Markets pare gains in noon trades, ITC weighs

Markets pared most of their gains weighed down by selling pressure in FMCG major ITC after the finance minister in his Budget raised the excise duty on cigarettes by 18%.

At 1:06PM the Sensex was up 37 points at 18,899 and the Nifty was up 10 points 5,704.

In the Asian region, stocks in China and Hong Kong remained subdued after China's manufacturing output in February grew at a marginal space. The Shanghai was down 0.2% and the Hang Seng slipped 0.4%. Among other markets, Nikkei, Straits Times and Taiwan Weighted were up 0.04-0.8% each.

Union Finance Minister Palaniappan Chidambaram in his Budget annoucement on Thursday tried to perform a delicate balancing act by both responding to the political requirements of a pre-election-year Budget and the economic compulsions of fiscal consolidation and investment revival.

The sectoral indices on the BSE were led by Consumer Durables, Power, Capital Goods and Auto. Realty, FMCG and Healthcare indices were among the top losers.

ITC was among the top losers on the Sensex down 1.5% after the proposed hike in excise duty by 18% on cigarettes. Other Sensex losers include Bharti Airtel, Reliance, TCS and HDFC Bank.

Healthcare stocks Dr Reddy's Labs and Sun Pharma were down after no allocation were made in the Budget towards the health sector.

Hero MotoCorp is trading 1.7% down, in an otherwise firm market on reports that the workers at company’s Gurgaon unit went on hunger strike from Thursday to demand higher wages.

Among other shares, Suzlon Energy is the top gainer from the mid-cap pack, up 17% to Rs 18.75 after hitting a new low yesterday on promoter's stake sale news. The stock had tanked 44% on Budget day. CORE Education & Technologies has zoomed over 11% at Rs 61.

United Spirits has rallied 6% to Rs 1,943 after Competition Commission of India (CCI) has approved UK major Diageo Plc's proposed majority stake purchase in the company.

On the losing side, Strides Arcolab is the top loser from Sensex pack, down nearly 6%. The company has entered into a definitive agreement for the sale of its specialties subsidiary, Agila Specialties Private Limited, to US-based Mylan Inc

The broader markets was trading mixed with the BSE Mid-cap index up 0.1% and BSE Small-cap index down 0.2%.

Market breadth was weak with 1,373 losers and 1,194 gainers on the BSE.