RTTNews - The Indian market is trading sharply lower on Thursday amid weak global cues and profit taking on concerns about stretched valuations. Traders await President of India Pratibha Patil's address to a joint session of both houses later in the day, as she formally discloses the agenda of the UPA coalition government. A section of marketmen fear that the UPA government could be slower on reforms and some expectations on reforms, especially on disinvestments in state-run companies, may not be met.
The BSE Sensex opened lower at 14,755 and fell further in early trading. The index is now trading at the day's low of 14,687, down 184 points or 1.24% and the S&P CNX Nifty is trading at 4,471, down 1.31%.
On the BSE, the market breadth is slightly positive, with 1129 advancers compared to 947 stocks that are declining. While the mid-cap index on the BSE is down 0.18%, the small-cap index is up a modest 0.04%.
Metal stocks are leading the decliners due to weak commodity prices. Among the major losers, Sterlite Industries is plunging 7.09%, NALCO is tumbling 4.44%, Tata Steel is losing 4.08%, Hindalco is declining 3.17% and SAIL is down 2.62%.
Realty, oil/gas and banking stocks are also declining sharply, while defensive FMCG, healthcare and auto stocks are trading firm.
Among the top decliners, ICICI Bank is losing 3.08%, DLF is down 2.77%, ONGC is moving down 2.73% and Tata Power is down 2.04%. Reliance Industries, Jaiprakash Associates, Larsen & Toubro, Infosys, ACC and HDFC are the other prominent decliners.
On the other hand, Maruti Suzuki, Hindustan Unilever, ITC, Tata Motors, Grasim, NTPC, Ranbaxy, Reliance Infrastructure, Mahindra & Mahindra, Sun Phama and TCS are trading in positive terrain.
Kinetic Engineering is locked at the 5% upper circuit limit after it secured an order for supply of specialized transmission gear assemblies from a leading European automobile manufacturer. Anu's Laboratories is rising 2.36% on recommending a 1:1 bonus issue to its shareholders.
DCM Shriram Consolidated is jumping 6.39% after it reported a seven-fold rise in its fourth quarter net profit year-over-year. Reliance Industries is down 1.82% after its German textile arm Trevira filed for bankruptcy due to a severe drop in demand for their products in Europe.
Network 18 Media is losing 4.06% after it proposed to raise Rs.120 crore through preferential allotment of shares to Asian private equity firm SAIF Partners. Stat-run telecom firm ITI is locked at the 5% upper circuit limit on reports about selective disinvestments of three of its six manufacturing plants
Opto Circuits India is up 2.61% after the company decided to raise up to Rs.400 crore through an institutional placement of shares. The company's board also decided to issue up to 6 million convertible share warrants on a preferential basis to its promoters at a price of around Rs.210 per share warrant.
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