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The markets are trading in a narrow range with Sensex and Nifty swinging between negative and positive zone. The Sensex is up 20 points at 18,709 and the Nifty is higher by 4 points at 5,637. The broader markets are however underperforming the benchmark indices.
The BSE mid-cap index has slipped 0.43% or 6,034 and the small-cap index is down 0.12% or 7 points at 5,720.
Sunteck Realty is the top loser from the Midcap space, down almost 6%. India Tourism Development Corporation, Aurobindo Pharma, Tata Teleservices (Maharashtra), Delta Corp and Housing Development & Infrastructure have slipped between 4-5%.
Shares of select public sector undertaking (PSU) banks have fallen up to 4% in early noon deals after global rating agency Moody’s downgraded its Standalone Bank Financial Strength Rating (BFSR) for three public sector banks on concerns of falling asset quality, pressure on profitability and capital generation.
Among the individual stocks, Syndicate Bank is down almost 4% at Rs 108 on BSE, while Indian Overseas Bank and Oriental Bank of Commerce are down by 3% each at Rs 64 and Rs 232 respectively.
Share of Pantaloon Retail has declined after the announcement that L&T General Insurance will be merged with Future Generali Insurance.
Pantaloon Retail shares declined 1.7% and were trading at Rs 143.60. However, L&T Finance Holdings shares rose 2.45%.
Colgate-Palmolive (India) has dipped over 3% at Rs 1,239 after the company said it plans to sell a division to a unit of its holding company, U.S.-based Colgate Palmolive Co., for a total consideration of Rs 59.89 crore.
Shares in Tech Mahindra Ltd fall 1.9%, while Satyam Computer Services Ltd drops 1.6%, a day after the companies said a long-planned merger between the two had been delayed by an additional six months up to September 30.
On the gaining side, Balmer Lawrie & Company is trading higher by 3% to Rs 615 on the Bombay Stock Exchange (BSE) ahead of its board meeting today to consider a maiden bonus issue proposal.
Shares in Wockhardt Ltd gain 2% rupees after Bank of America-Merrill Lynch initiates coverage on the stock with a "buy" rating and a target price of 2,565 rupees.
Morgan Stanley upgrades Reliance Communications Ltd to "equal-weight" from "underweight," citing improving outlook for the telecoms sector due to higher tariffs, falling capex, and "more attractive" valuations.
The overall breadth of the BSE mid-cap index is marginally negative as 134 stocks are declining while 112 are advancing.
