Sensex extends losses even as global markets rise

In the broader market, the BSE Midcap fell 0.2%, while BSE Smallcap was little changed
The benchmark indices on Tuesday opened flat with negative bias even as Asian markets rose to 19-month highs as prospects of economic stimulus in the United States lifted the Wall Street to fresh record highs overnight.

At 09:48 am, the S&P BSE Sensex was trading at 28,285, down 66 points, while the broader Nifty50 was ruling at 8,779, down 26 points.

In the broader market, the BSE Midcap fell 0.5%, while BSE Smallcap slipped 0.3%.

"Technically, Nifty is well placed above the 8,770 levels, which indicates strength and has a potential to test 8,840-8,870 levels in coming trading sessions. For Intraday support placed at 8770-8740 levels, as long as it sustain above the same, the bull rally is likely to continue its up trend," said brokerage Nirmal Bang in a technical note.

Meanwhile, foreign institutional investors bought shares worth Rs 306 crores on Monday, while domestic institutional investors sold shares worth Rs 171 crores, provisional data avilable with BSE showed.

Sectors and stocks

BSE Auto (down 1%) was the top sectoral loser, led by losses in Hero MotoCorp (down 2%), Bajaj Auto (down 1.5%) and Tata Motors (down 1.5%).

Among individual stocks, HPCL shed nearly 4% to Rs 557 after the state run oil marketing company reported a 52.73% increase in its net profit to Rs 1,590 crore in the December quarter as compared to Rs 1,041 crore in the corresponding period last year.

Among gainers, GVK Power & Infrastructure rose over 16% to hit its 52-week high of Rs 7.70 on news reports that the company has been finalised by Maharashtra's CIDCO to construct the upcoming Rs 16,000 crore Navi Mumbai International Airport, a greenfield project situated on the mainland.

MMTC gained over 7% to Rs 67 after the state-run trading firm  reported a net profit of Rs 74 crore in the December quarter, much higher than the Rs 19.89 crore a year ago, on account of higher income.

Earnings today

Over 950 firms such as Sun Pharma, DLF, Jindal Steel & Power, Adani Ports, Adani Enterprises, IVRCL and SpiceJet are scheduled to report their quarterly earnings today.

CPI falls to lowest in 2 years

The Consumer Price Index-(CPI) based inflation for the month of January 2017 plunged to 3.17%, the lowest in at least two years, primarily due to a marginal increase in food prices. The retail inflation was 3.41% in December and 5.69% in January last year.

Global markets

Asian shares inched to 19-month highs. MSCI's broadest index of Asia-Pacific shares outside Japan edged up 0.1%, trying for its fifth straight session of gains.

Japan's Nikkei eased 0.1% as it struggled with stiff chart resistance that has held since mid-December.

Stocks in Shanghai were barely changed, but Australia managed a 0.4% gain.

Wall Street indexes had hit historic peaks on Monday, with the benchmark S&P 500's market value topping $20 trillion as investors bet tax cuts promised by President Donald Trump would boost the economy.

VISIT - Gold Crude Research