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Markets have trimmed gains owing to weakness in healthcare shares with Sun Pharma contributing the most to the losses after the drug maker said its profit might be adversely impacted in financial year 2015-16. Also, FMCG shares are declining on the exchanges with HUL declining 2.5% ahead of the QI results.
Meanwhile, the monsoon session has commenced in the Parliament and investors will look out for the key developments concerning the rollout of GST and the passage of the land acquisition bill.
At 12:00pm, the Sensex was at 28,399 lower by 21 points and the Nifty was at 8,602, down 1 point. In the broader markets, the midcap and smallcap indices were trading flat at 11,232 and 11,779 respectively.
GOLD
Gold stabilised on Tuesday, holding just above a five-year low, but with investors still clinging to views of further price falls a day after the metal lost 4%. Gold is trading above the critical $1,100 an ounce support level.
RUPEE
The rupee depreciated by 7 paise to 63.73 against the dollar due to rise in greenback against other currencies overseas.
RESULTS CAPSULE
Some of the prominent companies due to announce results today are Idea Cellular (up 1%), Hindustan Unilever ( down 2.5%), Cairn India (down 2%), HDFC Bank ( down1%), Asian Paints ( down 0.1%), Eicher Motors ( up 1.3%), Sanofi India (down 0.7%), SKF India (up 0.3%), Bayer CropScience ( up 0.5%), Whirlpool of India (up 1.8%), Indiabulls Housing Finance (,down 0.7%).
STOCK TRENDS
IT major Infosys today reported a Q1 net profit of Rs 3,030 crore, down 2.16% on a sequential basis, but strong volume growth saw the stock rally the most in two years, gaining as much as 15%. The stock has soared 10%. Among its peer, Wipro is up 2.8%.
Shares of Bharti Airtel have rallied nearly 5% after the company said it has entered into exclusive talks with France's Orange to sell its subsidiaries in Africa.
Cipla is trading with marginal gains after the company said that its board of directors at its meeting held yesterday, 20 July 2015, approved a potential investment by FIL Capital Investments (Mauritius) II, or any of its affiliate in a wholly owned subsidiary of Cipla (proposed to be incorporated) to whom Cipla will be divesting its consumer healthcare business on a going-concern basis.
On the flip side, Sun Pharma has slumped over 13% after the drug maker said its profit might be "adversely impacted" in financial year 2015-16 (FY16), owing to expenses related to its integration with Ranbaxy, as well as remedial action at plants under the scanner.
The metal pack is taking a beating in today’s trade. Vedanta, Tata Steel and Hindalco dropped between 2-3%. Vedanta has slipped 4% ahead of the announcement of Cairn India quarterly results.
Oil prices edged lower pushed down by a stronger dollar and oversupply glut of both crude and refined products. RIL, ONGC and GAIL are trading lower between 0.4-2%.
