Market Live: Nifty hovers around 9500 ahead of FO expiry; Asian Paints down 2%

11:00 am Listing: Healthcare company Eris Lifesciences is set to make a debut on exchanges on Thursday, June 29. The issue price is fixed at higher end of price band of Rs 600-603 per share.

The initial public offer of the company was opened for three-day bidding during June 16-20 and was oversubscribed 3.29 times due to weak sentiment and poor response from high networth individuals.

The portion reserved for qualified institutional buyers was oversubscribed 4.68 times and retail investors 3.51 times but the portion set aside for non institutional investors was subscribed only 45 percent.

The Ahmedabad-based pharma company raised Rs 1,741 crore through the issue, including Rs 779 crore from 21 anchor investors. It was an offer for sale by existing shareholders.

10:47 am FII View: Neelkanth Mishra of Credit Suisse said after steadily outperforming global equities in USD terms over January-April 2017, Indian equities underperformed in May & June.

In 2017 so far, India still ranks 6th among 50 major markets, helped by rupee appreciating 5 percent against USD, he added.

He still prefers sectors with good EPS growth like metals, energy, industrials and utilities over pharma, cement, staples & telecom.

10.38 am Market Check: Equity benchmarks continued to be volatile in morning trade, with the Nifty hovering around 9500 level ahead of expiry of June derivative contracts on Thursday.

The 30-share BSE Sensex was down 30.08 points at 30,928.17 and the 50-share NSE Nifty fell 5.70 points to 9,505.70.

The broader markets recouped early losses, trading flat with a positive bias as the market breadth turned positive.

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.