Thursday, the Indian market is showing volatility after opening sharply higher this morning. While resumption of buying by foreign funds and firm global cues improved investor sentiment, profit taking ahead of the release of February industrial production data is weighing on the market. Traders also await a report on inflation.
The BSE Sensex opened higher at 10,876 and rose to a high of 10,932 before slipping into the red. After falling to the day's low of 10,656, the index has cut most of its losses and is now trading flat at 10,737. On the other hand, the S&P CNX Nifty is trading at 3,331, down 0.37% over the previous close.
On the BSE, the market breadth is extremely positive, with 1160 advancers compared to 654 stocks that are declining. The small-cap and the mid-cap indexes are rising nearly 0.7% each and the broad-based BSE 500 index is up 0.21%.
Among the major losers, ONGC is losing 2.08%, Hindustan Unilever is declining 1.97%, Ranbaxy Laboratories is moving down 1.84% and ITC is down 1.58%.
HDFC, Reliance Communication, Infosys, Jaiprakash Associates, ACC, Mahindra & Mahindra, ICICI Bank and Reliance Industries are the other major decliners.
However, Tata Motors, Larsen & Toubro, Sterlite Industries, Tata Power, DLF and Wipro are trading firm.
Defensive FMCG and healthcare stocks and IT stocks are coming under selling pressure, but realty, metal and capital good stocks are showing handsome gains.
Wockhardt is rising nearly 4% on reports that it will hive off its biotechnology division into a separate company and rope in a global drug firm as a strategic investor. Shoppers Stop is down 0.28% even as it opened a MAC store at Inorbit Mall, Malad (West).
Tata Motors is gaining 3.24% on reports that it is in advanced talks with various banks and financial institutions to raise Rs.2000-3000 crore through non-convertible debentures for repaying part of a $3 billion bridge loan that it took to buy Ford Motor's marquee brands Jaguar and Land Rover.
Unitech is jumping 4.45% on reports that it may sell land blocks in some of its integrated township projects to healthcare, hospitality and education firms to raise up to Rs.1, 000 crore to pay off loans and fund its business. Larsen and Toubro is up 2.41% on bagging three orders worth Rs.605 crore from the water and steel sectors.
ABB is up 0.21% after it has set up a new Greenfield automation products facility near Bangalore to manufacture circuit breakers, switch fuse units and high power rectifiers. Sobha Developers is adding 3.40% amid reports that it could sell some of its assets worth Rs.200-300 crore to Shriram Properties.
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