Markets remain subdued on profit taking; L&T Technology Services lists at Rs 920

Markets remain subdued on profit taking; L&T Technology Services lists at Rs 920

Markets are trading in a subdued note tracking mixed global cues on account of booking profits after the recent run-up.

At 9:30 am, the S&P BSE Sensex slipped 48 points at 28,725 and the Nifty50 dipped 9 points to trade at 8,858. Among broader markets, BSE Midcap and Smallcapindices are up 0.3%-0.5%.

“Subdued trading is expected early in the day inside the 8890-8860 region. Breakout beyond the same is expected, but a directional move is less likely. Downsides look limited, but upsides in the near term look more limited, suggesting that bearishness should dominate,” adds Geojit BNP Paribas in a technical note.

ALSO READ: Stock picks from Motilal Oswal Securities; buy HDFC, Aurobindo Pharma

On Thursday, Indian equities surged mirroring strong global markets after the US Federal Reserve kept interest rates at a near-record low, but hinted a hike could come in December.

On the macro-economic front, the government, on Thursday, appointed three academics to the panel. The RBI has already appointed its members to the panel.

The government nominees are Chetan Ghate, professor, Indian Statistical Institute; Pami Dua, director, Delhi School of Economics; and Ravindra H Dholakia, professor, Indian Institute of Management-Ahmedabad (IIM-A).

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Nifty hovers above 8,550; Tata Motors up 4%

Nifty hovers above 8,550; Tata Motors up 4%

Markets have shrugged off the clearance of GST in the upper house and are trading in a narrow range with Sensex and Nifty swinging between negative and positive zone.

By 10:25 am, the S&P BSE Sensex was up 48 points at 27,746 and the Nifty50 gained 14 points to trade 8,559. Broader markets are outperforming the benchmark indices- BSE Midcap and Smallcap indices are up 0.5% each.

"Contrary to popular belief, the passage of the GST Constitutional Amendment marks only the beginning of a fairly tedious procedure that should ultimately result in the implementation of a unified GST in India at best by 2HFY18. Even as the adoption of a unified GST is one of the most remarkable tax reforms from a long-term perspective, in the short-term we highlight that this is likely to result in (1) a mild pick-up in inflation as hitherto untaxed goods and services are now brought under the tax net, (2) a meaningful loss of jobs in the informal sector as this sector will no longer be able to fly under the radar of the taxman and (3) consequently trigger pro-electorate measures in the form of higher revenue expenditure from FY18 onwards as the Modi-led BJP Government begins preparing for the 2019 General Elections," adds Ritika Mankar Mukherjee, Senior Economist, Ambit Capital.(more)

Markets remain under pressure; Indigo flies on debut

Markets are still reeling under pressure weighed down by technology, metal and oil & gas shares.

The possibility of a Fed rate hike in December has also dampened the investors’ sentiment. Markets had a knee jerk reaction yesterday to BJP’s loss in Bihar elections thus fearing that the key reforms may again get stalled in the winter session of Parliament, which begins end of November.

At 11 AM, the Sensex was at 25,950, down by 170 points while the Nifty opened at 7,853 levels, down by 63

Shares of Interglobe Aviation, the company that operates IndiGo airlines, made its debut today, listing at Rs 856, up 12 per cent.

The top gainers on the Sensex are Hero Motocorp, Bajaj Auto, M&M, Axis Bank  and Maruti, all up between 0.7-1.5% each

The top losers on the Sensex are GAIl, BHEL, Hindalco, Dr Reddy’s, and ONGC, all down between 1-4% each
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(updated 9:40 am)

Markets, extending their losses from yesterday, opened the session on a lower note tracking weak global cues as investors are wary of a possibility of the US Fed rate hike in December.

At 9:40 AM, the Sensex was at 26,018, down by 102 points while the Nifty opened at 7,877 level, down by 38

Interglobe,The broader markets are displaying a divergent trend with BSE Midcap index was down by 0.3% while BSE Smallcap index is up by 0.2%. The market breadth is positive with 669 advances against 459 declines on the BSE.

Also, market participants would be on an edge today as some of the notable companies are expected to announce their quarterly results today.

On the earnings front, Hindalco, NMDC, J Kumar Infra among others are likely to release their results today

GLOBAL MARKET

Asian shares are trading lower on prospects of an interest rate hike by the Federal Reserve in the month of December on the back of strong US jobs data indicating a strong US economy. Japan’s Nikkei, Hong Kong’s Hang Seng dropped between 0.5-1.2%. Meanwhile, China’s Shanghai Composite is ytrading flat with a positive bias.

SECTORS AND STOCKS

Sectorally, BSE Consumer Durables is up 1% while BSE Metal index is down 1.1%

The top gainers on the Sensex are Axis Bank, Tata Motors, Bajaj Auto, Hero Motocopr and ICICI Bank, all up between 0.6-1% each

The top losers on the Sensex are BHEL, Hindalco, Dr. Reddy’s Gail and ONGC, all down between 1.4-2.6% each.

Tata Motors has extended its gains from yesterday and has advanced nearly 1% on the Sensex on the back of a new proposed cost cutting plan of JLR.

ONGC has slipped again today on the back of a disappointing quarter. The stock is down by 2.7%

Hindalco is expected to announce the quarterly results today. The stock has dipped 2.5%

Extending its losses for the second day, Dr. Reddy’s has dropped another 1.7% on the back of the warning letter issued by the US Food and Drug Administration (USFDA)

Shares of Interglobe Aviation, the company that operates IndiGo airlines, will make their trading debut today on the bourses. Interglobe has fixed the issue price at Rs 765 per share .

JSW Steel’s crude steel production fell 2 per cent to 10.22 lakh tonnes in October this year.  The stock has dropped 0.5%

Nestle India is likely to remain in focus after Maggi returned to shop shelves in 100 cities on Monday, five months after the instant noodles brand was pulled out of the markets over safety concerns. The stock has reacted marginally and is up by 0.4%

Article Source: Business Standard