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Markets gave off its early gains after Asian shares fell to a two-year low on Tuesday on worries that cooling demand in China will weigh on the trade-reliant region.
Meanwhile, rating agency Moody's Investors Service on Tuesday scaled down its projections for India's economic growth for 2015-16 to 7% from an earlier estimate of 7.5% on deficient monsoon which hurt the sentiments.
At 12.05 PM, the Sensex was at 27,883, higher by 5 points and the Nifty was at 8,476, down 1 point.
The metal pack which was trading in green in the early trades have slipped in red on concerns regarding slowdown in China. Vedanta, Coal India and Hindalco are trading lower between 0.5-2%.
Oil and Gas shares are trading under pressure on further decline in crude prices. RIL, ONGC and GAIL are down between 0.5-3.5%.
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(updated at 11:20 AM)The benchmark indices are holding firm this morning, post the minor correction witnessed in the previous session, thanks to gains in the information technology pack.
At 11.20 AM, the Sensex was at 27,963, higher by 84 points or 0.3% and the Nifty was at 8,504, up 26 points.
The broader markets are witnessing buying interest, with the BSE Midcap index gaining 0.7% at 11,576 and smallcap index adding 1% at 11,913. The market breadth is positive, with 1,516 advancing stocks versus 811 declines.
Meanwhile, the rating agency Moody's Investors Service has lowered India's growth forecast to 7% for 2015, from 7.5% projected earlier, citing lower-than-expected rainfall and cautioned that slow pace of reforms could pose further risks to growth.
SECTORS AND STOCKS
The information technology (IT) companies are doing well this morning following gains in U.S. equities as strong homebuilder data added to signs of an improvement in the world’s biggest economy. Infosys has jumped by nearly 3% at Rs 1,174 to emerge as the biggest gainer on the BSE. The stock has rallied by nearly 26% from its recent lows of Rs 938 on July 10, 2015. TCS and Wipro are the other significant gainers among the largecap IT names. In the larger IT universe, Mindtree, Tech Mahindra and HCL Technologies are up 1%-3% each.
Metal stocks have staged a recovery on the back of weak Yuan amid Chinese slowdown. Tata Steel, Vedanta and Hindalco are trading higher by 1-2% each. SBI has extended its previous day's gains by another 2% on the back of the government's moves to reform the PSU banking space.
Tea and coffee companies have soared by up to 9% each on the bourses on reports that the government is considering allowing foreign direct investment (FDI) in coffee plantation sectors. Among individual stocks, Tata Coffee has rallied 9% to Rs 105 on the BSE, while CCL Products, Mcleod Russel India, Andrew Yule & Company, Bombay Burmah Trading Corporation, Tata Global Beverages and Jayshree Tea have surged by 4-8% each.
In other coffee-related news, the Sebi has given its nod to Coffee Day Enterprises to launch an initial public offering, according to the bankers. India's largest coffee chain is planning to raise about Rs 1,200 crore to expand its retail network and reduce debt.
Tyre stocks are also seeing buying interest, with Goodyear India, Apollo Tyres and CEAT gaining 1-2% each.
On the other hand, Gail, Cipla and Coal India have shed 1-3% each on the BSE.
