RTTNews - Friday, institutional selling in late trading dragged down the benchmarks Sensex and the Nifty to their lowest closing levels since May 15. For the week, the benchmark indexes corrected nearly 10% following the disappointment over the Union Budget.
Earlier in the morning, the Indian market opened modestly higher on the back of better-than-expected results from Infosys. After trading choppily for most part of the day, the market rose sharply in the afternoon following improved May industrial production numbers. However, the recovery proved short lived, as huge sell off across all the sectors with the exception of IT dragged the market sharply down in the last hour.
Weekend profit taking amid weak global cues and worries that the RBI would not cut rates further weighed on the market, while investors gave little attention to reports that suggested fears of drought may have eased with the country receiving good rains in the last two weeks. Despite faltering exports, India's industrial output grew 2.7% in May compared to a downwardly revised 1.2% in April, government data showed.
The BSE Sensex moved in a range of 13,897 and 13,418 before finishing at 13,504, down 253 points or 1.84% from its previous close. The S&P CNX Nifty fell 77 points or 1.89% to 4,004, the BSE small-cap index shed 1.79% and the mid-cap and broad-based BSE 500 indexes ended down nearly 2% each.
On the BSE, the market breadth was extremely negative, as decliners outnumbered advancers by 1787 to 771, with 79 stocks closing unchanged. Sector-wise, oil/gas, power, capital goods and realty stocks bore the brunt of the selling.
Reliance Infrastructure(down 6.50%), Jaiprakash Associates(down 5.62%), Reliance Communication(down 5.43%), HDFC(down 4.66%), Sun Pharma(down 4.16%), Reliance Industries(down 3.99%) and Mahindra & Mahindra(down 3.88%) were the top losers.
Among the Sensex constituents, besides IT stocks, only Sterlite, Maruti Suzuki and Hindustan Unilever ended in positive territory.
Infosys rose 2.97% after it raised the lower end of its FY10 forecast in dollar terms. Wipro gained 3.37%, TCS added 1.56% and HCL Technologies ended up 0.74%. Mahindra Satyam rose 2.05% after Tech Mahindra raised its stake in Satyam to 43 percent.
Matrix Laboratories closed unchanged on reports that it has filed an application under Section 64 of the Patents Act,1970 for revocation of a patent granted to Yeda Research and Development. Visa Steel surged up over 9% following reports that it plans to invest Rs 1,000 crore for adding 275 MW capacity to its 50- MW power plant in Orissa over the next three years.
Madras Cements fell 3.35% on reports that it will invest Rs 280 crore to set up 65 megawatt of coal-based captive power plants at two of its cement production facilities. Orbit Corp tumbled 4.75% after it received shareholder nod to raise as much as Rs.500 crore by selling shares either through a preferential issue or the QIP route.
Among multiplex operators, PVR, Cinemax, Adlabs and Inox Leisures ended deep in the red despite reports that there is a turnaround in occupancy levels after a long gap. Cairn India advanced 1.63% on reports that it may start producing oil from a field in Rajasthan during the three months to August. However Reliance Industries fell nearly 4% and ONGC ended down 1.26%.
Punj Lloyd ended down 0.67% even as Sembawang Engineers and Constructions (Sembawang), its wholly owned subsidiary in Libya, secured three breakthrough projects worth approximately Rs.5,904 crore from a firm linked to the Libyan government. Alstom Projects India slumped over 6% despite winning an order worth Rs.2.65 billion from Lanco Infratech.
Likewise, McNally Bharat Engineering declined 1.03% after bagging two orders worth Rs.93 crore. Suzlon Energy ended down 3.65% after its wholly-owned Spanish unit bagged 224.5 megawatt wind turbine orders from EUFER(joint-venture between ENEL Green Energy and Spanish Utility UNION FENOSA for renewable energy business in Spain and Portugal).
State-run mining giant NMDC will negotiate 33% lower rates on iron ore fines and 44% on iron ore lumps with Japanese and South Korean steel mills following the global benchmark rate set by global mining firm Rio Tinto, reports said. However, the stock plunged 6.30%.
Bajaj Auto gained 1.14% after it announced the launch of its new 100cc motorcycle 'Discover DTS-Si' on 27 July. Dabur India gained 1.68% and Colgate Palmolive added 2.60% on the back of execution of block deals on the stock exchanges.
Aegis Logistics plummeted over 7% despite the company''s board approving a share buy- back proposal. Aurobindo Pharma fell 3.62% despite receiving an approval from the U.S. drug regulator for a generic drug
On the BSE, Educomp Solutions topped the traded value chart with a turnover of 266.77 crore followed by Reliance (Rs 205.89 crore), Reliance Capital (Rs 201.77 crore), Suzlon (Rs 183.69 crore) and Unitech (Rs 165.10 crore).
Unitech led the traded volume chart with trades of 23.27 million shares followed by Cals Refineries (22.73 million), Suzlon (21.08 million), Mahindra Satyam (20.03 million) and Reliance Natural Resources (10.11 million) shares.
Elsewhere, most of the other Asian markets ended in the red with marginal losses ahead of the weekend, European stocks were trading in negative territory dragged down by Chevron's disappointing interim update and U.S. stocks were set for a lower opening Friday morning, as weaker sentiment stemming from the ongoing economic uncertainty is expected to weigh down on markets.
Light sweet crude oil for August delivery was last trading below the $60 a barrel mark, losing $0.82 at $59.59, after ending the previous session with a gain of 27 cents at $60.41 a barrel.
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