Metal stocks lose sheen in a firm market; Tata Steel dips 4%

Rate sensitive shares leading the rally on hopes of a rate cut in the next monetary policy on the back of good macro data

After a robust opening, markets continue to trade firm with Nifty hovering around the crucial 8,400 mark with rate sensitive shares leading the rally on hopes of a rate cut in the next monetary policy on the back of favourable macroeconomic numbers.

However, yuan devaluation for the third straight day has casted a shadow on the metal pack with Tata Steel, Hindalco and Vedanta trading lower between 2-4%.

At 10:30 AM, the Sensex was up 125 points at 27,638 levels and the Nifty was up 35 points at 8,385 levels.

Infosys, HDFC Bank, Lupin, Bharti Airtel and RIL are the top 5 gains. On the other hand, Tata Steel, Vedanta, Hindalco, GAIL and Coal India are the top 5 losers. 

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(updated at 9:40 AM)

Markets have opened the session on a higher note after India's retail inflation fell to 3.78% in July from 5.40% in the month before and the growth in factory output accelerated to 3.8% in June from 2.7% in the previous month.

However, the passage of the GST bill on the last day of the monsoon session of the Parliament remains elusive keeping the investors unnerved. 

At 9:40 AM, the Sensex was up 207 points at 27,719 levels and the Nifty was up 61 points at 8,410 levels.

RUPEE

After hitting a year-low in the yesterday’s trade on the back of yuan depreciation, the rupee has bounced back in today’s trade tracking strength in the local equities and is trading at 64.66 up 11 paise.

STOCK TRENDS

On the sectoral front, all sectoral indices are trading in green with BSE Auto, Bankex, Power, Realty, Capital Goods and Consumer Durables indices are trading higher up to 2%.

In a significant move that could address the problem of call drops, the government on Wednesday allowed spectrum sharing between telecom operators. Telecom majors Bharti Airtel, Idea cellular and RCom are trading higher by 2% each.

Rate sensitive stocks are gaining across the exchange on the back of good macroeconomic numbers released yesterday post market hours raining hopes of a rate cut by the RBI in the next monetary policy.

India's retail inflation fell to 3.78% in July from 5.40% in the month before and the growth in factory output accelerated to 3.8% in June from 2.7% in the previous month.   

ICICI Bank, Axis Bank, HDFC twins, SBI, Tata Motors, Bajaj Auto, Hero Motocorp  and M&M are trading higher between 1-2%.

Metal stocks are firming up in today’s trade after plunging for two straight session on yuan devaluation. Hindalco, Vedanta and Tata Steel are up between 1-2%.

Coal India's consolidated net profit fell 6.66% to Rs 3764.35 crore on 4.93% fall in total income to Rs 20965.20 crore in Q1 June 2015 over Q1 June 2014. However, the stock is up 0.6%.

Dr Reddy's Laboratories launched Pramipexole dihydrochloride extended-release tablets of 0.375 mg, 0.75 mg, 3 mg, 4.5 mg, in the US market on Tuesday, following the approval by the United States Food and Drug Administration (USFDA) . However, the stock is trading 0.5% lower.

A strong rupee has casted its shadow on the technology pack. TCS and Wipro are trading 1% and 0.4% lower.

FMCG majors ITC and HUL are trading in green on the back of easing retail inflation numbers.  Meanwhile, capital goods majors BHEL and L&T are trading higher on the back of strong IIP data. They are up 1.4% each.

GLOBAL MARKET

Asian shares climbed today tracking strength on the Wall Street amid efforts by China's central bank to slow the sharp descent of the yuan.

Japan's Nikkei stock index was up 0.4%, shrugging off downbeat capital expenditure figures Japanese data released before the market open showed Japan's core machinery orders fell a greater-than-expected 7.9% in June, down for the first time in four months.