Weak global cues weigh on markets

The Indian markets drifted lower in the second half of trade as weak global cues weigh; the Nifty closed below 6000 levels after struggling around that level

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Indian indices

The Indian markets edged lower amid volatility, with the Nifty closing below 6000 levels after struggling around that level. China’s Shanghai Composite falling by 2% in late trade in the wake of the weekend rate hike and negative European markets weighed on the Indian markets in the second half of the trade.

The sell-off in metal, realty, PSU, Anil Dhirubhai Ambani Group, power and select infrastructure companies' shares along with heavyweights Reliance Industries, Larsen & Toubro and ITC dragged the markets. However, the markets got some support from healthcare (HC), cement and select technology companies' shares along with ONGC, ICICI Bank, BHEL, HUL, Tata Power, Hero Honda and Maruti Suzuki, which limited losses.

The Sensex began the trade 11 points lower at 20063 and immediately turned positive. The index extended gains and hit the day’s high of 20190 in the mid morning session. The Sensex was in the green all through the morning trade. In the afternoon session, fall in the Chinese markets in late trade and negative opening for the European markets dragged the Sensex lower. In the late trade, the Sensex hit the day’s low of 20010 owing to selling pressure in metal, realty and PSU stocks.

Finally, the Sensex fell by 45 points to close at 20029 and the Nifty shut 14 points lower at 5998.

Market sentiment

The market breadth was more or less neutral. Out of the 3,017 stocks on the BSE, 1,461 rose while 1,399 fell. Hundred and fifty-seven stocks traded unchanged.

Sectoral and stock screening

Among the 13 sectoral indices, ten sectors fell while rest three managed to rise. BSE Metal was the top loser declining by 1.24%, followed by BSE Realty down by 0.82% and BSE PSU fell by 0.51%. On the flip side, BSE HC was the top gainer rising by 0.61%, followed by BSE Information Technology (IT) up by 0.25% and BSE Consumer Durables (CD) gained by 0.23%

Among 'A' group stocks, top three gainers - Dish TV India surged by 3.83%, BGR Energy gained by 3.68% and Mahindra & Mahindra Finance rose by 2.53%. Top three losers - Steel Authority of India fell by 4.34%, Idea Cellular slid by 3.63% and Reliance Communications lost by 3.56%.

Viewing volumes

Wind turbine major - Suzlon Energy was the most traded, with over 0.57 crore shares changing hands on the BSE, followed by India's Number 2 mobile carrier - Reliance Communications (0.32 crore shares), sugar major - Shree Renuka Sugars (0.26 crore shares), India's second largest developer - Unitech (0.20 crore shares) and Indian shipbuilding company Pipavav Shipyard (0.15 crore shares).

Global signals

The European markets fell in thin trade, halting a December rally after China's decision to raise interest rates over the weekend raised concerns about the outlook for global growth. UK markets were closed today for a public holiday.

The Asian indices closed mixed. Japan's Nikkei closed 0.75% higher. Shanghai and Seoul shut 1.90% and 0.37% lower as the impact of China's weekend interest rate rise sunk into thin markets. Hang Seng was shut today.

The US stock index futures fall and point to a lower opening on the Wall Street tonight.

Market Outlook: In the US tonight, there will be release of Dallas Fed Manufacturing Index, which is expected at 17 for the month of December versus 16.2 seen in the previous month.