Markets remain weak, financial & IT shares drag

BSE Bankex, IT and FMCG indices have plunged by 1% each followed by counters like Power, Healthcare, Auto, Oil & gas and Capital Goods, all declining marginally.

Benchmark indices continue to trade lower weighed down by financials, software and FMCG shares.

By 1120, Sensex plunged by 75 points at 19,333, and the Nifty down 29 points or 0.50% at 5,887 levels.

On the global front, Asian markets traded mixed with China’s Shanghai Composite Index down 0.5% to 2,188, Hong Kong’s Hang Seng rose 1% to 22,599, Singapore’s Straits Times added 0.2% to 3,343 while Japan’s Nikkei was up 0.2% to 13,950.

Japan's Nikkei share average retreated from a near five-year high, ahead of the outcome of the Bank of Japan meeting, hurt by disappointing earnings from companies like Advantest Corp and M3 Inc.

Foreign institutional investors net bought Rs 14.50 billion worth of shares on Thursday, provisional data from stock exchanges showed.

Back home, the rupee rose by 4 paise to 54.18 against the dollar in early trade at the Interbank Foreign Exchange market today on increased selling of the US currency by exporters.

In the earnings calendar, Hero MotoCorp, ICICI Bank, LIC Housing Finance, Maruti Suzuki India and Siemens will report their fourth-quarter results later today.

On the sectoral front, BSE Bankex, IT and FMCG indices have plunged by 1% each followed by counters like Power, Healthcare, Auto, Oil & gas and Capital Goods, all declining marginally. However, BSE Realty, Metal, Consumer Durables and PSU indices are trading marginally.

The main losers on the Sensex at this hour include Hero Moto, TCS, JSPL, M&M, ICICI Bank, SBI, HUL and Sun Pharma, all declining between 1-2%.

On the gaining side, Bharti Airtel is the top Sensex gainer, up nearly 5% after its closest rival, Idea Cellular has reported a better-than-expected 30% year-on-year jump in consolidated net profit for the quarter ended March 2013 (Q4) on back of growth in voice minutes and high data usage.

Coal India, GAIL, Bajaj Auto and HDFC have slipped between 1-2%.

Among other shares, United Phosphorus has rallied 7% to Rs 141, extending its previous day’s over 2% gain, after reporting a 38% year-on-year (yoy) growth in consolidated net profit at Rs 278 crore for the quarter ended March 2013 on back of strong sales.

Castrol India has rallied 5% to Rs 327 after the oil marketing and distribution company announced capital reduction plan.

Idea Cellular has rallied 9% to 129, its highest level since February 2008 on NSE, on reporting a better-than-expected 30% year-on-year (yoy) jump in consolidated net profit at Rs 308 crore for the fourth quarter ended March 2013 (Q4) on back of growth in voice minutes and high data usage.

Meanwhile, BSE Midcap index has slipped by 0.11% whereas BSE Smallcap index is trading marginally higher.

The market breadth in BSE remains marginally negative with 865 shares declining and 960 shares advancing.