Markets turn directionless; IT stocks weigh Analysis for Jul 09, 2015

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The key domestic benchmark indices turned directionless swinging between negative and positive zone during the noon trading session as investors remained wary ahead of the start of the Q1 FY 2015-16 corporate earnings season with IT bellwether TCS set to unveil its Q1 earnings later in the day.

At 13:15 hours, the 30-share barometer index of Bombay Stock Exchange, Sensex was trading at 27656.73 down by 30.99 points or by 0.11 per cent, while NSE Nifty was quoting 10.05 points lower at 8353.

According to analysts, the IT giant, TCS is expected to report a 7.5 per cent dip in sequential revenue for the quarter ended June 30, 2015 with dollar-denominated revenue likely to have risen by 4.2 per cent. The investors also remained cautious ahead of industrial output data scheduled to release tomorrow, which may show Indian factories probably boosted production at a slower pace in May, signaling a lingering manufacturing slowdown in Asia"s third biggest economy. Analysts have penciled down a 3.6 per cent, year on year expansion in the country"s industrial output in the month of May 2015, following a 4.1 per cent surge in April 2015.

In the see-saw trade, the BSE Sensex touched an intraday high of 27798.13 and an intraday low of 27625.81, while the NSE Nifty touched an intraday high of 8400.3 and an intraday low of 8343.55.

Major laggards on the D-street were Vedanta Ltd. (Rs. 142.10,-2.74%), Infosys Ltd. (Rs. 940.25,-1.77%), Tata Motors Ltd. (Rs. 398.15,-1.73%), Tata Consultancy Services Ltd. (Rs. 2550.05,-1.70%), Bajaj Auto Ltd. (Rs. 2540.00,-1.32%), among others.

Meanwhile, some buying was witnessed in Bharat Heavy Electricals Ltd. (Rs. 261.95,+2.64%), Bharti Airtel Ltd. (Rs. 438.55,+2.14%), Larsen & Toubro Ltd. (Rs. 1841.10,+2.04%), Hero MotoCorp Ltd. (Rs. 2603.00,+1.96%), Hindalco Industries Ltd. (Rs. 103.70,+1.92%), among others.

On the sectoral front, IT index was top loser and was trading at 10260.76 down by -137.32 points or by -1.32%. Cressanda Solutions Ltd. (Rs. 3.89,-4.89%), Sonata Software Ltd. (Rs. 131.20,-2.09%), PFL Infotech Ltd. (Rs. 55.00,-1.96%), Oracle Financial Services Software Ltd. (Rs. 3805.15,-1.85%), Infosys Ltd. (Rs. 940.25,-1.77%),.

On the global front, Asian peers were trading higher with markets in China rising for the first time in three days as officials took further measures to arrest an equity rout that has wiped out more USD 3 trillion of value.

Story first published: Thursday, July 9, 2015, 13:48 [IST]
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