region closed for holidays. US markets were also closed for Memorial Day.

MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.2% in early trade, after eking out a late gain in the previous session.

Japan's Nikkei stock index edged up 0.1%, after logging seven straight gains and closing at a fresh 15-year high on Monday.

SECTORS & STOCKS

BSE FMCG, Healthcare, Bankex, Metal and Oil & Gas indices are trading marginally in positive zone. However, BSE Power and Realty indices are trading in negative zone.

BHEL and Tata Motors are trading lower by 1% ahead of the Q4 results. Other notable losers are NTPC, ONGC, Sun Pharma, ITC and Hindalco.

ITC has extended yesterday's fall. The company's March quarter results that were announced post market hours on Friday came in lower than expectations.

ONGC Videsh (OVL), the unlisted overseas arm of state-run petroleum explorer Oil and Natural Gas Corporation (ONGC), said its net profit for the financial year ended march (2014-15) stood at Rs 1,904 crore, a 57% slump as compared to the previous year (2013-14).

GAIL announced after market hours yesterday that as a first step to usher in commencement of project work on the first phase of Jagdishpur-Haldia Pipeline, Dharmendra Pradhan, Union Minister of State (Independent Charge) for Petroleum and Natural Gas inaugurated the project office in Patna yesterday. The stock is the top Sensex gainer, up over 1%.

Vedanta, SBI, Tata Steel, Axis Bank, M&M and Bharti Airtel have gained between 0.4-1%.

The Reserve Bank of India (RBI) is expected to go for a third cut in interest rates this year. The unanimous response to a Business Standard poll of 10 market participants was Governor Raghuram Rajan would reduce the repo rate by 25 basis points (bps) in the monetary policy review on June 2, as inflation was benign and there was a need to support growth.