Sensex dips over 150 points; Infosys, FMCG shares drag

Markets have extended losses and are trading near day’s low weighed down by index heavyweights like Infosys, HDFC and pharma shares.

By 11:20 am, the S&P BSE Sensex was 186 points lower at 26,834 and the Nifty50 dipped 48 points to trade at 8,225.

In global commodities markets, crude oil prices firmed up buoyed by a fall in US crude inventories, a weaker dollar and strong demand.

Back home, the rupee advanced by 6 paise to trade at a fresh four-week high of 66.59 against the US dollar in early trade today on sustained selling of the American currency by banks and exporters.

Top losers from the Sensex pack are Infosys, ITC, Dr Reddy’s Labs, HUL and Hero MotoCorp, all down between 1%-4%.

On the gaining side, NTPC, RIL, ONGC, Tata Steel and GAIL are up 1%-2%.

Infosys has dipped nearly 4% to Rs 1,193 on the BSE after the stock turned ex-dividend for Rs 14.25 per share on Thursday.

Shares of select public sector undertaking (PSU) companies have rallied by up to 15% on the BSE in an otherwise weak market on the back of heavy volumes.

MMTC (up 15% at Rs 45), State Trading Corporation of India (13% at Rs 104) and Hindustan Copper (12% at Rs 53), ITI (9% at Rs 30), Dredging Corporation of India (8% at Rs 414) and HMT (5% at Rs 43) were up 5%-15% on the BSE.

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Updated at 9:30 am

Markets have opened marginally lower, amid mixed global cues, with index heavyweight Infosys and pharma shares leading the decline.

By 9:30 am, the S&P BSE Sensex was 79 points lower at 26,942 and the Nifty50 dipped 19 points to trade at 8,254. Broader markets are outperforming the benchmark indices- BSE Midcap and Smallcap indices are up 0.3% each.

According to Anand Rathi's morning note, “Nifty has to continue to hold above 8,242 zones to witness fresh buying interest towards 8,333-8,350 zones while on downside it has multiple support at 8,220 then 8,150 levels. Index has been holding above its 61.80% retracement of the entire down swing and now 8,333 is the next hurdle which was the high made in the month of October 2015 and caused a sharp selling in the market. Holding above 8333 may bring lots of strength and a start of fresh leg of rally in the market."

Besides, foreign portfolio investors (FPIs) bought shares worth a net Rs 529.16 crore yesterday, 8 June 2016, as per provisional data released by the stock exchanges.

In overseas markets, Asian stocks were mixed. China's consumer inflation rose less than forecast in May as pressure from high food prices eased, while producer prices recovered more than forecast. The consumer price index (CPI) rose 2.0% in May, compared with a 2.3% increase in April.

The producer price index (PPI) fell 2.8% in May, easing from a 3.4% drop in April, and rose 0.5% month-on-month. US stocks rose yesterday, 8 June 2016 with Dow Jones Industrial Average rising above 18,000 for the first time since April as a weaker dollar lifted some commodity-related shares.

Back home, Dr Reddy’s Labs, Infosys, Lupin, ITC and GAIL are down 0.5%-2%.

Infosys turns ex-dividend today for final dividend of Rs 14.25 per share for the year ended 31 March 2016 (FY 2016).  Further, the management of Infosys said that compensation increase and higher visa fees could impact margins in the first quarter of the current fiscal. The stock is down almost 3%.

Lupin is recalling over 54,000 vials of anti-bacterial injection, Ceftriaxone, due to violation of current manufacturing norms. The stock has slipped over 2%. Among othet pharma shares, Dr Reddy’s Labs and Cipla are down 1%-2%.

On the gaining side, Axis Bank, Bajaj Auto, ONGC, RIL and TCS are down 0.3%-1%.

Tata Motors has gained marginally. Tata Motors announced that its global wholesales including Jaguar Land Rover (JLR) rose 10% to 87,414 units in May 2016 over May 2015.

Wipro announced a partnership with Mountain View based Authentise Inc, a leading provider of 3D printing technologies and consulting services. The stock has inched up marginally.