Markets were trading with marginal losses as losses in HDFC Group shares along with IT major TCS capped upside gains.
At 10:30AM, the 30-share Sensex was down 27 points at 28,817 and the 50-share Nifty was down 11 points at 8,746.
“The markets are likely to trade sideways to negative. Selective buying can be expected by late afternoon. For the Sensex, resistance is at 28,960 above 29,060 and 29,128. Support is seen at 28,775 below 28,719 and 28.693. For the Nifty, resistance is at 8786 above 8796, 8832 and 8840. Support is at 8740 below 8728 and 8702,” Geojit BNP Paribas Financial Services said in a technical note.
Meanwhile, foreign portfolio investors (FPIs) bought shares worth a net Rs 838.30 crore yesterday, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 35.31 crore yesterday, as per provisional data.
Most Asian markets retreated from their early highs as investors turned cautious and booked profits. Despite the weakeing yen, shares in Japan were trading 0.8% lower. China shares were trading with marginal losses after data showed that consumer prices in February rose 1.4% compared to last year and higher than 0.8% rise in January. The Shanghai Composite was down 0.1% while Hang Seng was down 0.5%. However, Straits Times was trading marginally higher.
Among the Sensex gainers, ICICI Bank and Infosys recovered from their early lows and were trading 0.4-1% higher.
Auto stocks such as Tata Motors, Bajaj Auto and M&M were up 0.8-1.6% each.
Capital goods shares rebounded on renewed buying interest at lower levels after losses in the previous sessions. L&T and BHEL were up 0.5-1.3% each.
Other gainers include, Cipla, Bharti Airtel and Coal India among others.
Mortgage lender HDFC and HDFC Bank continued to trade 0.7-2.5% lower.
Oil shares were also trading lower with Reliance Industries and ONGC down 0.7-1.4% each.
TCS extended losses and was down 1.4% after a muted outlook for the fourth quarter by the IT major.
Further, the initial Public offer (IPO) of Adlabs Entertainment in the price range of Rs 221-230 per share opened for subscription today and will close on March 12, 2015. Meanwhile, the company said in release that seven anchor investors have subscribed to 2.72 million shares at Rs 221 per share.
Among other shares, Shares of Natco Pharma were trading higher by 4% at Rs 1,609, extending its previous day’s 2.5% gain on BSE, after the company announced that it has launched the first generic version of sofosbuvir in Nepal.
Shares of Monnet Ispat and Energy (MIEL) has rallied 10% to Rs 72.35 on BSE on back of heavy volumes on media reports that the company is looking to sell some stake in its power generation subsidiary to fuel expansion plans and future growth.
In the broader market, the BSE Mid-cap and Small-cap indices were up 0.6-0.7% each.
Market breadth was strong with 1,073 gainers and 539 losers on the BSE.