Wednesday, the Indian market is trading lower on profit taking amid weak cues from the U.S. and the Asian markets. The market has rallied nearly 15% over the past 7 sessions on hopes that the worst of the global economic recession may be over.
After opening lower at 10,805, the BSE Sensex has recouped most of its losses in early trading. The index is now trading at 10,913, down 55 points or 0.50% over the previous close and the S&P CNX is trading at 3,358, down 0.72%.
While the IT sector is the worst hit, auto, realty and capital good stocks are witnessing sharp gains. Second-line stocks are outperforming the benchmarks. The broad-based BSE 500 index is up a modest 0.35% and the small-cap and the mid-cap indexes are rising more than 2% each. On the BSE, the market breadth is extremely positive, with 1374 advancers compared to 468 stocks that are declining.
Among the major losers, Sterlite Industries is losing nearly 5%, HDFC Bank is declining 1.42%, NTPC is down 1.20%, HDFC is moving down 1.08% and Reliance Industries is down 0.99%.
However, Tata Motors is jumping 5.47%, ACC is rising 2.53%, Ranbaxy Laboratories is moving up 2.39%, State Bank of India is gaining 2.20%, Grasim Industries is adding 2.03% and Maruti Suzuki is up around 2%.
BHEL, Sun Pharma, Jaiprakash Associates, Mahindra & Mahindra, DLF, Larsen & Toubro and Hindustan Unilever are the other prominent gainers.
As per Indian GAAP, Infosys reported a consolidated net profit of Rs.1613 crore and revenue of Rs.5, 635 crore in the March quarter and given below-than-expected guidance for FY2010. Infosys is trading at Rs.1, 343, down 4.69% over the previous close. Among the major losers in the IT space, Mphasis, TCS and Wipro are losing around 3% each.
opened lower on Wednesday with the technology sector under severe pressure after industry leader Infosys Technologies announced below-than-expected earnings guidance for FY2010.
Reliance Communications is up 0.18% after it has repurchased zero coupon foreign currency convertible bonds (FCCBs) worth Rs.25.26 crore at a discount. Bank of Baroda is rising 1.58% on cutting its deposit rates by half a percent across all tenures.
Ucal Fuel Systems is jumping 5.20% after its board approved the amalgamation of Ucal Machine Tools, a wholly owned subsidiary of the company with itself. HEG is down 0.32% after the company proposed to buy back its foreign currency convertible bonds.
Electrotherm India is gaining nearly 4% after it has deferred a plan to de-merge its engineering business into a wholly owned subsidiary. Strides Arcolab is moving down 0.43% after its board approved a resolution to issue up to 62 lakh warrants to the promoters and their associates on a preferential basis.
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