Nifty facing resistance above 8,750; Railway stocks in focus

Markets continue to trade lower as participants keenly await for the key announcements in Rail Budget 2015-16 which would be tabled in Parliament by Rail Minister Suresh Prabhu later during the day.

Weakness in Index heavyweights including ITC and Infosys coupled with drug maker Sun Pharma are contributing the most to the decline on the 30-share Sensex.

At 11.45 AM, the Sensex is down 66 points at 28,943 whereas the Nifty has lost 20 points at 8,747.

In the broader market, both BSE Midcap and Smallcap indices are trading in line with the large counterparts and are down 0.2% each.

Meanwhile, foreign portfolio investors (FPIs) bought shares worth a net Rs 516.06 crore yesterday, as per provisional data. Domestic institutional investors (DIIs) bought shares worth a net Rs 19.70 crore yesterday, as per provisional data.

RAILWAY STOCKS

Rail-related stocks are trading mixed on BSE in late morning trade, ahead of the Railway Budget today. Titagarh Wagons, Hind Rectifiers, Cimmco and Container Corporation, Kernex Microsystems are trading higher between 1-5% while Texmaco Rail and Engineering, Stone India and Kalindee Rail Nirman down 0.3-1% on the Bombay Stock Exchange (BSE).

BUZZING STOCKS

All sectoral indices are trading in the negative territory with BSE Healthcare index losing the most and is down nearly 1% followed by BSE FMCG, Oil & Gas, Metal and Auto indices down up to 0.5%.

Shares of Tata Power are trading lower by 0.2%. Tata Power has given its multi-year rates proposal to the state electricity regulator, proposing lower charges for residential, commercial and industrial users in this city.

Attorney Generals of Texas and California have separately sought information on pricing of some drugs sold by Dr Reddy's Laboratories in the US, according to the latest filing for the drug maker with Securities and Exchange Commission (SEC). The stock is down 1%.

Sun Pharmaceutical Industries’ executive director, Sudhir Valia,  Valia has purchased shares  worth Rs 73.5 crore in Greenply Industries. However, the stock has dipped nearly 2%.

An appreciating rupee has casted its shadow on the IT stocks. Infosys, TCS and Wipro are down between 0.1-1.2%.

Other major losers include BHEL, Baja Auto, Hindalco, Coal India down between 1.5-2%.

On the flip side, Bharti Airtel India's biggest mobile phone operator by users, is raising as much as $415 million through the sale of shares in mobile tower unit Bharti Infratel, according to media reports. The stock has climbed 1%.

Shares of housing finance major Housing Development Finance Corporation (HDFC) has moved higher by 2% at Rs 1,370 in an otherwise weak market. Alpesh Mehta and Sunesh Khanna, analysts at Motilal Oswal Securities in report dated 29 January 2015, recommended ‘buy’ rating with a target price of Rs 1,410.

Ratan Tata, former chairman of Tata Sons, has confirmed Jaguar Land Rover, luxury vehicle arm of Tata Motors, is looking for a factory site in North America. The stock has gained nearly 0.5%.

State-owned NTPC said its board has approved the investment proposal for 1,320 MW thermal power project in Madhya Pradesh. The stock is trading 0.6% higher.

Energy major ONGC which reeled under selling pressure from last couple of sessions has rebounded in today’s trade on value buying. The stock is up 0.7%.