Markets break 6-day advance as heavyweights drag

Reliance Industries was the main culprit behind today’s downtrend, which dragged the Indian markets lower after six-day uninterrupted rally.

Major Headlines

RIL slips after CBI search at premises of ex-DGH head V K Sibal

Exports surge 56.9% in May

M&M auto sales up 29% in June


Indian indices

Markets witnessed pressure after rising for the six days in a row dragged down by heavyweights like Reliance Industries, Bharti Airtel, HUL and L&T. The key indices ended the first day of July F&O series in the negative territory. Investors booked profit at higher levels after six-day rally. The Nifty had touched important psychological levels of 5700 and the Sensex hit the 19,000 mark, but indices could not hold those levels for long. The BSE Midcap up by 0.69% and BSE Smallcap up 0.83% outperformed the Sensex.

Sensex movements: The Sensex began the trade 129 points higher at 18975 and immediately touched the day’s high of 19031. The index pared initial gains and slipped into red in the mid afternoon trade as RIL led the fall. Ext ending losses, the Sensex hit the day’s low of 18713. The Sensex lost by 83 points to close at 18763 and the Nifty stood at 5627, down by 20 points.

Bonds & Rupee

India’s 10-year bonds were set for the worst week in more than two months on concern that the biggest government debt sale of 2011 will damp demand. India’s rupee headed for the biggest weekly advance in almost three months after global funds added to holdings of the nation’s assets to benefit from growth in Asia’s third-biggest economy.

Market sentiment

The market breadth stood strong. Of the 2,984 stocks traded on the BSE, 1,700 rose, 1,152 fell and 132 stocks remained unchanged.

Viewing volumes

One of the fastest growing integrated infrastructure enterprises of India - Lanco Infratech was traded the most, with over 0.52 crore shares changing hands on the BSE. It was followed by an industrial finance company - IFCI (0.41 crore shares), India's second largest real estate developer - Unitech (0.28 crore shares), one of the largest oil and gas exploration and production company - Cairn India (0.24 crore shares) and realty major - DLF (0.23 crore shares).

Sectoral & stock screening

Eight sectors closed the session higher, while five declined. Gainers - BSE Realty rose by 3.01%, followed by BSE Information Technology (IT) up by 0.78% and BSE Metal up by 0.57%. Losers - BSE Oil & Gas was the top loser, declining by 1.84%, followed by BSE Consumer Durables (CD) down by 0.79% and BSE Healthcare (HC) lost by 0.34%.

Among 'A' group stocks, top three gainers were - Shriram Transport Finance Company jumped by 6.24%, Indiabulls Financial Services surged by 5.48% and IFCI rose by 5.25%. Top three losers were - Jubilant FoodWorks fell by 9.05%, Videocon Industries slipped by 6.49% and Reliance Industries slid by 3.95%.

Global signals

The European stocks recovered from early losses on Friday, but gains were muted as investors took a breather following four straight days of gains, and as attention shifted back to global growth prospects.

All the Asian markets closed in the positive zone on Friday barring Shanghai Composite down by 0.10%. Hang Seng index was shut today.

The US stock index futures signal positive opening on the Wall Street on Friday.

Market Outlook: ISM Manufacturing Index will be out in the US on Friday.