Markets remain rangebound; Metals under pressure

  Benchmark indices trimmed their initial gains as selling pressure is witnessed in metal and consumer durable shares. The Wholesale Price Index (WPI) for the month of February remained unchanged at negative 0.9%.

At 12:50 pm, the Sensex is up 82 points to quote at 24,800 and the Nifty50 climbed 25 points to quote at 7,535.

Meanwhile, RBI governor Raghuram Rajan commented that the headline fiscal deficit target for the next financial year (at 3.5%) is a comfort for the central bank and has already hiked hopes of a rate cut.

On the macroeconomic front, Index of Industrial Production (IIP) for January stood at -1.5 contracting for the third straight month weighed down by manufacturing data, which dropped to -2.8% against -2.4% month-on-month (MoM). Also, the April-January IIP data has slipped to 2.7% against 3.1% (YoY).

On the currency front, the Indian rupee has flattened out against the American currency. However, it opened higher at Rs 66.68 against Friday’s closing level of 67.05 at the Inter-bank Foreign exchange (forex) market.

KEY STOCKS

BSE Metal index is trading lower by 2% followed by BSE Consumer Durables index that has dropped 0.2%.

Losses in the metal pack owing to steep decline in Coal India after the stock turned ex-dividend for Rs 27.40 per share today are capping the upside. The stock has slipped over 6%. Its peers Jindal Steel, SAIL have dropped between 0.5%-4% each.

In the banking pack, buying is witnessed across the board following comments from the RBI Governor. Axis bank, ICICI Bank, SBI have gained between 0.5% and 3.5% each.

NMDC, India's largest iron ore miner, has raised iron ore prices by Rs 70-150 a tonne for this month, effective last Friday. The stock is trading over 2% higher.

Oil exploration majors ONGC, RIL and GAIL are trading higher by 1% on the back of stability in the crude oil prices.

Tata Motors is trading higher by 4% to Rs 369, extending its Friday’s 2% gain on the BSE after the company reported 17% year-on-year increase in group global wholesales, including that of Jaguar Land Rover (JLR) vehicles, at 98,842 units in February 2016. The company had sold 83,951 units in February 2016.

Shares of Pfizer have dipped 5% to Rs 1,827 on the BSE, after the company announced that it has discontinued the manufacturing and sale of its popular drug “Corex”.

Glenmark Pharma has received the final nod from the US FDA to manufacture and market therapeutical equivalent of Endo Pharmaceutical's Frova tablets, used to treat migraine headaches, in the American market. The stock has gained 1.1%