Markets close in red; Profit booking drags market

The key Indian indices reversed early gains to end near day’s low on the back of profit booking in S&P BSE Sensex movers. The BSE Sensex and Nifty closed 0.33% lower each in trade today. Major Headlines: Lanco Infra bagged EPC orders from GIPCL Idea Cellular in talks with Axiata to sell telecom SBI reduces interest rate on bulk deposits Events for Wednesday (June 05, 2013): HSBC-Markit Services PMI Page Industries to quote final dividend Starcom Information Technology OFS opens tomorrow Indian Indices: Investors at Dalal Street were shocked today when the markets witnessed sudden downfall in the last trading hour. The Indian markets closed in the red zone reversing the gains in morning session. Markets ended lower for the third straight day on Tuesday (June 04, 2013), amid a range bound trading session, after bank shares and selected major S&P BSE Sensex movers witnessed profit booking in late trades. Though the benchmark share indices were trading higher but bears won the race again amid volatility in majority of the sectors which dragged markets lower. Adding further, the fall in the market was also after lenders such as SBI declined on continued uncertainty over rate cuts and on caution as foreign investors sold index futures. The broader markets too ended in red. At the closing bell, the BSE Midcap index gained 0.10%, while the BSE Smallcap index was up by 0.27%. Movement of the Indian indices for the day: D Street witnessed third straight disappointing session as markets reversed gains accumulated in morning trades and posted to their lowest close in a month. Key benchmark indices were trading higher led by buying in rate-sensitive and index heavyweights. Markets edged higher in morning trades this Tuesday. The S&P BSE Sensex slipped below key 19550 levels while NSE Nifty fell below the 5930 mark. Markets remained positive for major part of the day owing to buying activity. However the sudden downfall from day’s high to day’s low spoiled the entire mood in trade today. Foreign institutional investors ( FIIs) sold 29 billion rupees worth of index futures in the last two trading sessions, indicating they are bracing for lower levels in cash shares in the near term, according to news report. The Sensex closed at 19545.78, down by 64.70 points and the Nifty fell 19.85 points to settle at 5919 in trade today. Following are the stocks/ sectors which were in news today: 1. Tata Communications gained 0.93% after the company announced a 'Telepresence' deal with China Mobile. 2. Lanco Infratech surged 3.42%, after the company on late Monday bagged new orders worth Rs3,294 crore. 3. Idea Cellular jumped 3.96%, on media reports that the company is in talks to sell its tower business to Malaysia-based Axiata. Market sentiment The market breadth stood in favor of declines. Of the 2496 stocks traded on the BSE, 1119 (44.83%) rose, 1215 (48.68%) fell and 162 (6.49%) stocks remained unchanged. Sectoral & stock screening Among the 13 sectoral indices, nine sectors closed in the red zone while remaining four sectors closed in the green zone. Top Gainers- BSE HC up by 1.88%, BSE CG rose by 0.77%, BSE Power surged by 0.44% and BSE FMCG up by 0.31%. Top Losers: BSE CD slipped by 1.34%, BSE Bankex fell by 0.95% and BSE Realty declined by 0.86%. Among 'A' group stocks, top three gainers were- Bata India rose by 6.61%, GlaxoSmithkline Consumer Healthcare up by 6.02% and Cadila Healthcare surged by 5.48%. Top three losers were- Jaypee Infratech declined by 5.23%, Dish TV India down by 3.25% and Mphasis fell by 3.22%. Global Signals: Asian shares recovered from their lowest in about six months on Tuesday as weak new US manufacturing data eased worries about the Federal Reserve's stimulus programme, although investors were cautious before a more important jobs report later in the week European shares snapped a two-day losing streak on Tuesday, led by STMicroelectronics after it said full-year order growth would be healthy. US stock index futures poised for a slightly higher opening at the Wall Street on Tuesday.