Mkts in red; RIL, Infy, Wipro, BHEL, HDFC, L&T drag

ALSO READ See Key Market Stats - Top Gainers/ Losers, Most Actives, Highs/Lows See how Global Markets are trading Indian ADRs Nifty BSE | NSE 25/05/12 Are Mutual Funds betting on Nifty?

Benchmark indices extended losses further on account of selling pressure in Reliance Industries, BHEL, HDFC, Infosys, Wipro, SAIL, ITC, TCS, L&T, ICICI Bank, Hero Honda, Sterlite Industries, Tata Steel, Tata Motors, Unitech, DLF, Ambuja Cements and ACC.

However, buying continues in Bharti Airtel, ONGC, NTPC, Reliance Communication, Idea Cellular, Tata Power, Tata Communication, Ranbaxy Labs, Siemens, HDFC Bank, HCL Tech and Reliance Power.

The Sensex tumbled 163 points to 9,373 and the Nifty went down 30 points to 2,818, at 12:03 pm. BSE Midcap Index fell over 1% and Small Cap Index lost over 0.5%.

Market breadth is in favour of declines; about 1223 shares have advanced while 1735 shares have declined. Nearly 234 shares are unchanged.

Technology stocks are the main draggers, as CLSA said Infosys is likely to miss its upper end of Q3 dollar revenue guidance and might post a sequential fall in dollar terms, reports CNBC TV18 quoting Newswire18. However, it added that Infosys remains the sole outperformer among Indian tech shares.

The terms of IT deals from the BFSI, or banking, financial services and insurance, segment has 'worsened substantially', it said, adding that long-term deals were being offered on 'very tough terms'.

Capital Goods stocks are also down; leaders like L&T and BHEL lost 2.5-4.5%.

Tushar Poddar of Asia Economics Research at Goldman Sachs believes shock to financial sector will increasingly translate to real economy. According to him, export sector is facing a severe slowdown and will continue for a year or so.

He said the pick up in Indian economic activity is unlikely before end of 2009. According to him, the slowdown won't trough out anytime soon and sees FY10 GDP growth at 5.8%.

He believes capex spend has come to a halt and sees IIP at average of 4% for FY09. "Corporate balance sheets are shrinking and financing is under severe pressure." According to him, there is a little room for India to spend its way out of trouble. He expects RBI to cut repo by 200-250 bps and a reverse repo cut also.

Markets @ 11:29 am : Mkts choppy; Bharti, ONGC, RComm, NTPC support

Benchmark indices are witnessing selling pressure along with some volatility, as weakness is seen in capital goods, technology, auto, FMCG, cement and select oil stocks. However, realty, telecom, power and select metal stocks are holding in green. Midcap and small cap stocks also turned into red.

The Sensex fell 128 points to 9,407 and the Nifty lost 22 points to 2,826, at 11:29 am. BSE Midcap and Small Cap indices are down about 0.4-0.8%.

Amit Khurana, Head of Equities at Collins Stewart Singapore  feels markets are likely to retest October lows. He sees range for the Nifty between 2600-3200. 

Reliance Industries, BHEL, Infosys, Wipro, ITC, SAIL, L&T, HDFC, Hero Honda, SBI, TCS, M&M, Tata Motors, Tata Steel, Ambuja Cements, Satyam and ACC are under pressure.

However, buying is seen in Bharti Airtel, ONGC, NTPC, Reliance Communication, Reliance Infrastructure, Tata Power, Reliance Power, Idea Cellular, PNB, Ranbaxy Labs, Sterlite Industries, HDFC Bank, Hindalco and NALCO.

Market breadth is negative; about 1325 shares have advanced while 1625 shares have declined. Nearly 242 shares are unchanged.

Markets @ 10:38 am : Mkts off day's high; Sensex slips below 9500

The markets are trading flat with some choppiness, after giving up early gain, as sell off is seen in Reliance Industries, Infosys, Wipro, BHEL, L&T, SAIL, ITC, TCS, HDFC, HUL, ITC and Hero Honda. However, buying continues in realty, banking and telecom stocks.

The Sensex fell 32 points to 9,504 while the Nifty gained 7 points at 2,855, at 10:38 am. BSE Midcap and Small cap indices are flat.

Market breadth is flat; about 1449 shares have advanced while 1498 shares have declined. Nearly 245 shares are unchanged.

Telecom stocks are strong, as Japanese company, NTT DoCoMo is going to buy Tata Teleservices. Bharti Airtel, Tata Communication and Idea Cellular jumped over 4% each. Reliance Communication gained 3%. Tata Teleservices (Maharashtra) surged over 10%.

