Tuesday, June 8, 2010

Sensex falls 1% on weak cues from Europe

Indian stock markets ended below psychological support levels Tuesday, reacting sharply to negative cues from European peers. Realty, metals and oil&gas were the worst hit sectors while FMCG stocks ended marginally higher.

Indices opened on a positive note mirroring modest gains in Asia. However, traders pressed sales following further decline in Europe. According to dealers, the mood is still bearish and short trades must have been initiated.

Bombay Stock Exchange’s Sensex closed at 16,617.10, down 163.97 points or 0.98 per cent. The index touched a low of 16,560.64 and high of 16,895.73 during the session.

National Stock Exchange’s Nifty ended at 4897.10, down 46.90 points or 0.87 per cent. The broader index touched a low of 4967.30 and high of 5071.35 intraday.

“We continue with our stance that market is headed towards 4800 levels. The rally from 4950-5100 in June was mainly on account of short covering. There are not many shorts that would give a meaningful bounce back at current or lower levels,” said Siddharth Bhamre, head-derivatives, Angel Broking.

The BSE Midcap Index and BSE Smallcap Index ended 0.55 per cent lower each.

Amongst the sectoral indices, BSE Realty Index fell 2.57 per cent, BSE Metal Index moved 2.19 per cent lower and BSE Oi&gas Index declined 1.38 per cent.

Hindalco (-5.81%), Reliance Communications (-4.69%), Bharti Airtel (-3.77%), ICICI Bank (-3%) and DLF (-2.57%) were the top Sensex losers.

Bharti Airtel completed a deal to buy Kuwait-based Zain Telecom's African business for $10.7 billion (about Rs 48,000 crore) Tata Power (1.43%), Cipla (1.31%), HDFC (0.86%), ITC (2.25%) and NTPC (0.50%) were the top index gainers.

Market breadth was negative on the NSE with 1838 losers against 1249 gainers.

European markets failed to hold on to early gains and Eurozone fears continued to hurt sentiments. Meanwhile, US futures pointed to flat-to-positive start. At 4:30 pm IST, Dow Jones futures was down 0.28 per cent, S&P 500 inched 0.29 per cent higher and Nasdaq gained 0.28 per cent.


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