Sensex slips below 16000; SBI crashes post Moody's report

Indian equity benchmarks broke the psychological levels of Sensex (16000) and Nifty (4800) post 2.5% fall in European markets in the opening trade. A 4% fall in SBI scrip following a standalone rating to D+ from C- by Moody's added pressure on the market. The 30-share BSE Sensex fell 173 points to 15,978.61 and the 50-share NSE Nifty lost 50.55 points to 4,798.95.

Heavyweight Reliance Industries was playing a key role in today's volatility; the stock slipped 1.5% again after showing green tick.

Infosys, Bharti Airtel, ICICI Bank, HDFC Bank and Axis Bank were down 1.6-2.4%. Among others, Tata Motors, JSPL and M&M plunged 3-5%.

However, BHEL and L&T too slipped from day's high - both gained more than 1%. Maruti Suzuki, Grasim and Ranbaxy climbed 1-2%. 

Market breadth was mixed; about 1202 shares advanced as against 1293 shares declined on BSE.

At 11:49 hours IST : Nifty in narrow range; RIL, SBI, L&T, JSW Steel most active

The benchmark Nifty was trading in a narrow range of 4840-4865. The market seems to have priced in all negatives and is waiting for some triggers. Possibly earnings or clarity on European debt crisis may move the market either ways. The 30-share BSE Sensex rose 17 points to 16,168.47 and the 50-share NSE Nifty moved up 10 points to 4,859.30.

Among the frontliners, Jaiprakash Associates, L&T, Maruti Suzuki, Tata Steel, Hindalco, IDFC and BHEL rallied 1.5-3%.

However, Tata Motors, Cairn India, M&M, HCL Tech, Jindal Steel, HDFC Bank and Infosys were down 1-2.8%.

Reliance Industries, SBI, L&T, JSW Steel and Tata Steel were most active shares on exchanges.

In the midcap space, Chambal Fertiliser, National Fertiliser, Stride Arcolab, IFCI and Kirloskar Oil gained 3-4%. However, Network 18, Jubilant Foodworks, Shree Global, SKS Microfinance and KGN Industries fell 5-7%.

In the smallcap space, Parrys Sugar, NDTV, Asian Star, PSL and Siyaram Silk were up 5-6% while Modern India, PVR, Prabhav Industries, Clarus Finance and R M Mohite lost 5-7.5%.

About 1213 shares advanced as against 1009 shares declined on BSE.

At 10:19 hours IST : Sensex directionless; L&T, BHEL, Maruti, JP Associates jump

Indian equity benchmarks were hovering around their previous closing values. Capital goods, power, metals and Anil Dhirubhai Ambani Group's stocks were witnessing buying interest. However, the sell-off in Infosys, Reliance Industries, Bharti, TCS, HDFC and HDFC Bank has limited the upside. The 30-share BSE Sensex was trading at 16154.92, up just 3.47 points and the 50-share NSE Nifty rose 5.65 points to 4,855.15.

Rajat Rajgarhia, head of research at Motilal Oswal Securities said, the market have factored in all the negatives right now. The current level of 16,000 is quite good enough for the market to sustain, he added.

From the capital goods space, L&T and BHEL rallied 1.5-2%. Jaipraksh Associates shot up 3%.

Maruti Suzuki gained 2% as workers