Nifty struggles at 5500; broader markets down 1%

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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.

At 9:19 hours IST : Nifty flat amid choppy trade; Bharti, Sterlite down

The Nifty was subdued in an early trade, opening below the 5500 level amid volatility. Consistent inflow of foreign money has been supporting the market whereas on other side, concerns like rising oil prices, disappointing economic data from major continents like US & Europe still weighed on the market.

Metals, capital goods and power stocks were down while FMCG, technology and HDFC group companies' shares were on buyers' radar.

The Sensex was down 44.34 points to 18,100.91 and the Nifty fell 18 points to 5,487.50. Asian markets were down on lacklustre economic data from US and Europe. Hang Seng, Straits Times, Kospi and Taiwan Weighted fell 0.5-1%.

In the largecap space, DLF gained 2% as the company is going to sell 350 flats for Rs 500 crore in Gurgaon.

SBI rebounded with 2% gains after clarification on Kingfisher news.

Ranbaxy Labs rose 1.5% ahead of quarterly numbers today.

Among others, TCS, Infosys, ITC,  HDFC, Wipro and Tata Motors were supporting the market.

However, Bharti Airtel fell 3.5% post Econet sought USD 3 billion damages from the company.

Sterlite, Tata Steel, Hindalco, Jindal Steel, Sesa Goa, Coal India, L&T, BHEL, Maruti, M&M and ICICI Bank were under pressure.

The broader markets were flat and even the breadth was neutral.

Among the second line shares, Kingfisher Airlines fell over 1% as I-T department continued to freeze company's accounts. Also, SBI said it has not given any fresh loans to Kingfisher.

UCO Bank, Dena Bank and LIC Housing Finance were down 1-2%.

However, Alfa Laval shot up 15% after its delisting offer received strong response.

ABB rose 3.5% ahead of quarterly numbers.

Voltas, Shree Renuka, Alok Industries and Dish TV gained 1-2%.