MUMBAI: Equities opened lower yet again Tuesday tracking declines in markets overseas and as domestic cues were far from encouraging. Apart from spiraling oil prices and lack of participation from FIIs, market men also said with inflation showing no signs of easing, the Reserve Bank may hike interest rates again.
The Sensex, which plunged to 14,919.05 after opening with a negative gap of around 85 points at 14,979.96, has now recovered to 15,038.51 and trimmed down its loss to around 0.18% or 27.59 points, thanks to some strong buying in select front line stocks. The Nifty is down with a loss of 0.4% or 17.90 points at 4483.05. Earlier, after opening at 4522, it had tumbled to a low of 4445.80.
Biggest index losers comprised Tata Consultancy Services (down 2.23%), Jaiprakash Associates (2.21%), ONGC (2.13%), DLF (1.35%), Reliance Infrastructure (1.3%), Hindustan Unilever (1.27%) and State Bank of India (1.26%).
Major midcap losers included Ashapura Minechem down 6.5%, Brigade Enterprise fell over 5%, Gammon India dropped 6%, Indotech Transformers dropped 6%, Lanco Infra down 5.6%, Nucleus Software dropped 7%, Unity Infra dropped 9%, Indus Fila dropped 9%, KPR Mills fell 8.4%, Marksans fell 6.5%, Philip Carbon Black fell 9%
Biggest Sensex gainers were Ranbaxy Laboratories (up 1.6%), Bharti Airtel (0.16%) and Hindalco Industries (0.06%).Market breadth on BSE showed 498 declines against 337 advances.The National Stock Exchange’s Nifty was down 37 points or 0.8 per cent at 4464.35.
Gainers include Himachal Futuristic up 6%, Atlas Copco rose 4.7%, Bata India rose 4.25%, ICSA rose 5%. Prime Focus up over 8%, Torrent Pharma rose 9%, Bajaj Electricals rose 9%, Bosch Chassis rose 20% due to a new offer for delisting, Emkay Shares rose 6.8% on really thin volumes, Fortis Financial Services rose 10% on thin volume of 3000 shares, LGB & Bro rose 11% on news of possible unit stake to Reynolds, Manugraph rose 6% on the BSE, Panchmahal Steels rose 14% on just 61 shares, Zandu Pharma rose 7%. Many smallcap stocks have shown heavy gains on exceptionally thin volumes in today's trade.
Market breadth was poor throughout and closed in the negative with approximately 1082 advancing to 1865 declining stocks on the BSE and 386 advancing to 781 declining stocks on the NSE.
"I think the selling will continue. I don't expect to see any support coming in before Nifty reaches 4300 - the 38.2% retracement level from the January 2008 high to the March 2003 bottom," said Viral Doshi, independent technical and derivatives analyst.
Crude prices dipped more than $4 to settle at $134.35 a barrel on the New York Mercantile Exchange Monday, but only after Friday's $11-a-barrel surge to a new record.
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