Weak global cues drag Sensex 115 points lower

The Indian markets drifted lower snapping two-day winning streak as weak global cues weigh. The Sensex closed below 18500 level.

Major headlines

PIL filed against Dayanidhi Maran; Sun TV down 28%

Bank credit grows 22.3% in May

Economy may grow by 8.5% in FY12: Rangarajan



Indian indices

After attaining their highest closing level in more than 4 weeks yesterday, the Indian indices fell into the bears grip in today’s trade on heightened worries about the global economic outlook. The markets reacted to the global weakness and traded in a consolidation mode with losses. The news of probe into ADAG group on 2G scam spooked the markets in last hour of trade.

The sell-off in bank, metal, realty, auto, power, Anil Dhirubhai Ambani Group companies' shares along with heavyweights ICICI Bank, Tata Motors, Reliance Communications and Reliance Infrastructure dragged the markets. However, the markets got some support from fast moving consumer goods (FMCG) and consumer goods (CD) companies' shares along with HUL, Bajaj Auto, ITC and RIL, which limited losses

Anil Dhirubhai Ambani Group companies' shares took huge beating in last hour of trade, especially after the news that CBI Trial Court will pass order on plea to probe Anil Ambani today. Reliance Communications and Reliance Infrastructure lost over 4%. Reliance Power and Reliance Capital fell 2.7% each.

The Sensex began the session 183 points lower at 18426 on weak global cues, immediately hitting the day’s low of 18391. The index remained under pressure as global worries continued to weigh. However, some buying in FMCG and CD stocks lifted the sentiments leading the Sensex to touch the day’s high of 18541 in the afternoon session. The Nifty swung around the 5550 level and shut 42 points lower at 5550, while the Sensex fell 115 points in today’s trade to close at 18494.

Market sentiment

The market breadth stood extremely weak. Out of the 2,948 stocks traded on the BSE, 1,659 fell while 1,148 rose. 141 stocks traded unchanged.

Viewing volumes

India's largest media conglomerate - Sun TV Network was the most traded, with over 1.15 crore shares changing hands on the BSE, followed by India's Number 2 mobile carrier - Reliance Communications (0.60 crore shares), wind turbine major - Suzlon Energy (0.28 crore shares), India's second largest developer - Unitech (0.28 crore shares) and a part of the Anil Dhirubhai Ambani Group – Reliance Capital (0.16 crore shares).

Sectoral & stock screening

Among the 13 sectoral indices, ten sectors fell while rest three managed to rise. BSE Bankex was the top loser declining by 1.52%, followed by BSE Metal down by 1.32% and BSE Realty fell by 1.26%. On the flip side, BSE FMCG was the top gainer rising by 1.01%, followed by BSE CD up by 0.34% and BSE Oil & Gas gained by 0.15%

Among 'A' group stocks, top three gainers — Rajesh Exports surged by 4.06%, Hindustan Unilever gained by 3.53% and Fortis Healthcare rose by 3.40%. Top three losers — Sun TV Network fell by 27.90%, Sterling International Enterprises slid by 8.56% and D B Realty lost by 5.18%.

Global signals

European markets fell adding to losses suffered in the previous sessions as weak economic data fuelled worries that the US recovery is losing momentum and on the reports that Moody's downgraded Greek debt.

Majority of the Asian indices closed lower more than 1%, after disappointing US data added to suspicions that the global economy may slow down.

The US stock index futures point to a slightly higher opening on the Wall Street on Thursday.

Market Outlook: Jobless claims and factory orders data will be released in US tonight.