Mid Market- Sensex pares gains as IT stocks drag Analysis for Jul 03, 2012

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The key domestic benchmarks pared a huge chunk of its earlier gains in noon trade as selling pressure escalated in IT stocks amid concerns over the health of the nation's export-oriented industry. Sentiment weakened after Macquarie Equities Research downgraded IT services sector to "underweight" from "overweight" citing demand concerns. The agency also downgraded India ' 's top three software exporters Tata Consultancy Services, Infosys and Wipro to "underperform".

The Sensex found support from firm Asian markets which traded higher today on hopes that central banks from the US to Europe may ease monetary policy to spur economic growth. US manufacturing activity shrank for the first time in almost three years in June 2012, adding the case for further policy easing by the Fed to spark the US economic recovery.

At 12:13PM, the BSE SENSEX was at 17,443.29, up by 44.31 points or by 0.25 per cent and the NSE Nifty was at 5,292.5, up by 13.9 points or by 0.26 per cent.

The BSE Sensex touched intraday high of 17,526.82 and intraday low of 17,431.88. The NSE Nifty touched intraday high of 5,317 and intraday low of 5,286.9.

Meanwhile, the BSE MIDCAP was at 6,234.25, up by 25.01 points or by 0.40 per cent, while the BSE SMLCAP was at 6,647.09, up by 31.8 points or by 0.48 per cent.

On the Sectoral front, Consumer Durables and Banking were up 1.89 per cent and 1.01 per cent, respectively but IT shed 0.77 per cent.

The Market breadth, indicating the overall health of the market, was strong. On BSE out of total shares traded 3459, shares advanced were 1487 while 991 shares declined and 981 were unchanged.

The top gainers of the BSE Sensex pack were Bharti Airtel Ltd. (Rs. 319.80,+3.21%), GAIL (India) Ltd. (Rs. 362.40,+2.03%), Hindalco Industries Ltd. (Rs. 122.95,+1.53%), Maruti Suzuki India Ltd. (Rs. 1196.80,+1.37%), ICICI Bank Ltd. (Rs. 906.05,+1.35%), among others.

Story first published: Tuesday, July 3, 2012, 13:20 [IST]
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