Wednesday, the Indian market is trading sharply lower on profit taking dragged down by heavy losses in the U.S. and the Asian markets on worries of weak corporate earnings. The Indian market rose nearly 30% in the past 3-4 weeks from a 3-year low on 9th March.
While heavy selling has emerged across the board, banking, realty and metal stocks are leading the decliners. The BSE Sensex made a gap-down opening at 10,284 and is moving in a narrow range. The index is now trading at 10,203, down 332 points or 3.15% over the previous close and the S&P CNX Nifty is trading at 3,164, down 2.85%.
On the BSE, the market breadth is negative, with 933 decliners compared to 763 stocks that are gaining. The broad-based BSE 500 index is losing around 2.5%, while the mid-cap index is down 0.71% and the small-cap index is trading almost flat.
Among the major losers, Hindalco Industries is plunging 6.34%, Reliance Communication is tumbling 5.82%, HDFC Bank is losing 5.56%, Jaiprakash Associates is declining 5.13% and ONGC is moving down 4.86%.
Bharti Airtel, Reliance Infrastructure, DLF, State Bank of India, Mahindra & Mahindra, Sterlite Industries, HDFC, ICICI Bank, Tata Steel and Tata Power are the other prominent decliners.
However, Sun Pharmaceuticals, ITC, Hindustan Unilever, NTPC and Tata Motors are trading in positive terrain.
Reliance Industries (RIL) is losing 2.66% after its shareholders and creditors approved the merger of Reliance Petroleum with RIL. Great Eastern Shipping is down 1.41% after it signed a contract to sell a dry bulk carrier to be delivered to the buyers in the first quarter of FY10.
Power Grid Corporation is down 0.97% on reports that it would borrow $2 billion from the World Bank (WB) and Asian Development Bank (ADB) to part finance its Rs.550 billion investment plans till 2012.
Reliance Infrastructure is declining 4.57% after the company said that it would close the buyback of equity shares on April 8. Maruti Suzuki is down 0.77% on reports that it will invest Rs.2000 crore in capital expenditure and research and development in fiscal 2009/10.
NIIT is rising 3.56% after it entered into a deal to provide information and communications (ICT) education in 29 municipal schools in New Delhi. Kinetic Engineering is up 4.87% after the company said it has commenced the supply of various gears to Tata Motors for its new revolutionary car ' Tata Nano'.
Vijay Shanthi Builders is gaining nearly 5% after the company announced the launching of an affordable housing project 'INFINITI'. Suven Life Sciences is adding 3.23% on reports that it will raise funds for the phase two trials of molecule for Alzheimer's disease through a combination of debt, equity and strategic partner.
Gammon India is climbing 6.79% on bagging an order worth Rs.400 crore from Punatsangchhu Hydro Electricity Project authority for construction of approximately circular shaped concrete lined headrace tunnel at Wangdue, from Thimpu, Bhutan.
Rashtriya Chemicals & Fertilizers is up 0.97% after it signed an agreement with Future Products to set up a joint venture company to market wall panels, putty and other related products by using gypsum.
Omnitech Solutions is jumping nearly 5% after it signed a multi-year contract with companies from Europe and US to offer remote infrastructure management services and virtual CIO offerings respectively.
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