Markets remain subdued; Sun Pharma drops 3%

Benchmark indices continue to trade in a narrow range with negative bias tracking mixed trend among global cues. The dollar strengthened sharply and investors digest the Federal Reserve's first interest rate rise this year and its hawkish rate outlook for 2017.

At 15:00 pm, the Nifty 50 index was trading 21 points lower at 8,162 levels, while the S&P BSE Sensex as trading 54 points lower at 26,543 levels. Broader markets are outperforming- BSE Midcap and Smallcap indices are 0.1%-0.3%.

“Traders will need to watch if the Nifty can hold above the immediate supports of 8,154; else a further correction is likely. Upside resistance is at 8,249”, said HDFC Securities’ analyst.

Asian shares and currencies softened on Thursday after the Federal Reserve raised rates for the first time in a year and hinted at the risk of a faster pace of tightening than investors were positioned for.

Yields on short-term US debt surged to the highest since 2009, sending the dollar to peaks not seen in almost 14 years, which in turn prompted China's central bank to set the yuan at its weakest level against the greenback since 2008.

Back home, shares of information technology (IT) companies were trading higher by up to 8% on back of heavy volumes. Tata Consultancy Services (TCS), Infosys, HCL Technologies, KPIT Technologies, Tech Mahindra and Tata Elxsi from the Nifty IT index were up 1%-3% on the National Stock Exchange (NSE).

Ramco Systems, Sonata Software, R S Software, Mastek, Majesco, L&T Infotech, Rolta India and Quick Heal Technologies were among non-index stocks, up between 2% and 8% on the NSE.

Shares ports, shipping and logistics companies were trading higher by up to 10% on the bourses after the Cabinet approved a Major Port Trust Authorities Bill to replace the Major Port Trusts Act of 1963.

Adani Ports and Special Economic Zone, Gujarat Pipavav Port, Shipping Corporation of India (SCI), Great Eastern Shipping Company, Essar Shipping and Allcargo Logistics were up between 2% and 10% on the BSE. At 09:30, the S&P BSE Sensex was trading at 26,606.

Indraprastha Gas (IGL) has hit a record high of Rs 901, up 3.6% on the BSE in intra-day trade in otherwise volatile market.

National Aluminium Company fell 9% to Rs 60 on the BSE in intra-day trade after the company reported 52% year on year (YoY) drop in its net profit at Rs 121 crore for the quarter ended September 30, 2016 (Q2FY17), due to poor performance of chemical business.


With Reuters inputs