Markets finish lower ahead of US jobs data

Markets finished the session with marginal losses on renewed buying interest in oil exploration majors ONGC and RIL coupled with gains in Vedanta amid reports that the company may start iron ore mining operations at the Codli mines in Goa on August 10.
 

However, weakness in banking shares coupled with losses in engineering major BHEL capped the upside.

Provisionally, the Sensex ended 60 points lower at 28,239 and the Nifty ended 23 points down at 8,565. Caution was evident on the bourses ahead of the US jobs data due later today.

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(updated at 2:25 PM)

The benchmark indices are trading marginally in the red on account of weakness in capital goods and banking stocks.

At 2.25 pm, the Sensex was at 28,259, lower by 38 points and the Nifty was at 8,574, down 1 points. The midcap and smallcap indices are also trading flat at 11,573 and 12,126 respectively. The market breadth is mildly positive. Out of 2,897 stocks traded on the BSE, there are 1,359 advancing stocks as against 1,420 declines.

Investors are keenly awaiting for the US jobs data later today that may help determine whether the Federal Reserve could raise interest rates in near future.

RUPEE

The rupee was trading lower by 4 paise to 63.81 against the dollar in early-noon trades due to persistent demand for the dollar from banks and importers.

STOCK TRENDS

Banking and capital goods stocks are out of favour, while oil and auto stocks are seeing buying interest.

Banking stocks are feeling the heat, with the BSE Bankex shedding 0.7% at 21,707. SBI is trading lower by almost 2% ahead of the quarterly results later during the week. Bank of Baroda, Bank of India, Axis Bank, Punjab National Bank and HDFC Bank are among the major losers, shedding 0.5%-2% each.

Capital goods stocks are also having a rough ride. BHEL has plunged by 8.5% to Rs 258 on the BSE after reporting a sharp 82% year-on-year (YoY) decline in net profit at Rs 34 crore for the quarter ended June 30, 2015 (Q1), on account of lower operational income. The state-owned company had posted a profit of Rs 194 crore in the same quarter last year. Coal India has also lost more than 2%.

On the other hand, ONGC and RIL are trading higher by 3% and 0.5% respectively on the back of renewed buying interest.

Auto major Tata Motors is trading higher by more than 2% ahead of the quarterly results scheduled later in the day. M&M is however, trading flat, with a negative bias after posting a 3.4% decline in net profit for the quarter ended June 30, 2015 due to lack of new products in the passenger vehicle space and drastic fall in demand for tractors.

Among other stocks, Vedanta has risen by over 3% on the news that it is likely to start iron ore mining operations at the Codli mines in Goa on August 10. Vedanta will restart iron ore business in Goa on August 10 after a closure for nearly 3 years.

Nestle has bounced back by 1% at Rs 6,552 after plunging nearly 5% in the previous session on the news that food regulator FSSAI had trashed all-clear reports from two of its empanneled labs to Maggi noodles.