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Nifty hovers around 8,530; BSE IT index down 2%

The Sensex is down 42 points at 28,416 and the Nifty has slipped 11 points to trade at 8,527.

SI Reporter  |  Mumbai 

Benchmark indices continue to trade in a narrow range in the morning trades weighed down by technology stocks amid positive global cues.

At 10.40 hrs, the Sensex is down 42 points at 28,416 and the Nifty has slipped 11 points to trade at 8,527.

The broader are outperforming the large counter parts, the BSE Mid and Smallcap indices are up 0.3% each.

Meanwhile, foreign institutional investors were net sellers in Indian equities worth Rs 109.45 crore on Friday, as per provisional stock exchange data.

Rupee:

The rupee is trading weaker at 61.93/94 vs Friday's 61.77/78 close on the back of robust payrolls data.

Global Markets:

Asian stocks eked out gains on Monday in wake of much stronger-than-expected U. S. employment numbers, although sobering data highlighted the sluggishness in the region's key economies and tempered gains.

The dollar hovered at multi-year highs against the yen after Treasury yields spiked on the robust U. S. employment report.

Indicators released on Monday showed that China's trade performance in November was much weaker than expected while Japan's economy in the third quarter shrank more than initially reported.

Shanghai Composite, Straits Times and Hang Seng are trading between 0.3-1.5%.

Key events in focus:

Traders will watch the proceedings of the winter session of parliament for cues. Some progress on reform-centric legislative proposals is expected.

Key macro-economic data, wholesale and consumer price inflation data for November 2014 and industrial output data for October 2014 is scheduled to be released on Friday.

Hot Stocks:

On the sectoral front, BSE IT index is down 2% followed by Teck, Consumer Durables and Capital Goods indices trading lower between 0.3-1.5%. Bankex, Oil & Gas and Metal indices are trading flat. However, BSE FMCG and Realty indices are up between 0.5-1%.

Shares of Infosys have dipped 3.5% after a huge block deal executed on the counter on the National Stock Exchange (NSE). The stock opened at Rs 2,019 and touched a low of Rs 1,988 on NSE.

A total 32.3 million shares representing 2.8% of total equity of Infosys changed hands in multiple block deals in early morning trade. However, the identity of the buyers and sellers could not be yet ascertained.

Following the tandem, TCS is down 2% and Wipro is trading with marginal losses.

Among the metal names, Sesa Sterlite is down nearly 2% after Brokerage house Bank of America Merrill has cut its earnings estimates and also the price target, citing falling crude and iron ore prices. Hindalco has lost 1%.

Drug maker Dr Reddy’s Lab is down 1.3%. However its peer Sun Pharma is up 1.7%.

Bajaj Auto is trading with marginal losses.

The company is looking to raise prices of its two models - Platina and Discover - from next month in order to partially offset increase in input costs. Hero Motocorp, M&M lost 1% each. However, Maruti Suzuki, Tata Motors are up 0.5% each.

Engineering conglomerate L&T has dipped nearly 1%.

SBI is down nearly 0.2%. SBI plans to raise $ 300 million by way of issuing bonds. The proceeds are planned to be used for general corporate purposes. ICICI Bank, HDFC Bank and Axis Bank are trading with marginal losses.

Coal India is up 2% and is the top gainer. State-run monopoly Coal India LtdBSE 2.12 % has sought return of two coal blocks in Odisha that it lost following Supreme Court's September order quashing the allocation of 214 blocks.

ITC extended gains up 1% after media reports suggested that the government was reconsidering a proposal to ban sale of loose cigarettes. However, HUL was down 0.5%.

The power stocks are hogging limelight in the early trades. NTPC and Tata Power are up 0.5% each.

Bharti Airtel, HUL, BHEL are up between 0.3-1.4%.

SpiceJet shares tumble more than 7 percent to 14.75 rupees. The carrier cut its fleet by about a third in September and will operate 22-24 Boeing planes until at least the middle of next year, its CEO said Friday.

Dolphin Offshore Enterprises (India) has surged 8% to Rs 210 on BSE after the company said its wholly-owned subsidiary has received an extension of contract for its accomodation barge Vikrant.

Thermax has rallied 6% to Rs 1,129 in early morning deals on BSE after the company said it has won an order worth Rs 351 crore in Africa to build and commission a captive power plant.

The market breadth is strong on the BSE with 1,200 shares advancing and 984 shares dexlining.

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First Published: Mon, December 08 2014. 10:41 IST
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