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Market continued to trade sideways a day after key indices touched their record high closing levels.
At 10:30am, the 30-share Sensex was trading 28 points lower at 22,027 levels while the 50-unit Nifty was flat at 6,582 levels. RIL and ONGC will be directly affected by Election Commission's (EC) decision to defer the notification of the new gas price until general elections , which was to take effect from April 1.
RIL and ONGC are the top losing heavyweight stocks at this hour; collectively they pulled the benchmark Sensex down by 70 points at his hour.
Other notable losers are TCS, Infosys, Wipro, M&M and Bharti Airtel. IT stocks are under pressure owing to the recent change in trend as investors turned to cyclicals from defensive play such as IT. Rupee appreciation and unfavorable guidance from industry majors TCS, Infosys, for the fourth quarter are other major factors turning the tide against software and technology stocks.
BSE Oil & gas, IT and TECk were top losers among sectors at this hour while BSE Power, metal, consumer durables are gaining.
(Updated at 10:30 am)
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Market opened lower tracking weakness in global markets. Asian shares were in a defensive mode on Tuesday after Wall Street fell overnight, though still-vague hopes of a new stimulus plan in China could improve investor sentiment.
At 9:40am, the 30-share Sensex was trading 52 points lower at 22,003 levels while the 50-unit Nifty was down 6 points at 6,577 levels.
Broader markets outperform the benchmarks at this hour; both the BSE mid-cap and small-cap indices were up 0.2% as compared to a 0.2% dip in the Sensex.
The rupee strengthened to its highest level in more than seven months on Tuesday, tracking broad global losses in the dollar and as foreign investors continued to buy into record-setting rally in domestic shares this month.
The US dollar nursed broad losses early on Tuesday, having come under pressure late in New York as investors bought the euro and drove the Australian dollar to its highest this year.
The partially convertible rupee was trading at 60.51 per dollar at 10:00 am, its strongest level since August 12 and higher than its Monday's close of 60.77/78.
Market mix
Among the BSE indices that track stocks of various industrial sectors, BSE Power, FMCG and bankex were up between 0.5-0.6%.
Nearly all sectors are trading with gains barring Oil & gas and IT. BSE Oil & gas is down 2.2% owing to a subdued sentiment as Election Commission (EC) deferred the notification of the new gas price until general elections , which was to take effect from April 1.
Reliance Industries is the top loser, currently trading 3% lower, as EC's decision directly affects the Mukesh Ambani promoted company.
HDFC Bank, ITC, HDFC, Sun Pharma and SBI, which are up between 0.6-1%, are the top gaining blue-chips at this hour.
796 stocks advanced while 664 stocks decline on the BSE.
A day earlier, key stock indices closed at their record high levels on strong foreign buying. On Monday, FIIs net-bought shares worth Rs 1,465.62 crore, according to provisional data. The BSE Sensex touched an all-time high of 22,074 but closed lower at 22,055, up 300 points, or 1.4 per cent, from previous close.
The NSE Nifty hit its all-time high at 6,591, up 89 points, or 1.4 per cent. The rupee closed at 60.78 a dollar, up 0.2 per cent from its Friday close.
What to watch
The F&O expiry will keep investors cautious for swings on either side. The rupee movement will also be eyed. Tracking strong performance in Indian stocks, the rupee on Monday appreciated 14 paise against the dollar to end at an over six-and-a-half month closing peak of 60.79, buoyed by sustained capital inflows. The RBI Governor Raghuram Rajan and deputy governors will attend a monetary policy strategy meeting later today.
Around the globe
U.S. President Barack Obama and major industrialized allies warned Russia on Monday it faced damaging economic sanctions if President Vladimir Putin takes further action to destabilize Ukraine following the seizure of Crimea.
On Wall Street, the Nasdaq Composite Index led the losses with a fall of 1.2 percent to five-week low, as investors took some money off recent top performers such as biotech shares. The S&P500 fell 0.5 percent to 1,857.44.
Concerns over Ukraine and soft U.S. manufacturing were cited as possible catalyst, though market players noted the selling could also reflect unwinding of positions ahead of the quarter-end.
The survey on U.S. manufacturing by financial data firm Markit also showed U.S. manufacturing activity slowed in March.
U.S. President Barack Obama and major industrialized allies warned Russia on Monday it faces additional economic sanctions if President Vladimir Putin takes further action to destabilize Ukraine following the seizure of Crimea.
Stock play
Shares of oil and gas companies like Reliance Industries (RIL), Oil and Natural Gas Corporation (ONGC) and Oil India are trading lower by up to 4% in early morning deals on the BSE after the Election Commission (EC) has ordered deferment of an increase in gas prices that was to take effect from April 1, 2014.
ONGC has dipped 4% to Rs 308, while RIL and Oil India are down 3% each at Rs 470 and Rs 879 respectively. EC stated that the decision on quantum of increase in gas price should be decided by the new government that will be formed after the general election.
Reliance Industries and ONGC were likely to be key beneficiaries of increase in gas price.
