Sector movers: Telecoms and grocers fail to offset losses for pharma, tobacco

Although there was a degree of confusion regarding the latter.

Analysts at Macquarie accounted for strength in BT Group, upgrading the shares to 'outperform' for the first time because in their opinion investors had turned too pessimistic on the prospects for the company future free cash flows.

In particular, the Australian broker hailed the potential of BT's FTTp and its EE unit.

Meanwhile, Tesco and Sainsbury gained as investors picked up their shares following positive sales data from Kantar the day before.

Gains for Sterling amid what some (but not all) analysts interpreted as hawkish comments from Bank of England governor Mark Carney likely also played a hand.

The day before HSBC sounded a positive note on Tesco, telling clients strategic momentum was continuing to build.

A stronger pound was also a favourable tailwind for General Retailers in so far as it helps to dampen imported cost pressures.

Linked to the rising pound and euro, or falling US dollar rather, Evraz was responsible for gains in Industrial Metals, as the retreat in the Greenback buoyed commodity prices.

GKN meanwhile was responsible for gains in Auto with the shares bouncing back from the harsh punishment dealt out by investors on Tuesday after a profit warning from German peer Schaeffler.

Heading the other way were 'defensive' pharma and tobacco stocks, again on the back of recent central bank signals of continued policy tightening ahead.

Top performing sectors so far today

Fixed Line Telecommunications 3,398.01 +1.94%

Food & Drug Retailers 2,889.01 +1.14%

Industrial Metals & Mining 2,361.82 +1.03%

General Retailers 2,464.55 +0.32%

Automobiles & Parts 7,764.72 +0.27%

Bottom performing sectors so far today

Pharmaceuticals & Biotechnology 14,397.25 -2.05%

Software & Computer Services 2,095.60 -1.78%

Tobacco 58,733.33 -1.38%

Real Estate Investment Trusts 2,930.17 -1.26%

Equity Investment Instruments 9,315.87 -1.14%