Markets trim early gains, auto & banks under pressure

Maruti Suzuki, Tata Steel, Wipro, M&M and HDFC Bank have gained between 0.3-2.5%

Markets have trimmed eraly gainsMarkets have trimmed early gains and are trading below 21,100 mark weighed down by auto and financials. Markets made a higher opening tracking positive global cues. 

The government will unveil data on gross domestic product (GDP) for Q3 December 2013 after trading hours today.

By 9:40, the Sensex was higher by 61 points at 21,048 mark and the Nifty gained by 12 points at 6,251 levels.

The broader markets are trading marginally higher- BSE Midcap and Smallcap indices have gained between 0.3-0.4%.

The market breadth in BSE remains positive with 647 shares advancing and 326 shares declining.

The rupee is trading at 62.08 per dollar versus previous close of 61.98/99.

Meanwhile, foreign institutional investors (FIIs) bought shares worth a net Rs 511.15 crore on Wednesday, as per provisional data from the stock exchanges.

GLOBAL MARKETS

The S&P 500 closed at a record on Thursday and ended in positive territory for the year after Federal Reserve Chair Janet Yellen said harsh weather seems to be to behind recent US economic softness.

That gave some relief to investors who supported the view that heavy snowstorms and unusually cold weather - and not worsening fundamentals - were to blame for weak US employment, retail sales and other data.

The advance lifted the S&P 500 above its 2013 year-end closing level of 1,848.36, which has served as resistance in recent sessions.

Asian stocks managed to shrug off early losses on Friday and push higher, inspired by gains on Wall Street after US Federal Reserve Chair Janet Yellen's comments underscored her confidence in the US economy.

Yellen's testimony to a Senate committee helped the S&P 500 shrug off fears of rising tension in Ukraine and Russia and close at a record high. But the fear factor still helped the yen rise against the dollar and euro on its traditional safe-haven appeal.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.2%, on track for a weekly gain, while Tokyo's Nikkei stock average erased most losses and ended the morning session just a few ticks shy of flat.

SECTORS & STOCKS

BSE Healthcare, IT and Metal indices have gained by 1% each. However, BSE Consumer Durables and Bankex indices are trading marginally lower.

The main gainers on the Sensex at this hour include Dr Reddy’s Labs, Tata Motors, Sun Pharma, Bajaj  Auto, Sesa Sterlite, BHEL, Hindalco, Axis Bank, SBI and TCS.

Dr. Reddy’s Laboratories is trading higher by 2% at Rs 2,896, extending its previous day’s 2% gain, after the company said it has launched Sumatriptan Injection USP in the US.

On the losing side, Maruti Suzuki, Tata Steel, Wipro, M&M and HDFC Bank have gained between 0.3-2.5%.

Maruti Suzuki made an announcement today regarding its board decision on Gujarat project. Following the announcement, there have been queries and request for clarification from investors and media related to pricing and funding of capacity expansion in the proposed contract manufacturing arrangement