Nifty trades with modest losses on global cues; IT slips

The benchmark Nifty has started the session on a flat note with a negative bias. Weak global cues and fall in technology, telecom, financial & cement companies' shares weighed on markets.

At 9:01 hours IST, the Nifty was trading at 5465, down 12 points and the Sensex was at 18199, down 26 points. However, the CNX Midcap rose 18 points to 8847; about 476 shares advanced while 273 shares declined on NSE.

Among the frontliners, Infosys (down 2.7% as yesterday CNBC-TV18 learns that BT is likely to cut FY11 global IT budgets by 50%), Ambuja Cements, PNB, Sun Pharma, M&M, Bharti, ICICI Bank, TCS, Idea, HCL Tech, Wipro and SBI were witnessing selling pressure.

However, GAIL (up 3%), Reliance Power, JSPL, HDFC, IDFC, Reliance Communications and Suzlon Energy were gainers in early trade.

Midcap & Smallcap space:

Kamat Hotels shot up 10%; Clearwater will acquire 33% stake in company, concerted USD 5.6 million FCCB at Rs 135/share and will convert further USD 12.4 million in a year. This deal will trigger open offer.

Jindal Poly was up 4.7% and Essar Shipping up 3%.

Jet Airways gained 3% as it has sought RBI approval to raise USD 750 million via ECBs. The company will finalise JV with Godrej Properties in 1-2 months and will dilute 20% equity

Godrej Properties gained 1.3%, as it has plans Rs 1000 crore QIP issue in FY11.

Eicher Motors was up 4.5%.

However, J&K Bank lost 6%
Prakash Steelage declined 2.63% and Punj Lloyd was down 0.9%.