 "Image via Shutterstock")
Benchmark indices managed to trim some of its losses after opening over 200 points lower tracking weak global cues. However, the markets are still reeling under pressure weighed by index heavyweights such as Reliance Industries, HDFC, and ITC.
At 11:30 AM, the Sensex was lower by 80 points at 26,140 and the Nifty has slipped 22 points at 7,957.
However, the broader markets are outperforming the benchmark indices- BSE Midcap and Smallcap indices are up 0.3-1%. The markets breadth turns positive with 1,276 advances and 900 declines.
On the currency front, the rupee depreciated 13 paise to quote at 65.80 against the American dollar.
Meanwhile, the markets will remain volatile ahead of the near-month September derivatives contracts expiry on Thursday, as traders roll-over positions to the October 2015 series.
GLOBAL CUES
The Asian markets are registering losses following the downfall on Wall Street after the US Federal Reserve decided to maintain status quo on short-term interest rates. Japan’s Nikkei is down 2% while Hang Seng is down 1.2%.
However, China’s Shanghai Composite gained 1.3%.
SECTORS & STOCKS
Sectorally, BSE FMCG, Metal and Oil&Gas are down between 0.4-0.5%
Tata Steel has raised more than Rs 4,100 crore through the sale of non-core assets so far this fiscal as part of efforts to strengthen its balance sheet and generate cash. However, Tata Steel has lost 0.9% while Tata Motors have gained 1.3% on the Sensex.
According to media reports, a credit agency added Maruti Suzuki stock to Global Focus list. The stock has gained 1.2%
L&T announced that after appropriate internal clearances, the company is contemplating to sell around 5% of the equity share capital of L&T Finance Holdings. The stock is up nearly 1%
ITC will be doubling its investment in Punjab to Rs 1,400 crore. However, owing to the weakness in the market, the stock has shed nearly 1%.
Index heavyweights HDFC and Reliance Industries are also witnessing sell-off. The stocks have tripped around 1.4% each on the Sensex.
Other major losers are Infosys, TCS, Bharti Airtel, BHEL, Cipla, all down between 0.3-1% each.
SMART MOVERS
Shares of Dish TV India and Den Network are trading higher in a weak market on reports suggesting that the Government is considering a proposal to hike foreign direct investment (FDI) limits to 100% in broadcasting carriage and content services, including direct-to-home (DTH) and cable networks in order to attract overseas investment and improve infrastructure.
Shares of Hotel Leela Venture have jumped 2% to Rs 21.80 on the BSE after the company sold its hotel in Goa for Rs 725 crore.
Shares of drug maker Strides Acrola have gained 3% to quote at Rs 1,180.60 on the BSE after, India’s largest drug maker, Sun Pharma sold the central nervous system (CNS) product business of erstwhile Ranbaxy to Strides Arcolab for an amount of Rs 165 crore.
