Markets Trading Flat, Wipro Up 1.44%

The Indian markets saw a positive opening today, in line with our expectations. However, further in the morning, trades have turned flat. Although there is inherent strength in the markets, the broader indices are being weighed down by individual stocks. There has been significant weakness in Oil & Gas, FMCG and Metals, which has been causing the broader indices to not see a major upside. The Sensex is currently trading higher by 18.64 points or 0.10% at 19442.74 and Nifty is trading higher by 2.85 points or 0.05% at 5910.25.

The market breadth is positive, with 1353 (57.33%) advances and 897 (38.01%) declines. The BSE midcap and smallcap indices are trading higher by 0.37% and 0.53% respectively. The BSE Oil & Gas, FMCG and Metal indices are trading lower by 0.07%, 0.21% and 0.64% respectively.

Although the multi-brand retail FDI bill has been passed, the others in line are the Banking Laws (Amendment) Bill, the Forward Contracts Regulation Act (Amendment) Bill and the Pension Fund Regulatory and Development Authority Bill. Developments on the passage of these are likely to decide the sentiment surrounding the markets.

OMCs are trading lower due to a pressure on their margins resulting out of higher international crude prices and an overall weakness in the rupee. Though the currency has gained in the last trading session, the strength in the dollar resulting out of a weak euro is expected to keep these gains pressured. The stock prices of HPCL and BPCL are lower by 0.16% and 0.35% respectively.

Jewellery stocks are trading higher today due to a weakness in gold prices and a rise in demand on account of the wedding season. Tara Jewels and Tribhovandas Bhimji Zaveri are trading higher by 2.19% and 2.04% respectively.

Wipro has been in the news over its USD 200 million deal win in the telecom space, as also the company acquiring Singapore-based L.D.Waxsons Group. This has resulted in the stock price shooting up by 1.44%. However, due to a negative outlook surrounding the IT sector due to weak guidance by global giants like Syntel and Tibco, the IT index is trading flat overall. There are significant losses seen in the stock prices of Hexaware Tech, MphasiS and TCS, currently trading lower by 1.71%, 1.83% and 1.18% respectively.