RTTNews - Monday, the Indian market is trading in negative terrain after opening modestly higher this morning. Investors are taking profits, as the market soared almost 90% since its March lows. A mixed trend in the other Asian markets is also weighing on market movement.
The BSE Sensex opened higher at 15,153 and rose to a high of 15,201 before dipping into the red. The index is now trading at 14,944, down 159 points or 1.06% and the S&P CNX Nifty is trading at 4,526, down 1.33%.
Sector-wise, realty, metal and banking stocks are coming under significant selling pressure, while IT, capital good and auto stocks are receiving buying support. Second-line stocks are also correcting sharply after outperforming large-caps in recent sessions. The mid-cap index on the BSE is down 1.70% and the small-cap index is losing 2.38%. The market breadth is negative, with 899 advances compared to 1359 stocks that are declining.
Among the top decliners, State Bank of India is losing 2.96%, Sterlite Industries is declining 2.89%, Tata Steel is down 2.68% and Hindalco is down 2.58%. Ranbaxy, Jaiprakash Associates, DLF, ICICI Bank, Mahindra & Mahindra, HDFC, Reliance Industries and ONGC are the other major losers.
However, Larsen & Toubro is rising 2.74%, Grasim Industries is gaining 1.80%, Tata Motors is adding 1.12%, Sun Pharma is up 0.83%, Maruti Suzuki is moving up 0.34%, Tata Power is edging up 0.31% and NTPC is up 0.14%.
Infosys is rising 2.34% on reports that it will begin operations of a new software development and back officer centre in Brazil within next 3-4 months, to gain more business from the regional market. TCS and Wipro are also trading firm following reports that Wal-Mart Store has shortlisted them for an $500 million outsourcing contract.
Stocks of state-run companies such as Mangalore Refineries, MMTC, Hndustan Copper and State Trade Corp are jumping more than 5% each amid reports that the government will raise Rs.6,500 crore billion from disinvestment in public sector units in the current financial year. Reliance Power is down 2.50% after it reportedly raised around Rs.1,600 crore from financial institutions and banks to part-finance its first phase of a 600-MW group captive power project in Maharashtra.
Telecom stocks such as Bharti Airtel and RCOM are showing modest losses despite reports that the defence ministry has agreed to release 45 mega hertz of radio spectrum to help fast-growing mobile telecom companies expand their 3G and 2G services.
Indiabulls Real Estate is tumbling 4.36% on announcing a 96.26% drop in its net profit for the FY09. ONGC is down a modest 0.34% after its board approved the revised cost estimates for developing the country's most prolific on-land oilfield in Rajasthan and agreed to invest around $350 million more in the fields operated by Cairn India.
Dr. Reddy's Laboratories is up 0.75% after its wholly owned U.S. subsidiary received final approval from the U.S. Food & Drug Administration to manufacture and market Glyburide and Metformin Hydrochloride tablets in the strength of 1.25mg /250 mg; 2.5mg/500mg and 5mg/500mg.
Jet Airways is losing 2.58% on reports that it could defer orders it has placed for 10 Boeing (BA.N) 787 Dreamliner aircraft. Jaiprakash Associates is declining 2.83% after it decided to issue about 1.25 crore shares to its employees at a price of Rs.60/- per share, a steep 75% discount to the stock's closing price on Friday.
ABG Shipyard is up 0.64% after its board of directors approved a resolution to raise funds by issuing equity or convertible securities, including institutional placement. Simplex Projects is locked at the 5% upper circuit limit after it proposed to raise funds through a preferential issue of shares to non-promoters.
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