Markets trim gains, Nifty hovers around 7,900; ITC, Sun Pharma weak

Benchmark indices continued to trade firm in noon deals on Friday with IT majors Infosys, TCS and Wipro leading the gains.

At 12:25 pm, the Sensex is up 157 points at 25,999 and the Nifty has gained 46 points to trade at 7,889. Broader markets are trading in line with the benchmark indices- BSE Midcap and Smallcap indices are up almost 1%.

According to Molilal Oswal market outlook for today, “Immediate support at 7,700 has been defended well as Nifty saw a swift up-move & regained 7,800. The convergence with the trigger line in momentum indicator suggests that there could be a temporary pullback before any major fall. A break above 7,870 would unfold the pullback move & propel Nifty towards 8,080.”

The report further adds, “Looks like the band of 8,000 & 7,700 could be held for the rest of the days of expiry. Drop in India VIX indicates there more chances of index moving into this range.”

From the Sensex 30 pack, GAIL is the top gainer, up almost 9%.  

 
Dr Reddy’s Labs has rebounded in trades today and is up almost 2% after witnessing a sharp fall yesterday.  On Thursday, The stock hit its lowest level since February 11, 2015 on the NSE after receiving a warning letter from the US Food and Drug Administration ( US FDA) over quality control issues at three of its manufacturing facilities.

From the IT segment, Infosys has extended gains and is up over 1% after suffering losses in past few trading sessions. TCS and Wipro are also trading firm, both gaining between 2-3%.

According to media report, Chelsea FC has partnered with Wipro to improve the digital fan experience.

Auto shares are also witnessing buying demand on reporting strong sales numbers for the month of October. M&M, Maruti Suzuki and Bajaj Auto have accelerated between 1.8-2%.

Further, the seventh pay commission submitted its report to Finance Minister yesterday. The recommendations include a substantial rise in salaries of central government employees and pensioners with effect from January 1, 2016 which in turn will boost sales of affordable homes and consumer durables steering demand in the economy.

Other notable gainers are BHEL, SBI, ICICI Bank, Cipla and HDFC Bank.

The midcap gainers include Simplex Castings which is locked in upper circuit of 20% at Rs 61.95, also its 52-week high on the BSE after the company announced that it has received an order from Diesel Locomotive Works (DLW), owned by Indian Railways worth of Rs 54 crore approx.

Intellect Design Arena has surged 12% to Rs 276, extending its previous day’s 3% gain on the NSE, after Intellect SEEC, the insurance software division of the company announced the launch of its Digital Distribution Suite for the UK Life and Pension markets.