Markets turn cautious ahead of IIP numbers; Broader markets outperform

Markets have trimmed early morning gains but still continue to trade in the positive terrain on the back of buying seen in select index heavyweights and consumer durables and realty shares amid positive global cues. 

However, market participants are cautious ahead of the Index of Industrial Production (IIP) data for the month of July, which will be revealed later in the day.

At 11:30AM, the Sensex was higher by 90 points at 25,712 and the Nifty gained 30 points at 7,818 levels.

The broader markets extended their gains and continue to outperform their larger counterparts. BSE Midcap and Smallcap indices are up by 0.7% and 0.9%, respectively. The market breadth is positive with 1,494 advances versus 680 declines on the BSE.

Meanwhile, the investors are keeping an eye on the next week’s US Federal Reserve meet, which can provide further signals on the interest rate hike.

Further, Foreign portfolio investors (FPIs) sold shares worth a net Rs 121.19 crore yesterday, as per provisional data released by the stock exchanges

On the currency front, the Indian Rupee is trading at 66.36, strengthening by 7 paise against the US dollar.

SECTORS & STOCKS

Sectorally, BSE IT is leading the rally with 1.4% gains followed by BSE Realty, up by 1.3%. Consumer Durables, FMCG, and Healthcare sectors have gained between 0.7-1% each.

Infosys has announced that it will increase the stipends of interns during the internship instead of increasing entrant salaries. The stock is up by 1.8%

Financials and banking shares are rallying on the expectations that the consumer inflation for the month of August has cooled off further, thus raising hopes of a rate-cut by the central bank. SBI, HDFC twins, Axis Bank are all up between 0.1-1.6% each.

Sales of domestic cars in August grew 6% over the same month last year, according to data released by the Society of Indian Automobile Manufacturers (Siam) on Thursday whereas there is a decline in the sales of two wheelers for the same period. Maruti Suzuki is up 0.5% while Bajaj Auto, Hero Motocorp is down between 0.2-1% each

Vedanta Resources has resorted to “aggressive cost reduction” and “workforce reduction” in its aluminium segment amid subdued and volatile market conditions globally. Vedanta is up 0.4%.

L&T(0.3%), BHEL(1.5%) are trading lower ahead of the IIP numbers, which will be released later today.

Among other shares, shares of aviation companies are in focus with Jet Airways and SpiceJet trading higher by up to 7% each on the Bombay Stock Exchange (BSE) SpiceJet surged 6% while Jet Airways (India) gained 6.4%on the BSE

Elder Pharmaceuticals has surged 15% on the BSE on back of heavy volumes in early morning trade on media reports that the company may sell its assets to clear debt.