Choppy Sensex under pressure; RIL, SBI outperform

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The market continued to trade lower amid volatility. Heavyweights ICICI Bank, L&T and Bharti Airtel have taken substantial beating, which is reflected in the indices. Even metals, auto, real estate and power stocks are under pressure. However, only two major index heavyweights SBI and Reliance Industries managed to cap the downside.

Abhijit Chakraborty of Fortune Equity Brokers has a downbeat view on the market. Going forward, he feels there is more credence to the call for a correction in the market because the market is not giving importance to the CPI inflation index. He doesn't believe the RBI will cut interest rates which is something the market is largely banking on to push it higher.

The Sensex was down 65.56 points at 18,080 and the Nifty fell 21.6 points to 5,484. The BSE Midcap and Smallcap indices declined 1.4-1.8%.

Metals, realty, power and auto stocks were down for second consecutive session. The BSE Realty Index tumbled over 3%; DLF plunged over 2.5%.

Among metals, Hindalco, Tata Steel and Jindal Steel were down 1-2% whereas Sterlite crashed 5%.

Shares of L&T, ICICI Bank and Bharti Airtel dropped 2% while SBI and Reliance Industries gained 1%.

FMCG major HUL rose 1.5% and capital goods major BHEL climbed just 0.85%.

In the second line shares, Alfa Laval shot up 15.4% after company received strong response for its delisting offer. Amtek Auto, Tulip Telecom, GRUH Finance and Voltas were up 3.5-5% whereas Prestige Estate, IFCI, HDIL, Havells India and Kalpataru Power fell 5-6.5%.

At 10:45 hours IST: Nifty struggles at 5500; broader markets down 1%

The Nifty struggled to hold the 5500 level in early morning trade on concerns over a slowdown in the global economy, including higher oil prices and data showing the eurozone may be sliding toward recession, fanning fresh worries about Greece.

The sectors under pressure were metals, auto and power stocks. Heavyweights Bharti, L&T and ICICI Bank too were under pressure.

However, index heavyweights SBI and Reliance Industries were supporting the market.

The BSE benchmark dropped 58 points to 18,087.08 and the NSE benchmark slipped 20.55 points to 5,484.80. The broader markets underperformed benchmarks - the BSE Midcap and Smallcap indices fell 1.25% each.

The market fell due to tepid economic growth in eurozone, consistent worries over Greece even after second bailout of 130 billion euro and rising crude oil prices that made global markets worrried about inflation. Yesterday the Sensex crashed 283 points.

Goldman Sachs said it expects Brent crude prices to rise to USD 127.50 a barrel over the next 12 months in order to restrain demand growth and keep it in line with available supplies. According to Holland, higher crude prices remain a key worry for India. Brent crude oil trades at USD 122.7 a barrel.

Shares of Sterlite Industries topped the selling list, losing over 4% after sources reclaimed on Tuesday that Sesa Goa will be merged with the company.

Major largecaps like Bharti Airtel, ICICI Bank and L&T were down 1-2%. DLF too fell 2% after initial spike due to selling of apartments in Gurgaon.

M&M, Hero Motocorp, Jindal Steel, Tata Power, Hindalco and Maruti among other largecaps fell 1-1.8%.

However, index heavyweights Reliance Industries and SBI gained 1% & 1.7%, respectively. FMCG majors ITC and HUL rose 0.4-1%.

The market breadth was weak; about two shares declined for every share rising on the BSE.