Markets open weak ahead of SC verdict on coal blocks

The main losers on the Sensex are Hindalco, Infosys, ICICI Bank and Tata Motors

Markets have started the trading session marginally weak ahead of ahead of the Supreme Court's decision on coal blocks allocations later today.

By 9:30, the Sensex was lower by 18 points at 27,300 mark and the Nifty dipped by 8 points at 8,165 levels.

Meanwhile, foreign portfolio investors (FPIs) bought shares worth a net Rs 1162.98 crore on Monday, as per provisional data from the stock exchanges.

RUPEE

The rupee is weaker at 60.44/45 versus its Monday's close of 60.29/30. Dollar trades at 14-month highs against a basket of major currencies early on Tuesday.

The index of the dollar against six majors currently up 0.27%.

GLOBAL MARKETS

The U.S. dollar was holding broad-based gains in Asia on Tuesday in a boon for shares of Japanese exporters but a burden for oil, gold and stocks in the energy majors.

As the dollar finally broke to a six-year peak on the yen and a one-year top on the euro, Brent oil sank to 16-month lows while gold carved out a three-month trough.

A falling yen tends to be viewed as positive for Japanese exporters and corporate profits, and helped lift the Topix 0.2 percent to 1,301. That was within a whisker of this year's peak at 1,308.08 and a break there would put it on ground last trod in July 2008.

Markets elsewhere in the region were steady with MSCI's broadest index of Asia-Pacific shares outside Japan down a slight 0.1%.

Despite market concerns over China's economy, stocks there have been buoyed by talk of more stimulus and reform measures.

SECTORS & STOCKS

BSE Metal index has slipped by almost 0.5% followed by counters like IT, Banks, Capital Goods and Consumer Durables, all dipping between 0.1-0.4%. However, BSE Healthcare, FMCG and Auto indices have gained between 0.1-0.3%.

The main losers on the Sensex are Hindalco, Infosys, ICICI Bank, Tata Motors, Tata Steel, Sesa Sterlite and Bharti Airtel.

Metal stocks are in focus with the apex court scheduled to announce its decision on coal block allocations.

On the gaining side, Cipla, TCS, GAIL, Tata Power and NTPC have gained between 0.6-1.5%.

Drug maker Cipla has gained nearly 1.5% to Rs 572 on the BSE after the company on Monday announced commercial collaboration with UK-based S&D Pharma in the Czech Republic and Slovakia.

The broader markets are outperforming the benchmark indices- BSE Midcap and Smallcap indices have gained between 0.3-0.4%.

The market breadth in BSE remains positive with 1,048 shares advancing and 568 shares declining.