Markets trim gains; L&T, BHEL down by 1.2%

Markets trim gains in the morning trades despite the firmness in global markets. The downside is led by Capital Goods and Metal shares.

At 10:30, the Sensex is up by 21 points at 27,682 levels while Nifty is up 8 points at 8,368 levels.

The top gainers on the Sensex are GAIL (India), Sun Pharma, Cipla, Bharti Airtel and TCS, up between 0.8-3.3%.

The top losers on the Sensex are Hindalco, BHEL, L&T, Axis bank, and SBI, down between 0.5-1.5%
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(updated 9:45 AM)

Markets opened the week on a higher note following positive cues from global markets.

The 30-share Sensex opened at 27,739 levels, up by 78 points, while the 50-share Nifty opened just shy of 8,400 at 8,397 up 37 points.

The broader markets are, however, outperforming their larger peers with BSE Midcap and Smallcap indices up by 0.5% each. The market breadth is strong with 944 advances against323 declines on the BSE.

The index of Industrial Production (IIP) data for the month of May, which was released on Friday post market hours, would set the tone of the markets for the session.  The industrial production grew by 2.7% in May 2015 against expectations of 4.4%, led by a sharp fall in capital goods and consumer goods data.

The government will release the Consumer Price Index data (CPI) later in the day today.

The rupee opened at 63.45, depreciating by 6 paise against its previous close of 63.39

RESULTS CALENDAR

IndusInd Bank will declare its Q1 results for FY16 later in the day.

GLOBAL MARKETS

Asian markets are trading higher however, the uncertainty over Greece looms on the markets as an emergency summit of euro zone leaders continues. The European ministers are currently meeting in Brussels to review conditions for Greece to start negotiating bailout terms, including controversial measures such as pension reforms. Nikkei, Taiwan, Kospi are higher by 1% while Shanghai Composite has advanced 2%. Hang Seng is up by 0.4%

US stocks had closed higher on Friday on hopes that Greece would be able to secure fresh funding, which would allow it to avert bankruptcy and remain in the euro zone. The Dow Jones rose 211 points or 1.2% to 17,760 and Nasdaq Composite added 75 points or 1.5% to 4,997.

SECTORS & STOCKS

On the sectoral front, BSE Healthcare index is rallying over 1% followed by BSE IT, up by 0.75%. BSE FMCG and Capital Goods indices are down by 0.1%

Among the pharmaceutical pack, Sun Pharma is rallying over 2% while Cipla, Dr. Reddy’s and Lupin have gained nearly 1%.

M&M plans to raise up to Rs. 5000 crore through issuance of securities on private placement basis in local and global markets after an approval from its shareholders. The stock is up 0.6%

Shares of TCS have advanced 0.8% post its Q1 results.  The IT major 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. Other IT shares have also gained on the Sensex. Infosys is up 0.4% while Wipro is up 0.6%

Shares of Capital Goods have lost sheen on the Sensex post the disappointing IIP numbers.  L&T has lost 0.8% while BHEL is down by 1%

According to a top official from Vedanta, the company will be closing the merger deal with Cairn India by March 2016. Vedanta is down 0.7% while Cairn India is down 2%.

Among other shares, IndusInd Bank is up nearly 1% on NSE ahead of its Q1 results.