Nifty below 5K on Euro zone worries

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Global signals

European stocks fell on third straight day as worries about debt level in Europe persist and German utilities down after the government announcement to impose a tax on nuclear fuel. As of writing this report, FTSE 100 was trading at 0.83% lower.

All the major Asian indices closed in the positive territory except Straits times that closed marginally lower. SGX Nifty closed 78.50 points lower.

The US stock index futures signal mixed opening at the Wall Street on Tuesday as persistent fears over Europe's debt crisis hit the region's stocks and overshadow soothing comments from Federal Reserve’s Chairman Ben Bernanke.

Indian indices

Bears continued to act together on the second consecutive day. Despite of firm Asian cues, the Indian indices wiped out its morning gains to close in the negative territory. The bourses witnessed losses of around 1% on the back of weak European markets as Euro zone debt worries persist and German governments’ announcement to impose a tax on nuclear fuel.

The Sensex opened 20 points lower at 16761, trading in the red briefly and soon turning positive on firm Asian markets. The markets remained choppy throughout the session. The markets trimmed gains in mid-morning trade on profit taking. The key benchmark indices regained strength in early afternoon trade to touch the day’s high of 16896. Post lunch, the European markets turning negative dragged the domestic market lower. A sell-off gripped the market in mid-afternoon trade as the Sensex hit the day’s low of 16560 while Nifty breached the crucial 5000 levels. Finally, the Sensex ended the session 164 points down at 16617. The Nifty signed off below 5000, at 4987, 47 points lower.

Market sentiment

The market breadth was negative as trailing shares outpaced the advancing stocks. Of the 2,927 stocks traded on the BSE, 1,672 stocks declined, whereas 1,126 stocks gained. Hundred and twenty nine stocks traded unchanged.

Sectoral & stock screening

All the 13 sector indices on the BSE closed in the red except BSE fast moving consumer goods (FMCG) that closed higher by 0.69%. Sectors that were hit the worst were - BSE Realty down by 2.57% and BSE Metal declined by 2.19%. Rest of the sectors fell in the range of 0.25%-1.38%.

Among 'A' group stocks, Mahindra & Mahindra Financial was the star stock of the day posting gains of 8.72%, followed by Procter & Gamble that surged by 4.38% and Hindustan Copper that rose by 3.07%. Among losers, REI Agro slid the most by 9.05%, followed by Hindalco Industries that fell by 5.81% and GTL Infrastructures that shed 5.01%.

Viewing volumes

India's second largest listed cellular services provider by sales - Reliance Communications saw highest trading with over 0.70 crore shares changing hands on the BSE, India’s second largest developer - Unitech (0.50 crore shares), aluminum major - Hindalco Industries (0.49 crore shares), industrial finance company - IFCI (0.37 crore shares) and followed by wind turbine major - Suzlon Energy (0.32 crore share).