Sensex, Nifty trading flat; broader markets outshine

Benchmark indices are trading on a flat note while fluctuating in a narrow range as the losses in FMCG, information technology and select financials have wiped off the gains in private banks and select auto stocks.
 
Investors are cautious ahead of the expiry of April derivatives contracts due on Thursday and the two-day meet of Federal Open Market Committee (FOMC) to review US monetary policy, scheduled to be held on 28-29 April 2015, during which a timeline for the first rate hike in nearly a decade is expected to be provided. 
 
At 12:50PM, the 30-share Sensex and the 50-share Nifty were flat at the mark of 27,160 and 8,217 respectively.

 

In the broader market, both the BSE Midcap and Smallcap indices, up 0.5% each have performed better than the front-liners. Market breadth in BSE is positive with 1,249 advances against 1,146 declines.   
 
Buzzing Stocks
 
Six out of the 12 sectoral indices of BSE are trading higher. BSE Auto index and Bankex up 1.3% each are the top gainers followed by BSE Power and Realty indices, up 0.7% and 0.6% each. BSE FMCG index down 0.8% is the top loser.
 
Selling pressure on IT shares continues unabated following weak set of numbers posted by behemoths like Infosys. Wipro and TCS have declined 0.7% and 0.8% each while Infosys has declined over 1%.

 
Among financials, HDFC twins have shed around 1% each. However, private bank shares like Axis Bank and ICICI Bank have gained 1.6% and 4.6% each.  ICICI Bank has gained significantly and has erased the losses accumulated over the last three weeks after domestic brokerages upgraded the stock with ‘buy’ rating on expectations of improvement in asset quality going forward.
 
Oil stocks like RIL and ONGC have nearly 1% each. Barclays has raised its 2015 and 2016 average crude price forecasts on Tuesday, citing geopolitical tensions, unplanned production outages and lower natural gas prices in the United States.
 

FMCG majors, ITC and HUL have shed over 1% each. The gloomy forecast for the monsoon rains has raised fears of further decline in rural demand which is already under pressure due to the crop damaging unseasonal rains.
 
Bharti Airtel is down over 1% ahead of the release of its fourth quarter results later today.
 
Among major gainers, Maruti Suzuki has extended gains and is up 3% after reporting a strong 61% year on year net profit growth at Rs 1,284 crore for the fourth quarter ended March 31, 2015 (Q4FY15).