After opening on a firm note and advancing further subsequently, the Indian stock market pared its gains and slipped into negative territory Wednesday morning with investors turning slightly cautious at higher levels on data showing a slowdown in growth of eight core sectors in March.
Also, investors are looking ahead to the interest rate decision from the US Federal Reserve and its outlook on rates going forward.
The BSE benchmark Sensex, which spurted to 35,357.15 in early trades, gaining nearly 200 points in the process, is currently at 35,152.40, down 7.96 points or 0.02 percent from previous close.
The Nifty50 of the National Stock Exchange is down 4.40 points or 0.04 percent at 10,734,95, after touching a high of 10,784.65 earlier.
With leading automobile manufacturers reporting notable jump in vehicles sales in the month of April, shares in auto sector rallied in early trades.
Bajaj Auto is up 2.7 percent, Tata Motors is gaining 2.3 percent and Maruti Suzuki is up 1.3 percent. Hero Motocorp and Mahindra & Mahindra are up with modest gains.
Maruti Suzuki and Mahindra & Mahindra have reported 14.4% and 22% jump in sales in April, while Mahindra & Mahindra has announced that its vehicles sales rose as much as 86% in April.
Kotak Bank is up nearly 3.5 percent. Larsen & Toubro is gaining about 1%. L&T has announced that it would sell its electrical and automation business to Schneider Electric for a cash consideration of Rs.140 billion. The divestment is part of L&T’s larger plan to streamline its operations by divesting from non-core assets.
Coal India, Hindustan Unilever, Infosys, Wipro, Tata Consultancy Services, IndusInd Bank, ICICI Bank and Bharti Airtel are down 0.7 to 1.4 percent. Tata Steel, State Bank of India and Yes Bank are also weak.
According to the data released by the Commerce & Industry Ministry on Tuesday, the growth of eight core sectors slowed to 3-month low of 4.1% in March due to weak performance in as many as six sectors including coal, crude oil and natural gas.
Refinery products, steel and electricity sectors too registered slower growth in March, the data showed.
Markets across the globe are awaiting the Federal Reserve’s monetary policy, due later in the day. It is widely expected that the Fed will hold rates unchanged, but the focus is on what the central bank is to state with regard to outlook for rates.
by RTTNews Staff Writer
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