Wednesday, the Indian market is trading in negative terrain after opening higher this morning. Although sentiment remains firm due to sustained buying by foreign funds, political uncertainty ahead of the announcement of results of the month-long general elections and profit taking after a 4% rally in the previous session are keeping underlying tone cautious. The election results are due on Saturday.
After opening higher at 12,202, the BSE Sensex slipped into negative territory within a few minutes. The index is now trading at 12,090, down 67 points or 0.56% and the S&P CNX Nifty is trading at 3,659, down 0.59%.
However, second-line stocks are trading firm. On the BSE, the small-cap index is gaining 0.83% and the mid-cap index is adding 1.21%. The market breadth is fairly positive, with 953 advancers compared to 694 stocks that are declining. Sector-wise, while realty and consumer durable stocks are in great demand, IT stocks are coming under significant selling pressure.
Among the major decliners, HDFC Bank, Wipro and Sterlite are losing around 2% each. Tata Steel is down 1.83%, Infosys and TCS are declining by around 1.5% each, Mahindra & Mahindra is down 1.51% and Ranbaxy Laboratories is moving down 1.45%.
ONGC, Bharti Airtel, ITC, Tata Motors, State Bank of India, Hindustan Unilever and ICICI Bank are the other prominent losers. On the other hand, DLF, ACC, HDFC, Hindalco, Grasim, Reliance Infrastructure, Jaiprakash Associates and Tata Power are trading in the green.
JSW Steel is losing 1.17% after its Joint Managing Director & CFO denied that it has plans to sell its US-based pipes and plate-making units. Fortis Healthcare is down 1.81% even as it opened its maiden hospital at Seshadripuram in Bangalore, Karnataka.
Reliance Communication is down 0.35% after the Supreme Court issued notice to the company on a petition by MTNL alleging that the private mobile services provider had tampered with the process of deciphering the point of origin of a call.
NALCO is down 0.81% after it resumed full-fledged operations at its Panchpatmali bauxite hill in Koraput district. Suzlon Energy is moving down 1.24% on reports about dilution of promoters' holdings in favor of institutional investors.
DLF is jumping 5.29% after the promoters announced plans to sell approximately 168 million equity shares, or nearly 10% of the company's equity. Asian Paints is gaining 4.85% on announcing a 7% year-over-year rise in its net profit for the March quarter.
Max India is up 0.03% after the company proposed to raise Rs.1.50 billion by issuing new equity shares on a preferential allotment basis to U.S. based International Finance Corporation.
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