Markets remain weak; Sensex breaks 27,000
The benchmark indices are struggling in noon trades, led by losses in blue-chip stocks such as Tata Steel, ICICI Bank and RIL. Analysts attribute today’s fall to selling by foreign institutional investors (FIIs) amid weak global cues.
At 1.00pm, the Sensex broke its 27,000 level and was at 26,986, weaker by 517 points or 1.8%, and the Nifty slid below its psychologically-crucial 8200 mark to 8,155, lower by 169 points or 2%.
The broader markets were also facing the heat, with the BSE Midcap sliding by 1.5% at 10,293 and the smallcap index shedding 1.3% at 10,819.
The BSE Sensex had rallied 908 points in the past two trading sessions and this session’s weakness may be a case of profit-booking. However, it is also possible that today’s weakness could mark a resumption of the ongoing downtrend that had dragged the Nifty to sub-8,000 levels last Thursday.
The investors are cautious ahead of key macro-economic data like Consumer Price Index (CPI) and Index of Industrial Production (IIP) which will be unveiled today.
On the currency front, the rupee depreciated 30 paise to 64.15 against the dollar in early trade today on the Interbank Foreign Exchange as the American currency firmed up overseas.
According to K.Subramanyam, Co-Head Equity Advisory, Altamount Capital, the market bias is definitely on the downside and intermittant rallies are being sold into. “There has been selling and shorting by the FIIs this morning. The level of 8,000 on the Nifty looks vulnerable and we are headed to 7,500 on a six-month horizon,” he says
ASIAN MARKETS
Asian stocks were mostly lower and the euro sagged on Tuesday as insufficient progress on talks between debt-strapped Greece and its creditors kept investors on edge.
MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.3%. Decliners included shares in South Korea, Hong Kong, Malaysia and Thailand, while Chinese equities bucked the trend and rose modestly.
In a closely-watched Eurogroup meeting on Monday, euro zone finance ministers welcomed progress in negotiations between Greece and its creditors but said more work is needed to close a cash-for-reform deal.
SECTORS & STOCKS
All the sectoral indices are trading in the red, with banking, metal and oil stocks doing the most damage.
Banking stocks have dropped ahead of the release of data on inflation based on the consumer price index (CPI) for April 2015. ICICI Bank, Axis Bank, SBI, HDFC and HDFC Bank have plummeted 2-3% each.
Metal shares are witnessing profit-booking after jumping in the previous session on a rate cut by China. Vedanta, Tata Steel and Hindalco slipped between 35 and 4% each.
Oil and Gas companies such as RIL, ONGC, BPCL and HPCL are trading 2-3% lower on the back of a decline in the crude oil prices.
L&T, Tata Motors and NTPC have also shed between 2% and 3% each.
On the gainer’s side, Hero Moto has surged over 4%, while Dr Reddy’s Lab has gained 2% ahead of its quarterly results due later during the day.
The market breadth is weak. Out of 2,450 stocks trading o the BSE, there are 618 advancing stocks as against 1,742 declines.
[“source-business-standard.com”]