Markets retreat from all-time highs; services PMI disappoints

Sensex up 107 points at 27,966 and the Nifty gains 28 points at 8,352

Benchmark indices are range bound after hitting fresh highs which saw the BSE Sensex touching its life time of 28,006 in a broad based rally aided by financials and index heavyweights.   

At 1045 hrs, the 30-share Sensex was up 107 points at 27,966 and the 50-share Nifty was up 28 points at 8,352.

In the broader market, both  BSE Mid cap and Small cap indices have outperformed their larger peers with gains of around 0.7-0.8% each while market breadth is positive with 1,483 advances against 821 declines.

On the macro front, growth in India's dominant services industry stalled last month as new orders came in at a weaker pace, adding to pressure on the government to drive through economic reforms, a business survey showed on Wednesday.

The HSBC Purchasing Managers' Index (PMI), compiled by Markit, fell to 50 in October from September's 51.6, the lowest in six months and right on the break-even point between growth and contraction.

The rupee is trading at 61.36 versus its Monday's close of 61.40 against US Dollar.

Sectors and Stocks

BSE Bankex and Realty indices are the biggest gainers, up around 1% followed by BSE Healthcare, FMCG and IT indices with gains of 0.5% each. On the other hand, BSE Metal index is the sole loser and has declined around 1.5%.

Bank shares are among the biggest gainers with SBI leading the pack with a gain of around 1.7%. Axis Bank and HDFC Bank have gained close to 1% while ICICI Bank is up around 0.7%.

Index heavyweights like ITC, L&T and RIL have added significantly to the rally.  ITC is up nearly 1% while L&T and Reliance are up around 0.2% each.

Pharma shares continue to gain. Sun Pharma up 1.5% is the top gainer among the pharma scrips and is one of the significant gainers among Sensex-30. Cipla up 0.4% is gainer from this space.

Auto shares are trading mixed. Bajaj Auto has gained around 1.8% along with Maruti Suzuki and Tata Motors up 0.7% each. Hero Motocorp and M&M have lost around 0.1-0.4%.

Metal shares are under pressure following unexpected weak factory data from China. Sesa Sterlite has declined more than 2% followed by Hindalco and Tata Steel down upto 1.4%.

Bharti Airtel and Coal India are other prominent losers, down 1.5-2.1%.

Among other shares, Hexaware Technologies has surged 6% after reporting a 7.9% quarter-on-quarter growth in revenues for the third quarter ended September 2014 (Q3) in dollar terms.

Vindhya Telelinks has soared 11% in early morning deals after Reliance Mutual Fund bought nearly 4% stake in telecom cables firm for about Rs 20 crore through open market.

Industrial energy solutions provider Thermax has gained more than 4% after its net profit recorded almost three fold jump at Rs 86 crore as compared to Rs 30 crore last year for the second quarter ended September 30, 2014.