Market Live: Nifty opens below 9500, Sensex volatile; PSU banks under pressure

9:53 am Buzzing: Motherson Sumi Systems share price gained nearly a percent in early trade after the shareholders have approved the issuance of bonus shares to existing shareholders through postal ballot on Tuesday.

The company has fixed July 7 as record date for purpose of the bonus issue.

Hence, the register of members and share transfer books will remain closed on July 7.

The board of directors of the company, on May 19, has recommended the issue of bonus shares in the ratio of one bonus shares against the two existing shares.

9:35 am F&O: Nifty rolls were at 47.81 percent, higher than 3-month average of 42.5 percent towards the end of June series while the market wide rollover of 37.01 percent was lower than the 3-month average of 39.1 percent, ICICIdirect said.

It further said Nifty total futures open interest has increased considerably by more than 5 percent on Tuesday due to fresh additions in the July series. Nifty June series witnessed closure of 6.2 million shares while July series added almost 7.4 million shares, which have prompted sharp increase in Nifty rollover. The current open interest in Nifty is just 13.2 shares, which is relatively low with just two days to settlement. As expected, the roll spread has also come under pressure and it is currently at 14 points from 19 points seen on Tuesday.

According to the research house, F&O data is clearly suggesting fresh short build-up in the next series.

9:30 am Monsoon: Met Department told CNBC-TV18 that most parts of country have received well-distributed rainfall while there has been lower-than-estimated rainfall in region around Himalayas.

According to the department, 79 percent of the country has received normal-to-above-normal rainfall while rainfall deficiency is mostly concentrated towards north east.

Met Department is seeing a steady progress in rainfall in central India and expects average July rainfall at 96 percent.

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9:15 am Market Check: Equity benchmarks extended losses in early trade Wednesday, with the Nifty opening below 9500 on further correction in PSU banks, healthcare and FMCG stocks.

The 30-share BSE Sensex was down 19.27 points at 30,938.98 and the 50-share NSE Nifty fell 27.70 points to 9,483.70.

ITC, SBI, Bank of Baroda, L&T, Sun Pharma, Lupin and Dr Reddy’s Labs were under pressure while Infosys, ICICI Bank and HDFC continued to support the market.

Nifty Midcap lost 0.5 percent as about two shares declined for every share rising.

Vijaya Bank, OBC, Andhra Bank, Syndicate Bank, Escorts, Berger Paints, Bajaj Finance, DHFL and LIC Housing fell 1-2 percent whereas Jaiprakash Associates, Jaypee Infra, Adani Enterprises, Videocon Industries, Fortis Healthcare and Dish TV gained 1-15 percent.

The Indian rupee opened marginally lower at 64.55 per dollar against previous close of 64.53.

Pramit Brahmbhatt of Veracity feesl the rupee will take cues from weak domestic equity market and will trade sideways to negative. He expects the spot USD-INR pair to trade in a range of 64.40-64.80/dollar.
Asian indexes traded mostly lower after the softer lead from Wall Street, with the vote on a bill to replace Obamacare in the US delayed.