Markets remain weak ahead of April F&O expiry

Benchmark indices continue to trade lower on sustained selling by foreign investors on MAT worries and lower-than-expected Q4 earnings posted by select blue-chip companies amid weak global cues.

Meanwhile, investors remain cautious ahead of the April series expiry in the derivatives segment.

At 11.30 am, the Sensex is quoting at 26,994 levels, lower by 232 points and the Nifty is at 8,176, down 64 points.

Continued selling by foreign institutional investors (FIIs) amid tax concerns has cost India the most favoured emerging market (EM) tag in April. Foreign flows into Indian stocks so far this month are $1.8 billion, much lower as compared to peers South Korea ($3.9 bn), Taiwan ($3.4 bn) and Brazil ($2.3 bn), show data from Bloomberg.

RUPEE

The rupee weakened by 28 paise to 63.58 against the US dollar in early trade today at the Interbank Foreign Exchange due to month-end demand for the American currency from importers amid capital outflows.

KEY STOCKS

On the sectoral front, BSE IT, Metal, FMCG, Power and Teck indices are losiing sheen and are trading lower up to 2%. However, BSE Consumer Durables and Oil & Gas indices are trading higher up to 1%.

The bills on GST, black money (Undisclosed Foreign Income and Assets) and land boundary agreement are scheduled to be taken up after May 5, according to media reports. Among the Consumer Durables pack, Symphony, TTK Prestige, Rajesh Exports, Bajaj Electricals are trading higher up to 7%.

Oil major Reliance Industries is trading 1% higher in an otherwise weak market after the government announced a policy for development of oil and gas discoveries.

Axis Bank, on Wednesday, reported an 18% increase in the March quarter net profit at Rs 2,181 crore, driven by a jump in core income. The stock is up over 4%.

Bharti Airtel continues to lose sheen on the bourses after the consolidated net profit fell 12.6 percent to Rs 1255.3 crore in the March quarter compared with Rs 1436.5 crore in the December quarter. The stock has lost 3.5%.

Shares of Vedanta ( Sesa Sterlite) are trading down over 0.6% on the BSE after the company posted a steep fall of 72.5% in adjusted profit at Rs 491 crore for the quarter ended March 2015 as compared to profit of Rs 1,788.65 crore in the corresponding period previous year.

Housing Development Finance Corporation (HDFC) standalone profit increased 8%year-on-year to Rs 1,862.43 crore in March quarter, impacted by deferred tax liability. The stock is down 2.6%.

The breadth on the BSE is weak with 1,125 declines versus 978 advances.