Benchmark indices have recovered from day’s low but continue to remain negative weighed down by index heavyweight shares like HDFC, ITC and Infosys. The downside is limited due to buying demand among pharma and Reliance Industries shares.
At 11:40am, the S&P BSE Sensex was down 71 points at 24,830 and the Nifty50 was down 19 points at 7,595. The broader markets are, however, outperforming the benchmark indices- BSE Midcap and Smallcap indices are up 0.2% each.
"Nifty50 has breached 7,580 and this opens for target of 6,800 by end of May 2016 itself. Now our stop loss for aggressive traders is 7,780 all spot basis, says AK Prabhakar, Head of Research, IDBI Capital.
He further adds, “We continue to be negative on markets in the medium term with 6600 & 6300 levels. We advise to use rally till 7800-7900 to sell Nifty with stop of 8040 target 6600 & 6300 in next 3-5 month.”
Further, foreign portfolio investors (FPIs) sold shares worth a net Rs 493.56 crore yesterday as per provisional data released by the stock exchanges.
Rupee strengthened by 14 paise to 66.52 against the US dollar in early trade on fresh selling of the American currency by exporters.
Crude prices extended gains in Asia today following a sizeable drop in US stockpiles, the first decline in seven weeks, indicating stronger demand in the world's top oil consumer.
Among overseas markets, the yen powered to 17-month peaks on Thursday, trampling Japanese exporter stocks in the process, while a broadly soft dollar gave extra legs to a rally in oil prices.
The profit-eroding rise in the yen kept the Nikkei near flat for the day. The index has shed more than 7 percent in the past two weeks and weighed on sentiment across Asia.
Markets in China, Taiwan and South Korea were all lower, while MSCI's broadest index of Asia-Pacific shares outside Japan was up a whisker.
Back home, top losers from the Sensex pack are Maruti Suzuki, HDFC, Adani Ports, Infosys and Bharti Airtel.
Infosys has dipped 3% to Rs 1,164, falling 4% from its intra-day high on the BSE, after nearly six million equity shares changed hands via multiple block deals.
The Union Cabinet yesterday approved the modifications in the policy for liberalisation of administratively allotted spectrum where market determined prices are not available. Shares of telecom companies like Bharti Airtel and Idea Cellular are down 1%-2%.
Housing Development Finance Corporation (HDFC) is planning to make an additional one-time special provision of Rs 450 crore in the fourth quarter ended March 2016, to further strengthen balance sheet. The stock has slipped by 2%.
On the gaining side, Dr Reddy’s Labs, Lupin, Coal India, BHEL and M&M are up 1%-2%.
BROADER MARKETS OUTSHINE
Shares of Diamond Power Infrastructure zoomed 15% to Rs 27 on the Bombay Stock Exchange after Kotak Mahindra Bank said that its subsidiary has acquired stake in Diamond Power Infrastructure.
Shree Pushkar Chemicals & Fertilisers has rallied 7% to Rs 143, highest level since its listing on September 10, 2015 on the BSE. The stock has appreciated more than 100% compared to its initial public offer (IPO) price of Rs 65 per share.
Future Retail (FRL) has rallied 5% to Rs 136 on the BSE in early morning trade in otherwise subdued market after the company said the asset management firm SSG Capital Management will acquire 40% stake in Future Supply Chain Solutions (FSC) from existing shareholders, including Future Retail, for Rs 580 crore.
With Reuters input
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