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Markets open flat; Infosys down 3%

Markets started on a flat note with the benchmark indices marginally in the red in  opening deals shrugging off firm Asian cues.

At 09:38 hrs, the Sensex is down 7 points at 28,451 and the Nifty has slipped 4 points to trade at 8,535.

The ones leading the early losses are Infosys down 3% and Sesa Sterlite down 1%. However, ITC, Sun Pharma and Coal India are up 1% each.

Traders will watch the proceedings of the winter session of parliament for cues. Some progress on reform-centric legislative proposals is expected.

Key macro-economic data, wholesale and consumer price inflation data for November 2014 and industrial output data for October 2014 is scheduled to be released on Friday.

Meanwhile, foreign institutional investors were net sellers in Indian equities worth Rs 109.45 crore on Friday, as per provisional stock exchange data

Global Markets

Asian stocks eked out gains on Monday in wake of much stronger-than-expected U.S. employment numbers, although sobering data highlighted the sluggishness in the region’s key economies and tempered gains.

The dollar hovered at multi-year highs against the yen after Treasury yields spiked on the robust U.S. employment report.

Indicators released on Monday showed that China’s trade performance in November was much weaker than expected while Japan’s economy in the third quarter shrank more than initially reported.

Shanghai Composite, Straits Times and Hang Seng are trading between 0.3-1.5%.

Key Stocks:

On the sectoral front,  BSE IT index is down 2% followed by Teck, Consumer Durables indices and Bankex. However, BSE FMCG, Power and Auto indices are up  between 0.2-0.6%.

The technology stocks are trading lower in the morning trades. Wipro, TCS and Infosys are down between 1.5-2.5%.

Four of the founders of Infosys Ltd are seeking to raise about $ 1.1 billion by selling stakes in the Indian IT outsourcing company, IFR reported on Monday.The founders are offering 32.6 million shares in Infosys at a fixed price of Rs 1,988 ($ 32) each, a 4% discount to Friday’s close, the report said. 

Drug majors Cipla lost 2% and Dr Reddy’s Lab has shed 2.3% while Sun Pharma is up nearly 2%. 

SBI is down nearly 1%. SBI plans to raise $ 300 million by way of issuing bonds. The proceeds are planned to be used for general corporate purposes. ICICI Bank and Axis Bank Are trading with marginal losses.

Bajaj Auto is trading with marginal losses. The company is looking to raise prices of its two models – Platina and Discover – from next month in order to partially offset increase in input costs. Maruti Suzuki, TATA Motors and Hero Motocorp are up between 0.1-2%.

ITC extended gains up 1% after media reports suggested that the government was reconsidering a proposal to ban sale of loose cigarettes. However, HUL was down 0.5%.

Metal names like Hindalco, Tata Steel are down 1.5% and 0.3% respectively while Coal India is up 1.3%.

The power stocks are hogging limelight in the early trades. NTPC and Tata Power are up 0.5% each. 

The broader markets are outperforming the large counter parts, the BSE Mid and Smallcap indices are up 0.4% each. 

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