Sensex, Nifty remain weak; Coal India falls 4%, RIL up 2%

Benchmark indices have extended losses weighed down by selling pressure among select metal and financial shares, along with weakness in Asian peers leading the decline.

At 11:30AM, the 30-share Sensex was down 157 points at 29,402 and the 50-share Nifty was down 47 points at 8,867.

However, the broader markets are outperforming the benchmark indices- BSE Midcap and Smallcap indices are up 0.2-0.3%.

Market breadth in BSE is marginally positive with 1,086 advances against 932 declines.

Meanwhile, global credit rating agency Moody's Investor Service on Thursday said the recommended reforms in food subsidy and distribution will reduce India's inflationary pressures and fiscal deficit.

On the currency front, at around 11:20 AM, the rupee was trading at 61.51 per dollar vs previous close of 61.40.

ASIAN MARKETS

Asian shares extended losses on Thursday after the Federal Reserve took an upbeat view on the U.S. economy and signalled that it remains firmly on track to raise interest rates this year despite an uncertain global outlook.

A greater likelihood of higher U.S. interest rates this year helped Asian stock indexes follow Wall Street into negative territory. Japan's Nikkei slipped 0.4%, while MSCI's broadest index of Asia-Pacific shares outside Japan extended its drop and was down 1%.

Chinese shares skidded after the official Xinhua news agency said that country's stock regulator will inspect the stock margin trading business of 46 companies, amid concerns that the country's stock markets are becoming over-leveraged and vulnerable to a crash which could strain the financial system.

SECTORAL INDICES

Sectors like Metal, IT, Banks, Auto, Power and Telecom have fallen between 0.3-1%. However, BSE Realty, Consumer Durables and Oil & Gas indices have surged between 1-2%.

Coal India is the top Sense loser, down almost 4% ahead of the government's 5% stake sale by the Offer-for-Sale route by the government tomorrow.

Financials too are weighing on the markets today. HDFC, ICICI Bank, SBI and Axis Bank have declined over 0.4 to 2.3% each. Housing finance major, HDFC has lost nearly 3% ahead of its third-quarter results due later today.

However, HDFC Bank has gained almost 2%. The company has announced plans to raise Rs 10,000 crore through share sale.

ONGC has declined around 2%. Oil slipped to $49 a barrel on Wednesday after an industry report said US crude stocks rose the most in two decades last week, and as a firmer dollar added to pressure on prices.

RIL is trading higher by nearly 3%. According to media reports, RIL has won the contract to supply diesel to the Indian Railways replacing Indian Oil Corporation.

Bharti Airtel has declined over 3%. The Cabinet on Wednesday approved a base price of Rs 3,705 crore per megahertz (MHz) for 3G spectrum auction, a move which would help the government garner over Rs 1 lakh crore along with sale of other mobile frequencies.

Among other shares, orrent Pharmaceuticals witnessed profit taking after the company in a release after market hours said that standalone net profit for the quarter ended December 2014 dipped nearly 10% to Rs 103 crore compared to Rs 114 crore in the same quarter last fiscal.

State-run Bharat Petroleum Corporation has gained over 2% at Rs 720 on the BSE after the company plans to raise $2 billion through medium-term notes to finance its capex initiatives. Fitch Ratings has assigned a 'BBB-' rating to the notes.