Sensex, Nifty still under selling pressure; HDFC twins, ITC gain

Moneycontrol Bureau10:55 am Boardroom: Tube Investments reported strong volume growth in bicycles segment on back of government orders, especially from West Bengal government, says the company’s Managing Director, L Ramkumar.

The company’s revenue improved 14 percent to Rs 1,710 crore and profit after tax (PAT) rose to Rs 725 crore against Rs 111.5 crore quarter-on-quarter.

Profits were boosted by exceptional gain of Rs 725 crore on account of profit on sale of its Choldmandalam general insurance joint venture to Mitsui Sumitomo.

In FY17, Ramkumar expects a 15-20 percent growth in general insurance business and 8-10 percent volumes growth in cycles and engineering business.

10:30 am Macro: Growth in India's services industry slowed in April in line with a more modest rise in new business, a private survey showed on Wednesday.

The Nikkei/Markit Services Purchasing Managers' Index eased to 53.7 in April from 54.3, but chalked up its 10 straight month above the 50-level that separates growth from contraction.

"A softer expansion in activity, combined with unchanged employment and a dip in business expectations among service providers suggest that companies are not fully convinced about the recovery," said Pollyanna De Lima, economist at Markit.

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Selling pressure continues on Dalal Street as the Sensex is down 93.83 points or 0.4 percent at 25135.87. The Nifty is down 27.70 points or 0.4 percent at 7719.30. About 616 shares have advanced, 1062 shares declined, and 84 shares are unchanged.

HDFC twins, NTPC and Hero MotoCorp are top gainers while Adani Ports, Hindalco, Tata Motors, Tata Steel and ICICI Bank are losers in the Sensex.

Oil prices stabilised after falling for two straight days on concerns that slowing demand and rising Middle East production would extend a global supply overhang.

The slight price increases followed a more than 6 percent fall since the end of April that was triggered by rising output from the Middle East and renewed signs of economic slowdown in Asia.