10:00 am: Indian equities were trading with a mildly
negative bias early Thursday with breadth favouring more declines than advances
(942 to 859). Sectors that lent strength to the index were so-called defensives
IT and consumers, while high-beta metals, banks, capital goods and oil &
gas witnessed some selling.
Among key movers, metal
stocks moved lower after displaying strength early, as investors digested the
impact of the coal auction draft rules that are expected to provide some
clarity to supply of the fuel. Jindal Steel was down 1.2 percent while Hindalco
gave up early gains.
Sugar stocks were significantly lower, following a recent rally,
after the expected government move to provide export sops still has not come
through. Balrampur Chini, Bajaj Hindusthan and Shree Renuka were down between
2.3 percent and 4.3 percent.
IT majors TCS, Infosys and Wipro were up between 0.1 percent and
0.5 percent, after the rupee sank below 62 to the dollar, a development that
may benefit the services exporters.
While in individual stocks, ING Vysya Bank surged 6.2 percent,
amid reports Kotak Mahindra Bank (up 6 percent) would acquire it, even as the
latter issued a clarification to the exchanges saying no such decision had been
taken.
A Nomura report said the acquisition would be beneficial for Kotak
as the two banks have minimum overlap in terms of branches as well as business
lines, and that ING’s SME-focused
business would complement Kotak’s largely retail-focused franchise.
Dr Reddy’s was up 0.3 percent, amid hopes the FDA’s decision to
revoke Ranbaxy’s right to sell Nexium generic in the US, the second-largest
selling drug in the world used to treat heartburn, would benefit the company.
Ranbaxy was down 1.5 percent while its parent Sun Pharma was off 0.5 percent.
Stocks newly added to the futures and options segment by the
exchanges witnessed buying interest. Amtek Auto, Bosch, Engineers India,
Strides Arcolabs and Wockhardt were up between 0.8 percent and 3 percent.
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