Markets pare gains; Nifty slips below 8,050

FMCG major ITC and engineering major L&T were the top losers

Markets pared early gains and were trading with marginal losses as investors booked profits at higher levels.

At 1:45pm, the 30-share Sensex was down 8 points at 26,551 and the 50-share Nifty was down 6 points at 8,045.

ITC, L&T and Lupin were the top Sensex losers.
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(Updated at 1:15pm)
Benchmark share indices continued to trade in positive terrain, amid firm global cues, with IT major leading the gains while banks gains after upgrade by global rating agency Moody's.

However, investors are turning cautious at higher levels awaiting further cues from the outcome of the Bihar elections.

At 1:15pm, the 30-share Sensex was up 67 points at 26,626 and the 50-share Nifty was up 16 points at 8,067.

In the broader market, the BSE MidCap and SmallCap indices were up 0.4-0.5% each. Market breadth was positive with 1,437 gainers and 1,010 losers on the BSE.

"Domestic markets are tracking global cues after sharp gains in the US on Monday. Further, buying is also seen in defensives sectors such as IT," said Kishen Gupta, senior analyst at CD Equisearch.

Meanwhile, Foreign Institutional Investors (FIIs) were net sellers to the tune of Rs 273 crore according to provisional stock exchange data.


EARNINGS CORNER

Adani Power, DLF, IndianOil, GAIL, Tech Mahindra,  Reliance Power and PVR are scheduled to announce their September quarter earnings today.

Meanwhile, Foreign Institutional Investors (FIIs) were the net sellers to the tune of Rs 272.67 crore as per the provisional stock exchange data.

ECONOMY

Growth in eight core sectors rose to four-month high of 3.2% in September 2015 because of sharp pick-up in fertiliser production and electricity generation. The eight core industries -- coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity -- comprising nearly 38 percent of India's total industrial production had grown at 2.6% in September 2014.

SECTORS & STOCKS

Except for Capital Goods and Consumer Durables indices all other indices were trading in positive zone led by IT index up nearly 1%.

IT majors Infosys and TCS were up over 1% each contributing the most to the Sensex gains.

Banking shares trimmed early gains. Moody’s on Monday said it expected a gradual improvement in the working environment as it upgraded its outlook for India’s banking system from negative to stable. ICICI Bank, Axis Bank, HDFC Bank and SBI rose between 0.2-0.5% each.

Tata Motors pared early gains and was down 0.5%. Soccer great Lionel Messi will become the face of Tata Motors' passenger vehicles portfolio. The Argentinian becomes the first brand ambassador of the company in its 70-year history.  

Maruti Suzuki was trading marginally lower after gains in the previous session. Domestic sales surged by 24.7 per cent during the month to 121,063 units, against 97,069 units in October last year.

Metal shares gained after rebound in global commodity prices. Hindalco and Vedanta are up between 1-2% each.

TVS Motor Company reported a 14% growth in sales for the month of October 2015 with total sales increasing from 241,044 units recorded in the month of October 2014 to 274,622 units in the month of October 2015. The stock is up 4.5%.

Reliance Communications extened gains and was up nearly 1%. On Monday the company announced the merger of Sistema Shyam TeleServices' India operations with itself in an all-stock deal.

Among others, Tilaknagar Industries has soared 20% to Rs 27.70 on the BSE in intra-day after the company announced that it has entered into a MOU with the Three Stills Company to explore opportunities to distribute scotch whisky in India.

Shares of Jain Irrigation were up nearly 2% at Rs 64 after the company said its Food Division has won a contract from Hindustan Coca-Cola Beverages Ltd (HCCBPL0, the authorised and largest bottler for India, of The Coco-Cola Company, Atlanta, USA.

Shares of Lakshmi Machine Works were up over 4% at Rs 3,700 on the Bombay Stock Exchange after the company reported 21% rise in net profit at Rs 56.5 crore for the quarter ended September 30, 2015 compared with Rs 46.8 crore in the same quarter last fiscal.