Markets trim gains; Nifty below 7,550

Markets have trimmed gains in the noon trades with Nifty trading below the 7,550 mark as investors book profits at higher and attractive valuations.

Losses in the metal pack owing to steep decline in Coal India  after the stock turned ex-dividend for Rs 27.40 per share today are capping the upside.

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At 11:55 am, the Sensex is up 94 points to quote at 24,812 and the Nifty50 climbed 27 points to quote at 7,537.

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(updated at 10:55 am)

Markets continue to remain firm led by gains in Index heavyweights amid positive global cues. Buying is seen across the counters led by banks after RBI governor Raghuram Rajan commented that the headline fiscal deficit target for the next financial year (at 3.5 per cent) year is a comfort for the central bank has already hiked hopes of a rate cut.

At 10:55 am, the Sensex is up 184 points to quote at 24,902 and the Nifty50 climbed 54 points to quote at 7,564.

In the banking pack, ICICI Bank, Axis Bank, HDFC Bank, Kotak Mahindra Bank, YES Bank and SBI are up 0.5%-4%.

Other major gainers include Tata Motors, Adani Ports, GAIL, ITC and ONGC up 1%-4%.

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(updated at 9:35 am)

Markets have opened the session on a firm note mirroring gains across the Asian bourses following a higher finish on the Wall Street amid stability in the crude oil prices. The recent bout of capital infusion because of improvement in risk appetite amid a rebound in global commodity prices has lifted the mood.

At 9: 35 am, the S&P BSE Sensex is up 203 points to quote 24,921 at and the Nifty has climbed 60 points to trade at 7,570.

"BSE Sensex registered an intraday high of 24,817 levels but failed to sustain and fell towards 24,550 levels in the previous session. Now it needs to hold above 24,600 zones to continue its up move towards 25,000 and 25,250 zones. However, if it fails to hold 24,500 then it may witness profit booking and decline towards 24,250 and then 24,000 levels," according to Anad Rathi morning note.

Going ahead, markets are likely to react to the sluggish IIP numbers weighed down by manufacturing data which dropped to -2.8% vs -2.4% month-on-month (MoM). Also, participants will keep a close watch on the key macroeconomic parameters WPI and CPI numbers due to be slated later today.

IIP DATA

India's Index of Industrial Production (IIP) for January stood at -1.5 contracting for the third straight month weighed down by manufacturing data which dropped to -2.8% vs -2.4% month-on-month (MoM). Also, the April-January IIP data has slipped to 2.7% against 3.1% (YoY).

GLOBAL MARKETS

Asian equities are trading higher mirroring gains across the Asian bourses following a higher finish on the Wall Street amid stability in the crude oil prices. Data unveiled before the market opened today depicted that Japan's core machinery orders jumped a more-than-expected 15% in January from last month.

Meanwhile, the Bank of Japan's two-day policy meeting begins today where policymakers are likely to discuss this week whether to exempt $90 billion in short-term funds from the BOJ's newly imposed negative interest rate. Japan’s Nikkei, Hong Kong’s Hang Seng and Singapore’s Straits Times and China’s Shanghai Composite are up 1%-2.6%.

Also, Chinese data released over the weekend indicated persistent sluggishness in other key parts of the economy however possessing some few bright signs. Manufacturing output in January and February grew at its weakest pace since 2008, while retail sales soared at their slowest rate since May 2015.

STOCKS IN FOCUS

RIL’s  wholly-owned arm Model Economic Township will develop an electronics manufacturing hub and footwear park at Jhajjar, Haryana with an investment of Rs.1,300 crore. The stock is trading nearly 1% up.

RBI governor Raghuram Rajan's statement that the headline fiscal deficit target for the next financial year (at 3.5 per cent) year is a comfort for the central bank has already hiked hopes of a rate cut. Reacting to the above, ICICI Bank, Axis Bank, HDFC Bank, SBI have gained 0.8%-3.5%.

NMDC, India's largest iron ore miner, has raised iron ore prices by Rs 70-150 a tonne for this month, effective last Friday. The stock is trading over 2% higher.

Eicher Motors said its board has approved payment of interim dividend of Rs 100 per equity share of Rs 10 each for the financial year 2015-16 while, TVS Motors declared the second interim dividend of Rs 1.50 per share (150 per cent) for the financial year 2015-16. The stocks are trading 1% higher each.

Oil exploration majors ONGC, RIL and GAIL are trading higher by 1% on the back of stability in the crude oil prices.

Tata Motors is trading higher by 4% to Rs 369, extending its Friday’s 2% gain on the BSE after the company reported 17% year-on-year increase in group global wholesales, including that of Jaguar Land Rover (JLR) vehicles, at 98,842 units in February 2016. The company had sold 83,951 units in February 2016.

Among other prominent gains include Adani Ports, Hindalco, L&T, BHEL up 1%-4%.

State-owned Coal India is the biggest loser of this hour is trading 6.5% lower. The stock turned ex-dividend for Rs 27.40 per share today. Meanwhile, the company is likely to announce a 5% equity buyback in the new fiscal, helping the Centre raise up to Rs 10,700 crore, or about 19% of its disinvestment target, while the company's earnings are poised to expand as the government plans to help it reduce mounting inventory by selling to any power firm that pays upfront, according to media reports.

Other notable laggards include Bharti Airtel, Dr Reddy’s Lab and Bajaj Auto down 0.1%-1%.