Markets erase gains, Nifty below 8,350; HUL dips 3%

HUL, Bharti Airtel, NTPC, Bajaj Auto and GAIL are top five Sensex losers

Markets have trimmed early gains and are trading marginally positive led by capital goods and metal shares. The upmove is capped due to selling among FMCG shares.

By 11:00, the Sensex was lower by 7 points at 27,567 and the Nifty dipped 6 points at 8,323.

The top losers on the Sensex are HUL, Bharti Airtel, NTPC, Bajaj Auto and GAIL, all slipping between 1-3%.

On the gaining side, Vedanta, Coal India, Tata Motors, Sun Pharma and Wipro have gained between 1-2%.


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Updated at 9:30

Markets have rebounded in trades today, tracking positive cues on the global front.

By 9:30, the Sensex was higher by 92 points at 27,665 and the Nifty gained 27 points at 8,356.

However, investors are likely to remain cautious on account of the volatility in the Chinese markets and the unfolding developments with regard to Greece's future in the Euro zone.

According to Angel Broking's report, "The trend deciding level for the day is 27,637 / 8,351 levels. If the Nifty trades above this level during the first half-an-hour of trade then we may witness a further rally up to 27,734 – 27,895 / 8,378 – 8,428 levels. However, if Nifty trades below 27,637 / 8,351 levels for the first half-an-hour of trade then it may correct towards 27,477 – 27,380 / 8,301 – 8,273 levels."

The broader markets are outperforming, with the midcap and smallcap indices adding nearly 1% each. The market breadth is strong. Out of 1,435 stocks traded on the BSE, there are 1,118 advancing stocks as against 280 declines.

Among macro-economic data, India's Index of Industrial Production (IIP) data for the month of May is due today.

Meanwhile, foreign portfolio investors (FPIs) sold shares worth a net Rs 254.10 crore on Thursday, as per provisional data released by the stock exchanges.

TCS Q1 RESULTS

TCS has reported a net profit of Rs 5,708.9 crore, up 12.8% from Rs 5,057.8 crore in the first quarter of FY15. The stock is has slipped by 0.6%.  

At Rs 25,668 crore, revenue was up 16.1% on a year-on-year basis and six per cent sequentially. But revenue growth in dollar terms was below the Street’s estimates.

According to Reliance Securities, “TCS’ revenue was a slight-miss on vertical-specific count while profitability was tad-better on efficiencies and strong performance in core geo. We believe that strong digital adoption (digital revenue at 12.5% of 1Q revenue and growth at double-digit on sequential basis) and large transformational infrastructure deals (improvement in client metrics and infrastructure services) will drive growth ahead mitigating headwinds in energy/insurance/telecom; maintain BUY with Target Price of Rs 3,030.”

GLOBAL MARKETS

World equity markets snapped a five-day sell-off and safe-haven assets such as bonds, the Swiss franc and yen fell on Thursday as Beijing halted a rout in Chinese stocks and Europe revived hopes that Greece could be kept in the euro currency union.

Shares on Wall Street rebounded about 1%, having been dragged into the red for the year on Wednesday by China's market crash, cliff-hanger talks on Greece and a benign yet unsettling glitch on the New York Stock Exchange.

European shares rallied more than 2% as Prime Minister Alexis Tsipras rushed to finalise a package of Greek tax hikes and pension reforms needed to win a new aid lifeline.

Asian shares and the euro gained in early Asian trade on Friday after Greece offered new reform proposals to creditors, raising hopes of a cash-for-reform deal at a weekend summit of European leaders.

MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.3%, but still on track for a weekly loss over 4% in a period marred by a savage correction in Chinese stock markets.

SECTORS & STOCKS

BSE Consumer Durables and Metal indices are up over 1% followed by counters like Healthcare, IT, Auto, Banks, Capital Goods, Oil & Gas, Power and Realty, all gaining by almost 1%. However, BSE FMCG index is down by 0.2%.

The top gainers on the Sensex are Vedanta, BHEL, Wipro, Coal India, ICICI Bank and Tata Motors.

Wipro is set to acquire Designit, a Denmark-based global strategic design firm, for Euro 85 million (Rs 595 crore, or $94 million). The stock is up around 2%.

On the losing side, HUL, GAIL, Bharti Airtel, ITC and Lupin have slipped between 0.1-1%.

JSW Energy is up almost 2% on the NSE after signing a non-binding agreement with Monnet Ispat for initiating due diligence for acquisition of majority stake in Monnet Ispat and Energy’s 1,050-Mw power plant in Odisha.

The Ruias are planning to delist Essar Oil from the Indian stock markets before selling a 49 per cent stake in the company to Russian oil giant Rosneft for $3.2 billion (Rs 20,480 crore). Essar Oil has slipped by nearly 2%.

With Reuters input