Tuesday, the Indian market is trading modestly lower on profit taking after posting its biggest one-day gain in six months on Monday. While underlying sentiment is upbeat due to sustained buying by foreign funds; investors, especially domestic financial institutions have been expressing caution amid concerns of a possible fractured mandate in general elections.
After opening flat at 12,160, the BSE Sensex slipped into the red within few minutes and has been showing a sideways movement. The index is now trading at 12,081, down 52 points or 0.43% over the previous close. Meanwhile, the S&P CNX Nifty is trading at 3,642, down 0.33%.
On the BSE, second-line stocks are outperforming the large-caps. The broad-based BSE 500 index is up 0.32%, the small-cap index is rising 1.33% and the mid-cap index is adding around 1.5%. The market breadth is positive, with 1027 advancers compared to 648 stocks that are declining.
Sector-wise, IT and defensive FMCG stocks are coming under significant selling pressure, but realty, capital goods, metal and banking stocks are witnessing broad based gains.
Among the major decliners, HDFC is losing 3.45%, Mahindra & Mahindra is declining 2.96%, Infosys is down 2.53% and ITC is moving down 2.43%. TCS, Wipro, Sterlite, HDFC Bank, ONGC, Bharti Airtel and Sun Pharma are the other prominent losers.
However, DLF, Tata Steel, Tata Motors, Ranbaxy, ICICI bank, Larsen & Toubro, Jaiprakash Associates, Maruti Suzuki and Reliance Communication are showing notable gains.
Sobha Developers is surging up 7.71% on saying that it would raise additional capital to the tune of Rs.750 crore and raise investment limit for foreign institutional investors to 100% of its equity.
ACC is up 1.15%, but Ambuja Cement is losing 1.77% after they have reported marginal improvement in cement shipments in April compared to the same month last year. Tata Motors is adding more than 3% despite reporting a 2% decline in its vehicle sales in April.
Oil explorer Reliance Industries is down 1.45% and ONGC is losing 2.06%, but Cairn India is up nearly 1%. According to reports, Reliance will sign a five-year contract with Ratnagiri Gas & Power this week for supply of 2.5 million metric standard cubic meters per day (mmscmd) natural gas.
DLF is gaining 4.62% on reports about selling off its hotel at Saket, New Delhi, for around Rs.75 crore. Jubilant Organosys is jumping nearly 10% after it has signed a research collaboration agreement with AstraZeneca.
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