Sensex sees selling pressure on FY13 GDP nos, Asian cues

Moneycontrol Bureau

Key equity benchmarks continued to trade flat, even as the Central Statistical Organisation (CSO) pulled down India’s GDP forecast for the current year to 5 percent versus market estimates of 5.5 percent. 

At 12.39 hrs IST, the Sensex is down 59.41 points or 0.30% at 19580.31, and the Nifty down 21.70 points or 0.36% at 5937.50.

Asian shares and the euro paused from recent gains on Thursday, as investors awaited the European Central Bank's policy meeting later in the day and President Mario Draghi's view on euro zone growth prospects, optimistic that the worst may be over.

"Risk assets traded heavily as market participants exercise caution ahead of the ECB, particularly with Europe's political crisis hampering sentiment," said Stan Shamu, market strategist at IG Markets. "There has been growing talk of currency wars lately and some are now saying the eurozone will soon consider a fixed rate for the single currency."

European markets are seen in tight ranges, with financial spreadbetters predicting London's FTSE 100, Paris's CAC-40 and Frankfurt's DAX would open flat to up 0.1 percent. A 0.1 percent drop in U.S. stock futures suggested a soft Wall Street start.

Back home Pharma major Cipla is down 2.22 percent after dismal earnings led to a string of downgrades. Clsa has downgraded the stock to an “underperform” with target of Rs 415. The management has guided for growth rate to slow down as lexapro supplies dry up.

PSU major NTPC is down 2.76 percent. The company has launched its OFS today.  

Top losers on Sensex: Sterlite Industries (3.29 percent), Bharti Airtel (2.01 percent) and Jindal Steel (1.52 percent)

IT company Tech Mahindra is up 2 percent after the company reported a much better-than-expected set of Q3 numbers. Dollar revenue grew by 10% to USD 329 million, aided by acquisitions like Hutchison and Comviva. Margins expanded to 21% against an expectation of a decline.

IT company Tech Mahindra is up 2 percent after the company reported a much better-than-expected set of Q3 numbers. Dollar revenue grew by 10% to USD 329 million, aided by acquisitions like Hutchison and Comviva. Margins expanded to 21% against an expectation of a decline.

Top Sensex gainers: HDFC (1.19 percent), Tata Motors (0.65 percent), Infosys (0.56 percent), HUL (0.55 percent) and TCS (0.49 percent)

Cement is in focus today with pack leaders ACC and Ambuja both lower ahead of earnings announcements. The street is expecting subdued performance from both companies. ACC sales may see a muted 7 percent growth year-on-year, margins may dip to 16 percent. For Ambuja Cements polls suggest sales may grow 14 percent sequentially to Rs 2470 crore and margins may dip to 21 percent from 24 percent.