RTTNews - After a cautious start, the Indian market has been moving in a narrow range in negative territory on Thursday, as an unexpected acceleration in the pace of contraction in the U.S. service sector and a dismal U.S. private sector employment report dented investor confidence about an early global economic recovery.
Persisting worries about monsoon rains are also weighing on sentiment. As on Tuesday, the cumulative rainfall for the country as a whole was short of the normal level by as much as 25 per cent.
The BSE Sensex opened lower at 15,881 and fell to a low of 15,763 before recouping some of its early loss. The index is now trading at 15,812, down 92 points or 0.58% and the S&P CNX Nifty is trading at 4,671, down 0.48%.
However, the BSE mid-cap index is rising 0.26% and the small-cap index is adding 0.62%. The market breadth on the BSE is also fairly positive, with 1030 gainers compared to 910 losers. Sector-wise, consumer durable, auto, FMCG and IT stocks are bearing the brunt of the selling pressure, while select healthcare, capital goods, public sector, power and banking stocks are up modestly.
Among the top losers, Sterlite Industries is losing 2.45%, Reliance Infrastructure is declining 1.83%, ITC is down 1.81 and Hero Honda Motors is moving down 1.78%.
Bharti Airtel, Maruti Suzuki, Jaiprakash Associates, Tata Steel, Tata Motors, Infosys, Tata Power, ONGC, Reliance Communication and State Bank of India are the other prominent decliners.
On the other hand, BHEL, ICICI Bank, Sun Pharma, NTPC, TCS and DLF are trading in positive territory.
Punj Lloyd is down 1.21% after it raised $140 million by issuing shares to qualified institutional investors. Mangalore Chemicals and Fertilizers plans to expand its new generation fertilizer products portfolio in the next couple of years, reports suggest. The stock is down 1.11%.
Kingfisher Airlines is losing 1.79% after reporting a net loss of Rs.1,608.09 crore for FY09. Jet Airways is down 1.37% on reports that it plans to carry out downsizing of employee strength in a phased manner over the next six months. SpiceJet is also trading down 1.73%.
Vishal Information Technologies fell nearly 27% to Rs.20.80 on becoming ex-bonus for a 1:2 bonus issue. The company said that it is in final stages of term sheet with a European Digitization company for acquisition.
DLF is up a modest 0.03% on reports that it will sell its stake in a life insurance joint venture with U.S.-based Prudential Financial Inc. Vishal Retail is moving down 1.53% even as reports said that it is likely to arrive at an agreement with bankers and lenders on debt-restructuring in 1-2 months.
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