Markets remain subdued; BSE Midcap index up 0.5%

Benchmark indices continue to trade in a narrow range with negative bias weighed down by financials and index heavyweight ITC. However, gains in select index heavyweights such as Reliance Industries and Infosys capped losses.

Further, market participants will keep an eye on the Index of Industrial Production (IIP) numbers for February to be unveiled in the course of the day.

At 10:17AM, the 30-share Sensex was down 45 points at 28,841 and the 50-share Nifty was down 14 points at 8,764.

However, the broader markets are outperforming the benchmark indices- BSE Midcap and Smallcap indices are up over 0.5%. The market breadth is strong with 1,234 advances versus 765 declines on the BSE.

"The market is likely to trade sideways, before making a sharp upside move. For the Sensex resistance is seen at 28939 above 29183 and support is at 28785 below 28669. For the Nifty resistance is seen at 8791 above 8849 while Support is at 8745 below 8718," Geojit BNP Paribas Financial Services said in a note.

In the currency front, the rupee depreciated by 15 paise to 62.39 against the dollar in early trade today on the Interbank Foreign Exchange as the American currency firmed up overseas on upbeat US jobs report.

ASIAN MARKETS

Japan's Nikkei share average slipped on Friday when the initial euphoria as it topped the psychological milestone of 20,000 was quickly taken over by selling to lock in the past few months' solid gains.

The Nikkei fell 0.2% to 19,897.97, reversing its course after having risen above the 20,000 mark for the first time in 15 years.

The rally has been driven by many factors, including hopes of higher shareholder returns, rise in corporate earnings, recovery in domestic consumption and more share buying, both real and imagined, by Japanese public investors.

The market expects Japanese corporate earnings to rise 10 to 15% this year, but with the Nikkei already up 14% so far this year, some investors see limited justification to chase more gains.

SECTORS & BUZZING STOCKS

BSE Oil & Gas, Realty and Consumer Durables indices are trading higher by almost 1%. However, BSE Metal index has slipped by 0.2%.

Hindalco is the top Sensex loser, down almost 2% after US-based aluminium major reported lower-than-expected revenues.

Bharti Airtel is down by almost 1%. Telecom Regulator Authority of India reduced the tariffs on roaming for outgoing local calls and incoming calls on roaming. It has also mandated telecom service providers to offer a special roaming plan.

From the financial space, HDFC, HDFC Bank and ICICI Bank have slipped between 0.3-1%. Banking shares ended higher yesterday after Moody's Investors Service changed India's outlook to 'positive' from 'stable' earlier and affirmed 'Baa3' credit rating on Thursday.

Other notable losers from the Sensex pack are Cipla, Tata Steel, ITC, Bajaj Auto and Coal India.

On the gaining side, SBI, Sesa Sterlite, ONGC, BHEL and M&M have gained between 1-1.5%.

SMART MOVERS

IDFC is trading higher by 3% at Rs 178 on the NSE after the company said it has got the shareholders approval for the demerger of its financial undertaking into IDFC Bank.

Shares of Neyveli Lignite Corporation are up 4% at Rs 78 after the state-owned company said it has commenced the second phase of the Tuticorin Power project.

Biocon has gained by 3% at Rs 481 on the National Stock Exchange (NSE) in early morning trade after the biopharmaceuticals major said it has received approval for its Insulin Glargine by Cofepris, the Mexican health authority, through its partner PiSA Farmaceutica.

Shares of all three listed rating agencies – ICRA, CRISIL and Credit Analysis and Research (CARE) – were rallied by up to 12% on back of strong foreign institutional investors (FIIs) buying in January-March 2015 quarter.

ICRA has rallied 12% to Rs 4,993, CRISIL surged 7.5% to Rs 2,340 and CARE gained 3% to Rs 1,786 on the Bombay Stock Exchange (BSE). All these shares hit their respective record highs on the bourses.

IndusInd Bank Ltd said it would buy Royal Bank of Scotland's diamond and jewellery financing business in India and the related deposit portfolio. The stock is marginally positive.