Markets range bound; Nifty hovers around 7,850

Benchmark indices continued to trade in a narrow range after the first hour of trade as losses in IT and pharma stocks capped impressive gains in L&T and ITC shares.

At 10.30 AM, Sensex is trading at 26,243  with a loss of  28  points while Nifty is trading at 7,841 with a loss of 10 points.

In the broader market, BSE Mid cap is down 0.1%  and Small cap is flat.

The market breadth is positive with 1071 advance against 972 declines.

manwhile, IMF has increased India's growth projection for FY15 to 5.6% from 5.4%, while cutting global growth forecast from 3.4% to 3.3%

Rupee is holding steady and is trading at 61.43 against US Dollar. The weakness in the domestic stock markets are offset by the positive growth forecast for India from the International Monetary Fund.
 
Asian markets are trading lower on Wednesday amid growth concerns in China. Further, China's services sector growth slipped in September as new business cooled, a private survey showed on Wednesday, reinforcing signs of a slowdown in the world's second-largest economy. The services purchasing managers' index (PMI) compiled by HSBC/Markit pulled back to 53.5 in September from a 17-month high of 54.1 in August.

Shares in Japan are down on the back of a stronger yen. The benchmark Nikkei is down 1.3%. Hang Seng has slipped 0.7% while shares in Shanghai Index  is trading with a gain of 0.3%. Further, Straits Times is  down 0.4%.

Among sectors, BSE IT is the biggest loser declining around 2.5% while Healthcare has lost around 1.5%. Shares of information technology (IT) and pharmaceutical companies are under pressure, falling by upto 3% after the International Monetary Fund (IMF) cut its outlook for global growth. BSE Bankex, Capital Gods and OIl & Gas have gained close to 0.5%.

L&T is biggest gainer with surging around 2%. Competition Commission has cleared L&T Technology Services' proposed acquisition of IT company Dell International Services India certain assets related to engineering services business.

ITC and Tata Motors are other big gainers with advances around 1%.

Bank shares are in demand with SBI leading the pack with 1.2% gains. Axis Bank, HDFC bank and ICICI Bank have gained 0.4-0.7% each. Finance Secretary had earlier declared government's intention to allow Public Sector banks to tap markets to procure funds required for the aditional capital under Basel III.

Maruti Suzuki has gained 0.3%. Maruti Suzuki India has  announced that the company's production rose 26.17% to 1.16 lakh units in September 2014 over September 2013.

Infosys has lost around 3%.  Investors will keenly watch Infosys' commentary regarding changes in its strategy under the new CEO, Dr. Vishal Sikka, when the company unveils its Q2 September 2014 results on Friday.

Pharma stocks are under pressure after 14 generic drug manufacturers were asked to submit detailed information related to price hikes in the US. Sun Pharma has lost around 2% while Dr Reddy and Cipla have lost moe than 2.5%.

___________________________________
(Updated at 9:45AM)

After a nervous start tracking weakness in global peers, the markets continue to trade range-bound with marginal gains.

At 9:45am with the S&P BSE Sensex hovering at 26,233 levels while the CNX NIfty is trading at 7835 levels.

In the broader market, BSE Mid cap and Small Cap are trading with loss of about 0.2%

Market breadth is marginally positive with 836 advances against 819 declines.

Among Sensex stocks, Dr Reddy's Laboratories, Sesa Sterlite, Sun Pharma, Cipla, Infosys, Hindalco and Tata Steel are aomng the top losers that slipped between 0.9 - 2.5%. On the other hand, Larsen and Toubro, NTPC, ONGC, Mahindra and Mahindra, ITC and Hindustan Lever have moved up between 0.7 - 1.3%.

"The Sensex has to cross and hold above 26,500-26,555 zone to see the up move towards 26750 levels. On downside immediate support exists at 26,250-26,200 and below that profit booking may drag the index towards psychological 26,000 levels," points out a report from Anand Rathi Research.

Later in the day market movement is likely to get affected by the minutes of the Forward Open Market Committee's last policy meeting.

“The global correction that is happening is finally catching up with Indian markets. There are worries regarding global liquidity, with the US stimulus programme ending and talks of an interest rate hike,” said Hemant Kanawala, head of equity, Kotak Life Insurance.

The WEO however, is bullish on the growth outlook of India. It revised growth forecasts of India for this financial year from 5.4% to 5.6% while attributing its new stance to  the favourable policies of the National Democratic Alliance government. Next year forecast remains at 6.4%.

“India has recovered from its relative slump and, thanks in part to policy and a renewal of confidence, growth is expected to exceed five per cent again,” IMF chief economist Olivier Blanchard said in a statement released by the Fund on Tuesday.

Global markets

Asian markets were trading lower on Wednesday amid growth concerns in China. Further, China's services sector growth slipped in September as new business cooled, a private survey showed on Wednesday, reinforcing signs of a slowdown in the world's second-largest economy. The services purchasing managers' index (PMI) compiled by HSBC/Markit pulled back to 53.5 in September from a 17-month high of 54.1 in August.

Shares in Japan were down on the back of a stronger yen. The benchmark Nikkei was down 1.5%. Hang Seng slipped 0.8% while shares in mainland China were trading marginally lower. Further, Straits Times was down 0.5%.

US stock ended lower on Tuesday amid growth concerns in Germany industrial output in August slumped to 4%, the highest fall in 5 1/2 years. The Dow Jones ended down 272 points at 16,719.39, the broader S&P 500 slipped 30 points to close at 1,935.10 and the tech-laden Nasdaq ended down 70 points at 4,385.20

Sector and Stocks

BSE Health, IT and Teck are the biggest losers with declines around 1.5% while BSE Capital goods and FMCG have gained the most.

Pharma stocks are under pressure after 14 generic drug manufacturers were asked to submit detailed information related to price hikes in the US.

Sun Pharma,Dr Reddy  and Cipla have lost around 2% to 3%.

L&T is up aound 1.7%.On Tuesday, the infra major had bagged a  a contract worth Rs 1600 Crores from UP governmnent.

M&M is gainig around 1%. Market analysts have termed the finacial impacts of its deal with Peugeot to be limited and atleast  not imminent.

Despite decline in global crude prices ONGC shares are up 1%. The company's wholly owned subsidiary ONGC Videsh reaffirmed its interests in Iranian Farsi offshore block, now named Binaloud.

Among other shares,  National Buildings Construction Corporation (NBCC) is trading higher by nearly 2% in early morning deals on National Stock Exchange (NSE) after the company said it has received constructions order worth of Rs 338 crore from IIT Kanpur.