The S&P BSE Sensex pared gains after rallying as much as 130 points in morning trade on Monday, led by losses in HDFC, RIL, HDFC Bank, and Bajaj Auto.
The Nifty50 pared gains and turned choppy weighed down by losses in metal, auto, telecom, and capital goods stocks.
At 09:20 am: The 30-share index was trading 17 points higher or 0.06 per cent at 27,690. It touched a high of 27,803.21 and a low of 27,681.59 in morning trade.
The Nifty50 was trading at 8,573 down 10 points or 0.12 per cent. It touched a high of 8,615.40 and a low of 8,570.65 in the first 30 minutes of trade.
The S&P BSE Midcap Index was up 0.13 per cent and BSE S&P Smallcap Index was trading 0.31 per cent higher.
ICICI Bank (up 3 per cent), NTPC (up 1.7 per cent), Infosys (up 0.81 per cent), and SBI (up 0.7 per cent) were the major Sensex gainers.
Asian Paints (down 1.1 per cent), Adani Ports (0.96 per cent), HDFC Bank (down 0.81 per cent), HDFC (down 0.7 per cent) and Bharti Airtel (down 0.65 per cent) were the major Sensex losers.
The domestic equity indices are likely to trade on a flat to positive note on Monday, as investors react to Fed Chair Janet Yellen’s statement on the US economy ahead of the quarterly numbers from a dozen domestic companies scheduled for release later in the day.
US economy slipping, Yellen said: The US Fed Chair on Friday said the US economy’s potential was slipping and aggressive steps would be needed to rebuild it.
It is to be seen what the market makes out of Yellen’s comments. Going by Fedwatch tool, traders are now pricing in a 69.5 per cent chance of a Fed rate hike at the December policy review.
Yellen, citing a research by Federal Reserve staff, said US monetary policy spillovers to other economies are positive — that is, policies designed to provide stimulus to the US economy also boost activity abroad, as negative effects of dollar depreciation are offset by positive effects of higher US imports and easier foreign financial conditions.
15 BSE-listed companies to announce earnings today: UltraTech Cement, Zensar TechnologiesBSE 1.39 %, Dewan Housing FinanceBSE 1.06 %, Orient PaperBSE 2.48 % and Lakshmi Vilas BankBSE 3.79 % would be among 15 companies scheduled to report quarterly earnings during the day. The results are expected to generate stock-specific action.
Overall, 98 firms will post their quarterly earnings this week. IT firms WiproBSE -0.35 %, MindtreeBSE -1.83 %, KPIT Technologies, MastekBSE 1.81 % and Zensar Technologies, cement majors ACCBSE -0.70 %, microfinance company Equitas Holgings besides RBL Bank, Cairn IndiaBSE 0.07 % and Havells IndiaBSE -3.08 % are among the companies scheduled to announce their quarterly earnings this week.
“No significant changes are expected in the earnings for the quarter, except that the worst should be over for the banks and a commentary on better outlook. With good monsoon behind us, expectations of a better second half runs high and the commentaries from the corporates will be crucial,” said brokerage Prabhudas Lilladher in a note.
Cues from Singapore negative: At 7.45 am, Nifty50 futures on the Singapore Stock Exchange were trading 48.50 points lower at 8,562.50, indicating a gap-down opening for the domestic market.
“Brexit fears and the US Fed rate increase are global in nature. These factors are causing volatility in global markets and that is why you are seeing a little bit of a lull in funds coming into India. Does it mean over time India is not going to get funds? No. I think India is a very sweet story. But right now, we are in a moment of uncertainty,” said Alka Banerjee, CEO, Asia Index Private Ltd.
WPI inflation eased: WPI inflation dropped to 3.57 per cent, data released on Friday showed. The data raised hopes of another rate cut going ahead. “The trend is along expected lines and Ind-Ra believes it is likely to continue in the next month. Lower inflation cements market expectation of a rate cut,” India Ratings said in a note.