Indices trade weak; IT shares lose sheen

The Sensex and the Nifty are trading in the negative territory as investors resort to profit-booking as stocks had risen to very high levels in the pre-budget.

At 9.50 AM, the Sensex is trading at 24,986 levels down by 38 points and Nifty is trading at 7,449 levels lower by 38 points.

Investors are likely to shift their focus to WPI and CPI numbers and progress of monsoon for further cues. Industrial production recorded 4.7% growth in May 2014 and is likely to benefit Capital goods and Metal shares.

On sectoral front, barring BSE IT, Healthcare and Consumer Durables indices, all other indices are trading in green. Consumer Durables index is the top loser whereas, Capital Goods index is the top gaining index.

India's second largest IT services provider Infosys which gained nearly 5% on Friday post the declaration of its Q1 results is trading in red on profit taking, down 3.4%. Wipro adds 0.7% to the decline

Metal pack is also witnessing heavy selling with Sesa Sterlite and Coal India down between 1.1-1.6%

The healthcare index is down 0.6%. SunPharma, Dr Reddy’s Lab and Cipla have declined between 0.8-1.7% Among other notable losers are Bharti Airtel, SBI, ICICI Bank and NTPC

On the flip side, Tata Power is up by 1.4% after the company has decided to pursue aggressive growth plans and has sought shareholders’ nod to raise up to Rs 7,000 crore through issue of non-convertible debentures (NCDs). Besides, the leading private power utility has proposed increasing its borrowing limit to Rs 27,000 crore.

Some fresh buying is visible in the oil and gas space with RIL, ONGC and GAIL up 0.5%

Index heavyweight ITC has gained 0.3% on renewed buying.

Among other distinguished gainers are L&T, Axis Bank, Hindalco and BHEL. The auto stocks are trading in the positive territory with M&M, Hero Motocorp, Baja Auto and Tata Motors up between 0.3-0.4% HDFC twins are also witnessing some buying up between 0.2-1.3%

Bombay Stock Exchange - BSE