Dalal Street closes in slump; Sensex loses 192 pts

Indian equities dropped on Thursday erasing earlier gains. The Sensex ended on a depressing note following weak European cues. On sectoral front, metal, realty, auto and IT stocks traded in red which also weighed on the sentiment. Even a sharp fall in food inflation didn`t excite the markets.The broader markets however outperformed to close on a flat note. Auto sales figures were out today.The market opened flat with negative bias tracking negative Asian peers and slipped further as selling intensified across board. Finally, the index wrapped on a weak note after touching a low of 17,455.41.



European stocks dropped for a third day after China`s manufacturing growth slowed and Moody`s Investors Service said it may cut Spain`s top credit rating. US index futures fell.

Meanwhile, Food inflation fell sharply to 12.92% for the week ended June 19 from 16.90% in the previous week as cost of cereals and vegetables declined.

Asian stocks fell, dragging down the MSCI Asia Pacific Index towards its lowest level in three weeks, after Chinese manufacturing growth slowed and Moody`s Investors Service said it may cut Spain`s top credit rating.

At the close, the benchmark 30-share index, BSE Sensex lost 191.57 points or 1.08% at 17,509.33. Meanwhile, the broad based NSE Nifty fell by 61.10 points or 1.15% at 5,251.40.

Sensex Movers

I C I C I Bank contributed fall of 29.21 points in the Sensex. It was followed by Reliance Industries (24.44 points), Tata Consultancy Services (14.91 points), State Bank Of India (14.53 points) and Infosys Technologies (13.03 points).

However, Hindustan Unilever contributed rise of 7.44 points in the Sensex. It was followed by Bharti Airtel (2.29 points), Grasim Industries (1.98 points), Reliance Infrastructure (1.82 points) and NTPC (1.66 points).

Major gainers in the 30-share index were Hindustan Unilever (2.02%), Reliance Energy (0.81%), Bharti Airtel (0.51%), NTPC (0.40%), and Tata Power Company (0.02%).

On the other hand, Sterlite Industries (India) (3.18%), Reliance Communications (3.03%), Tata Consultancy Services (2.64%), Wipro (2.51%), I C I C I Bank (2.39%), and Tata Steel (2.20%) were the biggest losers in the Sensex.

Mid & Small-cap Space

The BSE Midcap settled lower -27.89 points or 0.11% at 7,121.32 however the Bse Smallcap gained 0.11 points or 10.12% at 9,071.20 at the closing.

The major losers in the BSE Midcap were Core Projects and Technologies (1.73%), Alstom Projects India (1.62%), Allahabad Bank (1.39%), A I A Engineering (0.78%) and Ackruti City (0.59%).

The major gainers in the BSE Smallcap were INEOS ABS (India) (4.03%), Adhunik Metaliks (2.44%), Ahluwalia Contracts (India) (2.06%), Action Construction Equipment (1.73%) and Provogue (India) (0.93%).

Sectors in Limelight

The Metal index was at 14,454.90, down by 249.35 points or by 1.7%. The major losers were JSW Steel (2.29%), Hindustan Zinc (1.99%), Jindal Steel & Power (1.66%), Hindalco Industries (1.04%) and NMDC (0.19%).

The Realty index was at 3,150.57, down by 46.25 points or by 1.45%. The major losers were Housing Development and Infrastructure (2.48%), D L F (1.53%), Indiabulls Real Estate (0.92%), D B Realty (0.61%) and Ackruti City (0.59%).

The Auto index was at 8,220.57, down by 102.73 points or by 1.23%. The major losers were Amtek Auto (2.28%), Ashok Leyland (1.8%), Exide Industries (1.29%), Apollo Tyres (1.16%) and Bharat Forge (0.67%).

On the other hand, the IPO index was at 2,137.22, up by 7.57 points or by 0.36%. The major gainers were Indiabulls Power (2.58%), Birla Cotsyn (India) (1.16%), D B Corp (0.31%), Goenka Diamond and Jewels (0.27%) and Cox and Kings (India) (0.07%).


Market Breadth

Market breadth was negative with 1,432 advances against 1,482 declines.

Value and Volume Toppers

Redington (India) topped the value chart on the BSE with a turnover of Rs. 4,268.31 million. It was followed by Hindustan Petroleum Corporation (Rs. 2,419.13 million), I F C I (Rs. 966.52 million) and Reliance Infrastructure (Rs. 944.43 million).

The volume chart was led by Cals Refineries with trades of over 32.65 million shares. It was followed by FCS Software Solutions (28.58 million), Supertex Industries (17.37 million) and I F C I (16.72 million).

Auto industry continued to register a healthy growth in the month of June 2010. TVS Motor Company, India`s leading two wheeler manufacturers, registered an increase of 36% in sales for the month of June 2010. During the month, total two wheeler sales of the company stood at 156,685 from 115,448 units in June 2009. On a sequential basis, the company reported only a marginal rise of 1.34%.

On the other hand, India`s largest car marker, Maruti Suzuki, clocked sales of 88,091 vehicles, a rise of 17.28% against the prior year period. However, the company reported a dip of 13.78% when compared on a sequential basis.

Listing

Parabolic Drugs was listed at Rs 76.8 on the BSE today. The issue price was Rs 75. The stock fell 13.60% in trade.