Sensex tests 27,000 mark; Nifty below 8,200

Global cues, F&O expiry dent sentiment. IT, metal stocks drag

The markets are jittery this morning as discouraging cues from the Asian bourses and unwinding pressure ahead of the impending April derivatives expiry seem to be spooking the market participants.

At 10:30 am, the Sensex was quoting at 27,000 levels, lower by 227 points and the Nifty was at 8,172, down 66 points. The broader markets were also trading weak in tandem with the benchmark indices, with the midcap and smallcap indices losing around 0.5% each.

The Sensex had shed 170 points and Nifty had ended below the technically crucial 8,250 mark on Wednesday in what was a volatile session of trade. There is no respite in selling pressure this morning either, and unwinding of positions ahead of the impending April derivatives expiry later in the day is set to make it another volatile session of trade.

Among corporate earnings, IDFC will announce its Q4 results during the day. In related news, IDFC is set to exit the Nifty index from May 29, according to the changes announced by India Index Services & Products Ltd (IISL), an NSE group comapny that manages Nifty and other indices.

The markets are shut on Friday on account of Maharashtra Day.

GLOBAL MARKETS

Asian stocks slipped early on Thursday after US data overnight showed the economy grew much more slowly than expected in the first quarter. MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.5%. Japanese shares witnessed selling pressure after markets opened for trading after a holiday on Wednesday. The benchmark Nikkei has tanked by 2.5%, while Hang Seng and Kospi indices have lost about 1% each.

SECTORS AND STOCKS

All the sectoral indices are in the red, with metal and IT doing the most damage. In the metal space, Vedanta, JSW Steel, Tata Steel and Jindal Steel have lost between 1% and 4% each. In the IT space, TCS and Infosys have shed more than 1% each, while Wipro has lost about 0.5%.

Among the Sensex stocks, HDFC has extended its previous day’s weakness after it posted marginal 8% growth in standalone net profit for the March quarter at Rs 1,862 crore. The stock is quoting at Rs 1169, lower by 2.7%, to emerge as the top loser on the Sensex. M&M, Bharti Airtel, Dr Reddy's, Hindustan Unilever, Coal India and Bajaj Auto have lost over 2% each.

On the other hand, Axis Bank has extended its previous day's gains after the bank’s net profit grew 18% to Rs 2,181 crore on the back of a 20% in net interest income and 21% increase in other income. The stock has rallied 4.2% at Rs 576 in an otherwise weak market to emerge as the top gainer on the BSE.

Bengaluru-based biopharma major Biocon has firmed up by 2.9% at Rs 456 after reporting a 78% rise in its net profit for Q4 FY15 to Rs 201 crore.

Jindal Steel & Power has slipped by 4% at Rs 139 on reports that the CBI on Wednesday filed a chargesheet against Chairman Naveen Jindal, former Jharkhand chief minister Madhu Koda, former minister of state for coal Dasari Narayan Rao and former coal secretary H C Gupta, for an alleged conspiracy in securing a coal block in Jharkhand.

The market breath is weak. Out of 1,904 stocks traded on the BSE, there are 799 advancing stocks as against 1048 declines.