Mumbai: Markets have opened higher in early trade after sharp recovery seen in Tuesdays trade and have reacted positively to global cues as US markets bounced back after Fed announced bailout package for AIG.
But benchmark indices did not hold that gain and immediately drifted lower and are trading with some choppiness.
Buying is seen in technology, realty, few capital goods and auto stocks. However, pharma, banking and FMCG stocks are under pressure.
At 9:56 am, the Sensex fell 45 points to 13473 and the Nifty lost 11 points at 4,064. However, BSE Midcap rose 0.6% and Small Cap jumped up by 0.8%.
TCS, Infosys, DLF, Siemens, Reliance Communication, Maruti, Cairn India, Tata Comm, Wipro, Zee Entertainment, ONGC, Satyam, Tata Motors and L&T have gained. However, Ranbaxy Labs, Sterlite, Reliance Industries and Bharti Airtel lost ground.
Ranbaxy Labs tumbled nearly 8%, as US FDA issued two warning letters to generic drug maker company and issued 'Import Alert' for drugs made at two plants in India. US FDA has banned imports of more than 30 generic drugs made by company.
ICICI Bank fell over 4%. Its UK arm's Lehman exposure is less than 1% of arm's assets and less than 0.1% of group's assets.
UK arm has provided $12 million against Lehman exposure and has provided additional $28 million if 50% Lehman debt recovered.
Asian markets are trading mixed after opening higher in early trade. Nikkei rose 1.55%, Kospi 3.05%, Taiwan Weighted 1.65% and Jakarta 2.33%.
However, Shanghai lost 1.62%, Hang Seng -1.31% and Straits Times -0.75%.
World’s largest insurance company, AIG will get USD 85 billion loan from Federal Reserve in exchange of 80% stake.
US markets rallied on home stretch as markets digested the news of the Fed holding rates with the point that the Fed had hedged its options for the future.
The Dow Jones gained 141.51 points, or 1.30%, to close at 11,059.02, while the S&P 500 rose 20.90 points, or 1.75%, to 1,213.60. The Nasdaq Composite Index surged 27.99 points, or 1.28%, at 2,207.90.
Market cues:
RBI announces measures to check rupee depreciation, liquidity
US markets rally despite Fed holding rates as AIG is saved from going bust
Asian markets rally on Wall Street cues, crude rises to $94/bbl
FIIs net sell $156 mn in equity on Sep 15: SEBI
MFs net buy Rs 122 crore in equity on Sep 15: SEBI
NSE F&O Open Int up by Rs 1,974 crore at Rs 84,331 crore
F&O cues:
Futures Open Int up by Rs 224 crore, Options Open Int up by Rs 1,50 crore
Nifty Futures shed 11 lakh shares in Open Int, at 16-pt premium
Nifty Open Int Put-Call ratio at 0.83 Vs 0.87
Nifty Puts add 6 lakh, Calls add 32 lakh shares in Open Int
Nifty 3900 Put add 4 lakh shares in Open Int
Nifty 4000 Put add 2.5 lakh shares in Open Int
Nifty 4200 Put shed 2.6 lakh shares in Open Int
Nifty 4100 Call add 9 lakh shares in Open Int
Nifty 4200 Call add 6.5 lakh shares in Open Int
Nifty 4300 Call add 6 lakh shares in Open Int
Stock Futures Open Int unchanged
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