Markets pause; Axis Bank, Infosys up 1%

Top gainers on the Sensex are Infosys, Axis Bank, SBI, Wipro and RIL are trading higher by 0.5-1.2%

Markets have taken a breather after a free fall for two straight days as positive cues among global peers and decline in crude prices boost the trading sentiments. 

Gains in technology shares on declining rupee and Axis bank after the Reserve Bank of India (RBI) lifted the restrictions placed on the purchase of shares of the bank by foreign investors have lifted the indices higher.
 

At 10.50 AM, the Sensex was down 24 points at 26,814 levels and the Nifty has lost 6 points at 8,129 level
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Top gainer on the Sensex are Infosys, Axis Bank, SBI, Wipro and RIL are trading higher by 0.5-1.2%.
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(updated at 9.15 AM)

After two days of steep fall, markets have opened on a flat note  tracking strength in the global peers amid drop in crude prices. However, persistent sell off by the foreign investors, rise in bond yields in US and Germany coupled with fears of rise in inflation due to inadequate rains are capping the gains on the exchanges.

At 9.15 AM, the Sensex was down 7 points at 26,830 levels and the Nifty has lost 10 points at 8,125 level. The rupee is quoting at 64.2 against the US dollar in the early trades tracking weakness in the domestic equities.

Technical analysts say that the markets may remain under pressure till the Sensex doesn’t move back move 27,000-27,150 levels.

"On downside if it fails to hold 26,700 levels then weakness may continue towards its next support of 26,400 levels. On the upside, if it manages to cross and hold above 27,150 then only bulls would be back to play the bounce back moves in the market," points out a morning note from Anand Rathi Research.

"USDINR is expected to open between 64.05 – 64.15. It can give a rise upto 64.30 during the day. It is expected to trade with a sideways to down trend during the day. It should be traded in the expected range of 63.85 – 64.30," says Mohammed Azeem Gaziani, technical analyst for currencies at Nirmal Bang.

Meanwhile, foreign brokerage CLSA has cut its year-end target for the BSE exchange’s benchmark Sensex index by 3% to 28,500, on rising concern over delayed pick-up in growth amid a rural slowdown.

GLOBAL MARKETS

US stocks rose on Wednesday, helped by optimism that Greece was close to an agreement to avoid default and as further gains in bond yields lifted financials.

The S&P financial index climbed 0.7% and was among the day's top sector performers as US benchmark Treasury debt yields jumped to seven-month highs, extending recent gains.

Japan's Nikkei and South Korea's Kospi both gained 0.3%, while Australian shares added 0.2%. MSCI's broadest index of Asia-Pacific shares outside Japan was little changed.

With Reuters input

KEY STOCKS

On the sectoral front, barring BSE Auto index which is down 0.5%, BSE IT, Capital Goods, Oil & Gas, Power  and Teck indices are trading higher up to 0.7%.

Shares of Reliance Industries are trading higher by 0.6% ahead of the AGM meet later during the day.

Telecom major Bharti Airtel has raised $1 billion, or around Rs 6,400 crore, by selling bonds to global investors. However, the stock is trading with flat.

The technology pack is trading in the positive territory on the back of a depreciating rupee. TCS, Infosys and Wipro are trading higher up to 1%.

Infosys has won six major deals this quarter that would contribute more than $50 million in annual revenue. Infosys currently has about 15 $100-million customer accounts. The stock is up over 1%. 

Vedanta has acquired another 4.98% stake in Cairn India worth Rs 2,060 crore. The stock is trading with marginal gains.

Axis Bank is up 1.5% after RBI announced that the restrictions placed on the buying of shares of Axis Bank by foreign institutional investors (FIIs)/Registered Foreign Portfolio Investors (RFPIs) have been withdrawn with immediate effect as the total shareholding of FIIs/RFPIs in the private sector bank has gone below the threshold limit. 

Cipla has received approval from United States Food & Drug Administration (USFDA) for an innovative formulation Lopinavir/ritonavir (LPV/r) 40mg/10 mg oral pellets  for pediatric specific treatment for infants. The stock is up 1%.

ICICI Bank turns ex-dividend today, 4 June 2015, for dividend of Rs 5 per share for the year ended 31 March 2015. The stock is trading lower by 2%.

Suzlon Energy has secured 90 MW order from ReNew Power. Suzlon will install its S97 90m WTGs with rated capacity of 2.1 MW at Ellutla site in Ananthapur diatrict, AP. The stock is up over 1.4%.