IT Heavweights Under Pressure : Sensex Off Day’s High

10th October, 2016: Real estate stocks were seeing selling pressure in early morning trade. The Bombay stock Exchange – BSE Realty index was seen down 0.7%. Prestige Estates, DLF, NBCC, Oberoi Realty, Godrej Properties and Phenix Mills belong to the losers’ group from this space.

In the early morning trade on the stock exchanges, stock markets came off the intraday high levels due to selling pressure in heavyweight IT stocks. Sensex, which soared over 150 points was up 55 points at ‘28,116’ and Nifty was at 8,720, up ‘22’ points. At, 9:26 a.m, Sensex surged over 150 points and Nifty edged closer to its crucial psychological level of ‘8,750’ due to buying in auto, metal and FMCG shares. The Sensex further surged as much as 151 points to ‘28,216.64’ while Nifty advanced 48 points to 8,745.80.

In the opening deals today, buying interest was witnessed in metal, auto and FMCG shares. The metal stocks were seen to be among the top gainers on the bourses. The BSE Metals index advanced over 1%. Meanwhile, FMCG, auto and power indices were also trading higher over 0.5% each. At the same time, select IT stocks were seeing selling pressure.

From the Nifty lot of shares, 42 were moving forward while 9 were plummeting. Tata Motors was seen to be among the top Nifty gainers, up nearly 2% after the company reported more-than-expected Jaguar Land Rover Sales for the September month.

Hindalco, Cipla, Tata Steel, ITC, Asian Paints, Tata Power, Ambuja Cements and Yes Bank were also among the gainers. On the other hand, BPCL, Zee Entertainment, Bharti Airtel, HCL Technologies, TCS, Infosys and Tech Mahindra were among the laggards.

The broader markets were seen to be in-line with the benchmark indices. The Bombay Stock Exchange – BSE mid-cap and small-cap indices soared 0.45% each.

At the time of Market Opening and Just Before:

Rupee opened higher at ‘66.58’ per dollar against Friday’s close of ‘66.68’. At, 8:30 a.m., Sensex and Nifty were expected to open higher in trades today tracking gains on the Nifty futures traded on the Singapore Exchange amid subdued Asian cues. The Nifty futures had traded on Singapore Exchange – SGX Nifty traded 0.36% or 31 points at 8,745.

Meanwhile, other Asian markets were seen to be trading on a subdued note as the traders signalled a slightly higher chance of Fed raising its key interest rate by end of this year after Friday’s jobs report. On the other hand, Japan’s Nikkei was down 0.23%, Hong Kong’s Hang Seng dipped 0.42% while South Korea’s KOSPI slumped 0.02%.

On Friday, US stocks slumped after ‘weaker-than-expected’ September jobs report had little impact on the prospects of the interest rate hike by year end. Dow Jones closed 0.15% lower, Nasdaq slipped 0.27% and S&P 500 declined 0.33%.
On the same day, foreign institutional investors bought cash shares worth Rs.56 cr and domestic institutional investors bought shares worth Rs.727 cr.

Tata Steel and ONGC in Focus Today:

Meanwhile, ONGC shall be in focus today on the back of reports that it has signed a preliminary agreement to take an operating stake in GSPC’s KG basin gas block.Tata Steel shall also be on the radar investors as it is believed to be edging closer to striking a novel deal over the 15-billion-pound pension pot, according to a media report on Sunday that stands in the way of an agreement over of its UK steelworks.

Scenario of the Market at 10:26 am:

The broader markets traded strongly higher. The BSE mid-cap and small-cap indices were seen to be up over 0.4%. NALCO stands as the top gainer from this space, up 6% to Rs.51.85. Tata Communications, Tata Chemicals, Rajesh Export, Bharat Forge, Blue Dart, SAIL, Tata Global Beverages, L&T Housing Finance and Ajanta Pharma were also among the gainers.