Heavyweights drag markets to 28-month low

The Indian markets closed lower for the fifth consecutive day, touching the lowest level in 28 months as heavyweights tumble. The Sensex down 204 points and the Nifty down 69 points.

Headlines for the day

Kingfisher Airlines drops on violation of tax rules

Wockhardt tanks after Mylan gets nod to sell Toprol

Orchid Chemicals secures $1.5 mn payment from Merck & Co.

RIL denies Network 18 stake report



Indian indices

The Indian markets hit 28-month low level today as selling pressure gathered momentum in the last hour of trade and many large cap stocks were trading with deep cuts. Major draggers were L&T, RIL, Tata Steel, SBI, Hero MotoCorp, Tata Power, Bharti Airtel and Hindalco.

Moreover, today's fall was despite not-so-bad global cues. Capital goods, metal, realty, power, auto, consumer durables and banking stocks led the decline.

Sensex movements: The Sensex started the session 57 points higher at 15436 led by gains in the Asian stocks and very soon touched the day's high of 15448. Gains were short-lived as the index slipped in the negative zone in the early trade and remained under pressure. In late trade, the index witnessed a steep slide on the back of pressure from heavyweights and touched the day’s low of 15136. The Sensex dropped 204 points to close at 15175 and the Nifty stood at 4544, down by 69 points.

Market sentiment:

The market breadth was extremely weak. Of the 2855 stocks traded on the BSE, 862 (30.19%) rose, 1877 (65.74%) fell and 116 (4.06%) remained unchanged.

Viewing volumes:

India's second largest developer – Unitech was traded the most, with over 0.46 crore shares changing hands on the BSE. Following that, a Jaypee Group firm - Jaiprakash Associates (0.41 crore shares), Wind turbine major - Suzlon Energy (0.36 crore shares), the world’s largest producer of plastic water tank– Sintex Industries (0.26 crore shares) and India's largest automobile company – Tata Motors (0.22 crore shares).

Sectoral & stock screening:

All the sectoral indices closed lower except BSE FMCG up by 0.37%. Weak performers — BSE CG declined by 3.50%, followed by BSE Metal, which fell by 3.48%, and BSE Realty slipped by 2.71%.

Among 'A' group stocks, top three gainers - Bata India rose by 5.56%, Biocon surged by 5.11% and Ranbaxy Laboratories up by 3.09%. Top three losers - Jain irrigation Systems slipped by 10.99%, Uco Bank down by 10.98% and Wockhardt down by 9.89%.

Global Indices:

The European shares surged on Tuesday (December 20, 2011) on unexpectedly good news about the German economy's prospects, but concerns about problems policymakers are having in tackling the euro zone debt crisis limited gains.

The Asian stock markets closed mixed on Tuesday as market players cashed in any quick gains and remained focused on risks attached to the unresolved sovereign debt crisis in the euro zone.

The US stock index futures pointed to a higher open on the Wall Street on Tuesday.

Market Outlook: US Housing Starts will be out on Tuesday.