Markets trade flat ahead of Q3 earnings; Dr Reddy's fall over 3%

Benchmark indices continued to trade flat as investors were cautious ahead of Union Budget and December quarter earnings.

 

Advance estimates of gross domestic product (GDP) data for fiscal year 2017, which indicated a slowdown in growth even though the figures do not take into account the demonetisation impact also affected the sentiment.

 

At 1:23 pm, the S&P BSE Sensex was trading at 26,735, down 23 points, while the broader Nifty50 was ruling at 8,238, down 6 points.

 

Broader markets outperformed the headline indices with BSE Midcap and BSE Smallcap adding 0.3% and 0.5%, respectively.

 

Asian stocks cut early gains as investor caution grew before a news conference by President-elect Donald Trump on Wednesday, where his views on global trade and China will be carefully scrutinized for future policy implications.

 

Back home, Recent outperformer Dr. Reddy's Laboratories Ltd led the decliners with a 3.2% drop, after having gained 5.4% over the previous two weeks. Other losers included Power Grid, Coal India, ONGC and NTPC while Tata Motors, ITC, Maruti and Bajaj Auto were top gainers.

 

Tata Motors gained 1% to Rs 505, bouncing back 3% from intra-day low on BSE, after the company said Jaguar Land Rover (JLR) reported 12% rise in total retail sales of 55,375 vehicles in December 2016 over the previous year.

 

Realty index was outperforming, up 1% driven by Prestige, Phoenix, India Bulls Real Estate and DLF while power, oil & gas and pharma were the top sectoral losers on Sensex.

 

Even though pharma index was trading in red, Aurobindo Pharma was up 1%, after earlier rising as much as 4.32%, following approval from the U.S. FDA for its generic treatment for seizures.

 

Among individual stocks, Fortis Healthcare reached its record high of Rs 205, up 7%, extending it’s a month long gain on the BSE, on back of heavy volumes. In past one month, the stock outperformed the market by gaining 18% after media report suggested that the promoters are looking to divest their stake in company engaged in healthcare facilities business.

 

BEML has surged 20% to Rs 1,189 on the BSE in intra-day after the company said the Cabinet has given an ‘in-principle’ approval for strategic disinvestment of 26% equity shares in BEML out of the government’s shareholding of 54.03%.

 

Granules India has dipped nearly 11% to Rs 97.80 on BSE in early morning trade after the pharmaceutical company said it has received 11 observations from Infarmed (InstitutoNacional da Farmacia E Do Medicamento), the Portuguese drug regulator, for its facility located at Gagillapur, Telangana.

 

Meanwhile, Oil prices fell as Iran increased exports undermining efforts by other oil producers to curb a global fuel supply overhang and as US drillers increased activity for a 10th week.