On the global front, Asian markets are trading higher barring Kospi. Nikkei, Shanghai, Hang Seng, Straits Times and Jakarta rose 1-3%. However, Kospi fell 1%.

Markets @ 10:22 am : Mkts marginally up; Infy, Wipro, BHEL, TCS, RIL lag

The markets are still trading higher, despite giving some early gain. Realty, banking, metal and power stocks are witnessing buying interest. However, selling is seen in technology, select oil, FMCG and auto stocks.

The Sensex rose 55 points to 9,591 and the Nifty jumped 25 points to 2,873, at 10:22 am. BSE Midcap and Small Cap indices are up over half a percent.

Bharti Airtel, ONGC, NTPC, DLF, Reliance Communication, ICICI Bank, SBI and HDFC Bank are supporting the markets while Infosys, Wipro, BHEL, TCS, Reliance Industries, ITC and Hero Honda are dragging.

Market breadth is positive; about 1516 shares have advanced while 1441 shares have declined. Nearly 235 shares are unchanged.

Mkt @ 9.56am Nifty bounces back above 2900 on +ve global cues

Positive global cues on anticipation of coordinated rescue effort from the G-20 meeting during the weekend and decline in inflation to single digit, helped the markets to bounce back in opening trade, after Wednesday's dismal trade.

Buying is seen in banking, realty, capital goods, power, metal and telecom stocks.

At 9:57 am, the Sensex rose 204 points to 9,740 and the Nifty gained 64 points at 2,912. CNX Midcap 100  jumped 77 points to 3,738.

ICICI Bank, Suzlon Energy, Reliance Infrastructure, Sterlite Inds, Tata Communication, Tata Steel, Unitech, DLF, Reliance Communication, HDFC Bank, PNB, Wipro, Jaiprakash Associates, Hindalco, Bharti Airtel, ONGC, Reliance Industries and NTPC are gainers.

Tata Teleservices (Maharashtra) jumped 11%, as NTT DoCoMo is going to buy 26% stake in parent company, Tata Teleservices and will make open offer for another 20% stake Tata Tele (Maha).

Inflation for the week-ended November 1 has come in single-digit at 8.98% compared with 10.72% the week earlier.

There are expectations that as the inflation is on downtrend, experts see rate cut in near term.

Yes Bank feels that the week-ended November 1 inflation below 10% has come in sooner than expected. "We see a 50 bps repo rate and 25-50 bps reverse repo rate cut in the near-term. We expect RBI to infuse more liquidity."

Finance Minister sources said that RBI may cut benchmark rates post G-20 meet. They also see more rate action from RBI on inflation plunge.

Asian markets are trading higher. Nikkei and Hang Seng rose 3.5-4%. Shanghai, Taiwan, Jakarta and Straits Times jumped 1-2%. Kospi rose 0.5%.

It is a sea of green across Asian markets after yesterday's slam down that most of these markets experienced. Stephan Davis, CEO of Javelin Wealth Management believes that the overall outlook for the markets, if one takes more than a 24 hour view is pretty grim. The rally seen in Asian markets today is a an outcome of short covering plus a bit of buying interest following rather oversold positions earlier on in the week, said Davis.

US stocks rallied the most in two weeks and bounced back from 5 ½ year low, with the S&P 500 index jumping 6% in the final hour, as investors snapped up the cheapest energy shares on record and real-estate companies gained after CB Richard Ellis raised cash in a share sale. The Dow gained 552.59 points, or 6.67%, to 8,835.25. The S&P 500 index advanced 58.99 points, or 6.92%, to 911.29. The Nasdaq composite index added 97.49 points, or 6.50%, to 1,596.70.

Global markets are anticipating coordinated rescue effort from G-20 meeting during the weekend.

Market cues:

Inflation cools sharply to 8.98%, led primarily by decline in global commodity prices

FIIs net sell USD 66.1 million in equity

MFs net sell Rs 222.2 crore in equity

NSE F&O Open Interest down by Rs 1,233 crore at Rs 48,917 crore

F&O cues:

Futures Open Int down by Rs 1,029 crore, Options Open Int down by Rs 204 crore
 
Nifty Futures shed 12.5 lakh shares in Open Int, at 5-pt discount

Nifty Open Int Put-Call ratio at 1.07 versus 1.16

Nifty Puts shed 20 lakh, Calls add 9.5 lakh shares in Open Int

Nifty 2900 Put sheds 10.6 lakh shares in Open Int

Nifty 2900 Call adds 5.6 lakh shares in Open Int

Nifty 3000 Call adds 3.5 lakh shares in Open Int

Stock Futures Open Int unchanged