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Benchmark share indices which had ended at three-month closing highs witnessed profit taking in select financials capping further upside even as IT shares continued to trade firm. Further, rising concerns over weak monsoon in July also weighed on sentiment.
At 1:30PM, the 30-share Sensex was up 24 points at 28,470 and 50-share Nifty was up 5 points at 8,613.
Meanwhile, bargain hunting was seen in the broader market with fundamentally sound stocks witnessing buying interest.The BSE Mid-cap index was up 0.4% and the Small-cap index was up 0.7%.
The Indian rupee was trading marginally higher against the Us dollar amid sales by exporters on the back of rising foreign capital inflows.
Meanwhile, foreign institutional investors were net buyers in domestic equities to the tune of Rs 746 crore.
OIL
Oil prices edged up on Friday but ongoing concerns about a global supply glut coupled with increasing dollar strength is likely to weigh on the downside. NYMEX crude for August delivery was marginally higher at $51/barrel.
MONSOON
Monsoon during the first half of July, the main month for sowing of kharif crops was 32% below normal as a result of which large tracts of central and southern India remained dry. Production of pulses and oilseeds could be impacted unless there is sufficient rainfall during the second half of this month. July is traditionally when there is the largest amount of rain in the four-month monsoon.
SECTORS & STOCKS
BSE Bankex and Metal indices were among the top losers while Capital Goods, FMCG, Healthcare and Consumer Durables were among the gainers.
On Thursday, the Cabinet cleared a proposal to merge the limits of foreign direct and portfolio investments into composite caps to make foreign investment regime easier. Composite caps have been suggested for sectors like agriculture, tea plantations, petroleum and natural gas, manufacturing, airports, real estate, telecommunications, mining, non-banking financial companies and pharmaceuticals.
Financials were trading pack, HDFC, HDFC Bank, were down 0.4-1.8% each while SBI, Axis Bank and ICICI Bank were trading with marginally higher.
Sun Pharma was trading higher by 1% after CLSA upgraded the stock. Among others, Lupin and Cipla are up 0.8-0.9% each.
Oil and Gas major ONGC gained 0.6% on talk that its overseas arm ONGC Videsh is in a race to acquire two out of 14 blocks being offered by Mexico in historic auctions that are part of the Latin American nation’s energy reforms. RIL was trading flat with positive bias.
Telecom major Bharti Airtel was up nearly 1% on reports that it is conducting 4G trials in Hubli and Dharwad.
Tata Steel was up 1% after the company announced its plans to refocus its speciality and bar business on high-value markets such as aerospace.
Tata Motors is marginally down as it has proposed to raise Rs 4,400 crore from non-convertible debentures during the current fiscal to meet its expansion plan.
Among other shares, shares of Fag Bearings India were up nearly 3% at Rs 4,310 on the Bombay Stock Exchange after the company reported 20% rise in net profit at Rs 429 crore compared with Rs 388 crore in the same quarter last fiscal.
Crompton Greaves were up nearly 2% at Rs 196 on the Bombay Stock Exchange after the company announced that it has signed a new contract to provide ZIV protections for Saudi Electricity Company, the largest power utility company in the Middle East.
Deep Industries have locked in upper circuit of 20% at Rs 117, also its 52-week high on the BSE, on back of heavy volumes.
