Broader market rallies; most IT shares decline

Key equity indices were trading higher after hitting fresh intraday high in early afternoon trade. At 12:20 IST, the barometer index, the S&P BSE Sensex, was up 72.01 points or 0.20% at 36,135.82. The Nifty 50 index was up 34 points or 0.31% at 10,897.50.

Key indices opened with small losses, but recovered as the session progressed. Weak cues from other Asian shares capped strong gains. The Nifty briefly crossed the 10,900 mark in early afternoon trade.

The market breadth, indicating the overall health of the market, was strong. On BSE, 1862 shares rose and 551 shares fell. A total of 149 shares were unchanged.

Among secondary barometers, the BSE Mid-Cap index was up 1.46%. The BSE Small-Cap index was up 2.36%. Both these indices outperformed the Sensex.

Most IT shares declined. Tech Mahindra (down 2.46%), MphasiS (down 2.45%), MindTree (down 1.64%), Wipro (down 1.61%), Infosys (down 0.82%), HCL Technologies (down 0.33%) and TCS (down 0.25%), edged lower. Hexaware Technologies (up 0.01%), Oracle Financial Services Software (up 0.36%) and Persistent Systems (up 1.51%), edged higher.

Pharmaceutical shares were mixed. IPCA Laboratories (up 2.37%), Piramal Enterprises (up 2.27%), Cadila Healthcare (up 1.18%), Wockhardt (up 0.97%), Aurobindo Pharma (up 0.96%), Glenmark Pharmaceuticals (up 0.92%), Sun Pharmaceutical Industries (up 0.48%), Strides Shasun (up 0.18%) and Divi's Laboratories (up 0.09%), edged higher. GlaxoSmithKline Pharmaceuticals (down 0.02%), Lupin (down 0.41%), Alkem Laboratories (down 0.43%), Cipla (down 0.48%) and Dr Reddy's Laboratories (down 0.73%), edged lower.

On the economic front, economic conditions in India's dominant service sector remained positive in February, with a quicker expansion in new work supporting a faster increase in output and solid job creation. Rising from 52.2 in January to 52.5 in February, the seasonally adjusted Nikkei India Services Business Activity Index pointed to a moderate though quicker upturn in output.

With growth of manufacturing production also gathering momentum in February, the seasonally adjusted Nikkei India Composite PMI Output Index rose from 53.6 in January to 53.8 to signal a solid and accelerated increase in private sector activity in the country.

Overseas, Asian stocks declined Tuesday following an overnight slip on Wall Street. China cut its economic growth target and pledged measures to support the economy amid growing challenges from rising debt and a dispute over trade and technology with the United States. China cut its growth target for this year to 6-6.5%, from around 6.5% last year.

US stocks declined on Monday, as investors turned cautious after initially cheering reports that the US and China were close to completing a landmark trade deal. Concerns that stocks are becoming too expensive on the back of a two-month rally from December lows also weighed on sentiment.

The US Commerce Department said that construction spending fell by 0.6% in December.

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