Nifty struggles below 8,100 as European markets lose sheen

10 out of 12 sectoral indices are trading in the negative territory with BSE IT index down 1.6%

After a weak opening, markets continue to struggle with Nifty facing resistance above 8,100 as investors book profits at higher and attractive valuations. A sharp plunge in the oil prices pushed the Asian stocks lower with European peers joining the tandem which further hurt trading sentiments.

At 2 PM, BSE Sensex was at 26,748, down by 155 points while CNX Nifty is at 8,098, down 45 points. In the broader market, BSE Midcap index is down 0.3% and BSE Smallcap index is trading flat.

MACRO-ECONOMIC DATA

Industrial Production grew by 6.4% for the month of August, an improvement over the 4.2% growth registered in the previous month of June, official data showed on Monday.

However, India's retail inflation based on the consumer price index (CPI) for September increased to 4.41%, from 3.74% recorded for the previous month, on the back of higher food prices, official data showed on Monday.

STOCK TRENDS

Capital goods majors surge after the Industrial Production grew by 6.4% for the month of August, over the 4.2% growth registered in the previous month of June. BHEL is up 1% while L&T is down 1%.

The metal pack is witnessing some profit booking after the surge yesterday. Vedanta, Tata Steel, Hindalco have all lost between 0.8-4.5%.

Hindalco has dipped over 4% after the Supreme Court on Monday asked the Central Bureau of Investigation to take necessary action in relation to cash, a diary and other documents seized from the premises of the company.

TCS is down 0.2% on caution ahead of its September quarter earnings. 

Infosys extends its yesterday’s decline and is down 2.7% as the company stuck to its revenue growth guidance of 10-12% growth for FY16 despite good September quarter numbers.

The international consultant appointed to give its technical findings in a gas dispute between ONGC and Reliance Industries (RIL) submitted an interim report on Friday, stating around nine billion cubic metres (bcm) of natural gas may have flown out from ONGC’s block in the Krishna-Godavari basin to RIL’s adjoining reservoir. ONGC has slipped 4% while Reliance Industries has lost 0.6%. Meanwhile, the sharp plunge in oil prices have contributed to the decline.

Mahindra & Mahindra has been assigned BBB- rating by Standard & Poor's rating service, the company said in a BSE filing. The stock is down 0.3%.