Sensex below 26,000; IT index down 1.5%

Sun Pharma, HDFC, HUL along with IT scrips were the major draggers

Markets are trading in a tight range in the absence of any fresh directional cues.  The weakness in technology shares continue to weigh on the benchmark indices.

At 1100 hrs, the Sensex is down 66 points at 25,599 and the Nifty has dipped 19 points to trade at 7,653.

Across the Globe

Asian shares retreated while investors flocked to safe haven assets such as bonds and gold on Thursday, spooked by a Russian troop build-up on the border with Ukraine and tit-for-tat economic sanctions between the West and Moscow.

Sentiment soured further in Asia after the Australian dollar, seen as a barometer of risk appetite, sank after Australia's unemployment rate jumped unexpectedly to a 12-year high, sparking talk of an interest rate cut there.

Japan's Nikkei average fell 0.4%, Hang Seng dipped 0.5%, Straits Times slipped 0.3% and Shanghai Composite dropped 0.6%.

Rupee

The rupee is trading stronger at 61.30/31 versus its Wednesday's close of 61.4950/5050, tracking the dollar's losses versus major currencies. The index of the dollar against six majors is down 0.04%. The pair is seen in 61.10 to 61.60 range during the session. Asian currencies are trading mixed compared with the dollar.

Sectors and Stocks

BSE IT is the top losing index down over 1.5%. Teck, Consumer Durables, Realty and Healthcare indices are losing sheen on the BSE. However, BSE Metal, Oil and gas, FMCG and Capital goods indices are trading in green. BSE Auto, Bankex and Power indices are trading flat.

On the losing end, the shares of information technology (IT) companies are trading  lower by up to 8%, after global IT giant Cognizant scaled down its annual revenue growth estimate citing weakness at certain clients and long sales cycles for certain large deals.

The US-headquartered company said it expected its annual revenue growth for FY14 (Cognizant follows a January-December financial year) to be at least 14%, against the earlier estimate of 16.5%. TCS, Infosys and Wipro are lower between 1-2%.

Drug maker Sun Pharma has lost 1% during the morning trades.Cipla is down 0.4%.

HUL, GAIL and Sesa Sterlite are some of the prominent names in red among the others.

 

On the flip side, fresh buying is visible in the metal pack. Tata Steel and Coal India are up 1.7% and 1%, each.

Oil and Gas majors RIL and ONGC are up 0.5%.

 

L&T and BHEL are up 0.5% during the morning trades.

 

Select auto shares, Tata motors and Hero Motocorp are trading marginally in green.

 

 Among other shares, Stocks of companies associated with the railways have rallied by up to 11% in early morning deals on the bourses after the Union Cabinet on Wednesday cleared the proposal to allow 100% foreign direct investment (FDI) in railway infrastructure.

 

Shares of wagon maker Texmaco Rail and Engineering has rallied 11% to 101 on the Bombay Stock Exchange (BSE).

Kalindee Rail Nirman (Rs 96.65), Titagarh Wagons (Rs 245.55), Hind Rectifiers (Rs 47.80) and Kernex Microsystems (Rs 56.15) have frozen at upper circuit of 5%, while BEML was up 4% at Rs 715 on BSE.

 

The broader markets are in tandem with the large counter parts. BSE Midcap and Smallcap indices have slipped by 0.3% and 0.2%, each.

 

The market breadth is marginally weak on the BSE with 1201 shares declining and 1113 shares advancing.