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(updated at 2.35 PM)
After making a firm opening, benchmark indices are trading marginally lower tracking weak global cues and selling in IT shares. However, buying among auto and capital goods shares has capped the downslide.
At 14.35 PM, the 30-share Sensex has slipped 63 points at 27,825 and the 50-share Nifty has shed 20 points to trade at 8,375.
However, broader markets are outperforming the benchmark indices- BSE Midcap and Smallcap indices are up over 0.4%. The market breadth in BSE remains positive with 1,563 shares advancing and 1,271 shares declining.
Meanwhile, foreign institutional investors were net buyers in equities to the tune of Rs 260 crore on Friday, as per provisional data released by the Bombay Stock Exchange.
The Indian rupee was trading lower at Rs 63.34 compared to its Friday close of Rs 63.30 due to rise in the greenback’s value against other currencies overseas.
Markets are expected to consolidate gains this week and investors would take cues from earnings with Infosys kicking off the December-quarter result season on Friday.
SECTORS & STOCKS
BSE Auto, Consumer Durables and Capital Goods indices have surged over 1%. However, BSE IT index has slumped nearly 1%.
Capital Goods stocks have gained on robust PMI data for the month of December which was at its highest since end-2012.
Larsen and Toubro has gained around 2% after the company said it has won orders worth of Rs 4,006 crore in the month of December 2014. Also, Citi upgraded L&T stock to buy from neutral citing an expected turn around in the company’s defence manufacturing business on the back of large defence orders the company has received. The stock is up 2%.
Auto stocks have started the week on a robust note as the release of sales volume data for the month of December has commenced. Tata Motors has gained around 1%. On Friday, Tata Motors reported a 10% increase in total sales at 41,734 units in December, as against 37,836 units in the same month last year.
Maruti Suzuki has gained around 2.7%. The company reported 21% growth in sales during December 2014 compared to the same month last year. Also, CLSA has retained Maruti Suzuki as top auto pick in 2015 citing new products, improvements in pricing and large margin expansion of yen among other factors which are likely to help the company to reap larger profits in 2015.
Among other auto stocks, Hero Motocorp, Bajaj Auto and M&M have gained 1% each.
Financials are trading mixed post the two-day banking retreat. ICICI Bank and Axis Bank have gained 0.6% and 0.4% each. Morgan Stanley maintains an “overweight” on Axis Bank.
HDFC twins have shed between 0.7-1.2% and SBI is lower by 0.5%. In a release to BSE, SBI has said that United Forum of Bank Unions (UFBU) has given a notice to Indian Banks” Association calling for nationwide Bank strike, on the 7th and 21st to 24th January 2015. Since the call is for nationwide all-Banks strike, the SBI will not be separately impacted, if the strike materialises.
Coal India is transporting extra volumes of coal to power plants ahead of a five-day worker union strike that threatens to cut much of its per-day output of 1.6 million tonne, two company officials told Reuters on Monday. Coal India is trading marginally positive.
Other notable gainers are Tata Steel, ONGC, Cipla, GAIL and Sesa Sterlite.
Prominent losers from the Sensex pack are Dr Reddy’s Labs, BHEL, Bharti Airtel and Hindalco.
Among other shares, Nandan Denim (formerly known as Nandan Exim) is locked in upper circuit of 20% at Rs 83.85 on BSE after it was announced that Devkinandan Corporation LLP, one of the promoters, further increased its stake in the company via open market.
GLOBAL MARKETS
The euro hit a nearly nine-year low versus the dollar on Monday as investors bet on quantitative easing by the European Central Bank while soft manufacturing surveys pushed down shares and sent oil prices to 5 1/2-year lows.
Japan’s Nikkei fell 0.2% on the first trading day of the year. Chinese shares, however, maintained their bullish tone since last year on hopes of more stimulus, as property shares jumped on local media reports saying mortgage restrictions had been loosened.
Data for UK construction purchasing manager’s index (PMI) for December will be unveiled on today, followed by the ISM Services PMI data for the US on Tuesday. US nonfarm payrolls and unemployment rate data are also scheduled for release later in the week.