Nifty below 8,500; Infosys, HDFC Bank down over 1%

Benchmark share indices extended losses tracking weak global cues with financials and select IT majors leading the decline. Markets are likely to remain volatile in the latter half of the trading session ahead of the expiry of March derivative contracts today.

At 10:30AM, the 30-share Sensex was down 228 points at 27,883 and the 50-share Nifty was down 59 points at 8,471.

"Markets are likely to test key support levels. Minor recovery can be expected by noon.
For the Sensex resistance is seen at 28205 above 28372. Support is at 28031 below 28882.

For the Nifty resistance is seen at 8553 above 8593 and 8601.  Support is at 8520 below 8511, 8500 and 8475," Geojit BNP Paribas Financial Services said in a technical note.

Meanwhile, foreign institutional investors were net buyers in equities to the tune of Rs 813 crore, as per provisional stock exchange data.

The Indian rupee depreciated against the US dollar and was trading lower by 30 paise at 62.63 compared to the previous close of 62.33 because of renwed demand for the greenback from banks and importers.

SECTORS & STOCKS

BSE Healthcare, Bankex, Metal, Consumer Durables, Auto indices were the top losers down 0.4-0.8% each. Capital Goods, FMCG and Power indices were among the gainers.

Financials witnessed profit taking after gains in the previous session. Mortgage lender HDFC extended losses and was down 3% after the stock was quoted ex-dividend.

In the banking pack, SBI, ICICI Bank and HDFC Bank were down 1-1.4% each.

Tata Motors was down 1.2%. The stock had gained on Wednesday after the board approved issue of  6 fully paid-up Ordinary shares for every 109 fully paid-up Ordinary shares held at a price of Rs 450 per shareand 26.5 million 'A' Ordinary shares at Rs 271 per share. The company's board also approved the buy-back of Secured Non-Convertible Debentures worth Rs 1250 crore issued by it in May 2009, maturity date being March 31, 2016.

Pharma shares which had gained yesterday on the back of merger deal between Sun Pharma and Ranbaxy Labs also witnessed profit taking. Sun Pharma and Dr Reddy's Labs were down over 1% each.

Bharti Airtel was up 1.4% as the spectrum auction came to an end on Wednesday. Idea Cellular was up 2% and Reliance communications was up 0.5%.

Gail (India) was up 0.7% and Gujarat State Petronet (GSPL) surged 6% on reports that the government will be allowed these companies to import gas on spot basis. The Cabinet Committee on Economic Affairs on Wednesday approved the import liquified natural gas for supply to gas-based power plants stranded due to a shortfall in the production of domestic natural gas in the country.

Among power stocks, Tata Power was up 0.7%, Torrent Power jumped 6%, GVK Power rose 2.6% and GMR Infrastructure was up 0.7%.

Among other shares, VA Tech Wabag were down 5% after the stock was quoted ex-bonus in the ratio today in the ratio of 1:1.

In the broader market, the BSE Mid-cap and Small-cap indices were down 0.3-0.5% each.

Market breadth was weak with 1,253 gainers and 728 losers on the BSE.