Amid alternate bouts of buying and selling in blue chip stocks, the market is trading weak this morning. Despite positive global cues and a slightly positive start, the market faltered this morning with investors treading cautiously after the previous session's sharp upmove. With the reporting season just a few sessions away, they appear quite reluctant to build up big positions.
In the currency market, the rupee strengthened by 6 paise to Rs 53.15 per dollar on the Interbank Foreign Exchange in early trade today. On Tuesday, the rupee had gained 9 paise to close at Rs 53.21/22 against the dollar, amid a strong rally in domestic equities and fresh dollar selling by exporters.
Betting on hopes of a rate cut, investors went on a buying spree in banking, automobile and realty stocks on Tuesday, but most of these stocks have drifted lower now after a positive start. In fact, automobile stocks are mostly trading with notable losses at present.
PSU stocks are trading firm. Select capital goods, power and metal stocks are also holding on in positive territory with smart gains. Pharmaceuticals stocks are trading mixed. IT and oil stocks are mostly trading flat.
Bajaj Auto is down as much as 4.8% at Rs 1244. Hero Motocorp and Mahindra & Mahindra are down 3.5% and 3% at Rs 1774 and Rs 646 respectively. Maruti Suzuki is down 0.3% at Rs 949. However, Tata Motors is up in positive territory with a gain of 1.5%.
Hindustan Unilever and Bharti Airtel are down by around 2.3% at Rs 398 and Rs 350 respectively. Tata Power, State Bank of India, Coal India, Jindal Steel, HDFC Bank, Tata Consultancy Services, Tata Steel and HDFC are also trading notably lower.
BHEL is up with a strong gain of 2.3%. ICICI Bank is up by a little over 2%. Hindalco, Sterlite Industries, ONGC and Cipla are up 1% - 1.5%. Larsen & Toubro and Wipro are up nearly a percent, while Jaiprakash Associates is up with a gain of about half a percent.
PSU stocks MMTC (14.5%), Hindustan Copper (13.5%), Rashtriya Chemicals & Fertilizers (11.5%), Engineers India (8.5%), NMDC (6.5%) and Neyveli Lignite Corporation (5.6%) are up with strong gains thanks to sustained buying support. MOIL, REC, Hindustan Zinc and Gujarat Minerals are among the other major gainers in the PSU space.
KEC International Ltd shares are up 10% at Rs 40.10 following an announcement from the company that it has secured new orders worth Rs 12.53 billion.