Nifty hovers around 8,600; Sun Pharma up 5%, HDFC dips 2%

Benchmark indices continue to trade in a narrow range with Sensex and Nifty swinging between negative and positive zone.

Further, growth in services, the largest sector of India's economy, moderated in March compared to the previous month's, widely-tracked HSBC purchasing managers' index (PMI). Even the employment generation rose in March, while February had seen stagnant jobs.

Ahead of the Reserve Bank of India's (RBI) policy review on Tuesday, the PMI survey showed that inflation rose on both input and output sides, even though firms did not pass the entire higher input prices to consumers due to fierce competition.

At 11:25AM, the 30-share Sensex was up 24 points at 28,285 and the 50-share Nifty was up 3 points at 8,590.

However, the broader markets are outperforming the benchmark indices- BSE Midcap and Smallcap indices are up 0.7-1.2%. Market breadth was positive with 1,435 gainers and 740 losers on the BSE.

"Markets is likely to trade sideways. Further, selective buying can be seen by noon. For the Sensex resistance is seen at 28291 above 28428. Support is at 28103 below 27992. For the Nifty resistance is at 8628 above 8655.  Support is at 8550 below 8531." Geojit BNP Paribas Financial Services said in a technical note.

In the currency front, the rupee is trading at 62.18 per dollar vs previous close of 62.47.

GLOBAL MARKETS

Asian shares rose and the dollar steadied but remained under pressure on Monday, after a dismal U.S. jobs report led investors to pare bets the US Federal Reserve would hike interest rates anytime soon.

Major European markets were closed from Friday to Monday for the Easter holiday, reopening on Tuesday.

Labor Department data showed U.S. employers added the fewest jobs in more than a year in March. The rise of 126,000 jobs was well below expectations for a gain of 245,000 forecast by a Reuters poll of economists.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.7% to push to its highest levels since September 2014. Japan's Nikkei stock average slumped 0.3%, though it pared earlier sharp losses as the yen gave up gains against the dollar.

SECTORS & BUZZING STOCKS

BSE Healthcare index has surged almost 2.5% followed by counters like Consumer Durables, Auto, FMCG and Oil & Gas, all gaining between 0.6-1.6%. However, BSE Metal, IT, Bankex and Power indices are down 0.2-1%.

From the pharma space, Sun Pharma, Cipla and Dr Reddy’s Labs have gained between 2-5%.

Shares of Sun Pharmaceutical Industries are up almost 5% after the company completed the merger of Ranbaxy Laboratories with itself.

Other notable gainers are M&M, Tata Motors, GAIL, Bharti Airtel, HUL and Hindalco.

On the losing side, Tata Steel, HDFC, Wipro, Tata Power and Bajaj Auto have dipped between 1-2%.

Bank shares are trading lower ahead of the Reserve Bank of India's (RBI) policy review tomorrow.

As many as 10 of 12 leading bankers and market players that Business Standard polled on Saturday expect the central bank to maintain the status quo on the benchmark interest rate during its annual policy meeting.

SMART MOVERS

Shares of Adlabs Entertainment have moved higher to Rs 195, bouncing back 26% from its intra-day low after listing below its issue price on the National Stock Exchange (NSE).

Force Motors has rallied over 9% to Rs 1,555 on the Bombay Stock Exchange (BSE) after reporting 18% year on year total vehicles sales at 3,771 units in the month of March 2015 on back strong performance by the light commercial vehicles (LCVs) segments.

Shares of SML Isuzu has rallied 15% to Rs 1,352 on the National Stock Exchange (NSE) after reporting a 33% year on year growth in vehicles sales at 1,772 units for the month of March 2015.