The weak closing by US indices yesterday is having a negative impact on most stock markets across Asia. The decline in crude prices is not helping the sentiment as most markets are struggling to hold on.
Even then, the Sensex opened the day marginally higher before declining. The index lost more than 100 points in early trades and went well below the 10000 mark before recovering. The index is trading lower by 76 points at 10006 at 11.10 AM.
The Nifty opened at 3018 and saw a low of 2985. The index is trading at 3001, lower by 19 points.
Cipla soared after a relatively modest opening. No major corporate development concerning the company has been reported so far. The stock is trading with gains of nearly 7.5 per cent.
The rally in Cipla is helping Ranbaxy as well, which is trading with gains of nearly 2 per cent. There are some unconfirmed reports that Ranbaxy has now emerged as the front runner to acquire Betapharm of Germany.
Reliance Energy, ABB, Tata Chemicals, Tata Tea and HPCL are the other major gainers in early trades.
Banking stocks are under pressure today after yesterday's rally. HDFC has lost nearly 2.5 per cent while HDFC Bank has declined more than 2 per cent. ICICI Bank is trading nearly 2 per cent lower.
Steel stocks have also come down after showing some promise for the last 2 sessions. Both SAIL and Tata Steel have given up more than 2 per cent each.
L&T, Tata Power, Hindalco, BPCL and ITC are among the other losers.
ITI has added nearly 7 per cent on reports that the company has received large orders from BSNL and MTNL.
Williamson Magor, Blue Star Info and Philips Carbon Black are some of the other major gainers among mid-caps.
*Disclaimer:The author may have positions in some of the stocks specifically mentioned above at the time of writing this article. This analysis / report is only for the purpose of information and is not an investment advice. Readers are advised to consult a certified financial advisor before taking any investment decisions. While efforts have been made to ensure the accuracy of the information provided in the content the author or publisher shall not be held responsible for any loss caused to any person whatsoever