Sensex snaps 5-day winning streak, closes 85 pts down

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The market snapped five-day winning streak on Tuesday, weighed down by capital goods, metals, auto stocks and heavyweights Bharti, Infosys & SBI. However, buying in oil & gas and private banks limited the downside. The Nifty closed below the 5350 level, falling 26.5 points to 5,335.15. Meanwhile, the Sensex dropped 85.11 points, to close at 17,622.20.

Devangshu Datta, Consulting Editor at Outlook feels the market is not likely to drop below 5300. "If it stays above 200 DMA (5225) there is no real cause for immediate concern," he says.

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Even European markets were down with moderate gains as Greece missed another deadline for debt deal yesterday. Adrian Foster of Rabobank doesn't think there will be a very tidy conclusion to the Greek situation soon.

According to him, liquidity is going to continue to be a positive backdrop for equity markets, for risky assets around the world.

Shares of BHEL topped the selling list in late trade, falling 4.2%. Among major largecaps, Infosys, HDFC, Bharti Airtel and L&T were down 2-2.5%.

Metals stocks saw some profit booking as the respective index shot up over 27% since January. Tata Steel tanked 3.3% and Sterlite fell 2.4%. Hindalco, Coal India and Jindal Steel slipped around 0.5%.

Shares of M&M lost nearly 3% after less than expected bottomline in third quarter of FY12. The company posted net profit of Rs 662 crore while analysts expected at Rs 662 crore.

Among banks, SBI dropped over 0.5% while private banks played a supportive role. ICICI Bank and HDFC Bank were up 1% & 0.6%, respectively.

However, Cigarette major ITC rose 1.4% as the company is going to enter chocolate, tea & coffee categories.

Oil & gas (oil producers) stocks helped the market very nicely; Cairn India rallied 2.5%. Reliance Industries and ONGC climbed over a percent after Brent crude hit a six-month high of USD 116.5 a barrel yesterday.

Economic data : Advance gross domestic product (GDP) for financial year 2011-12 came in at 6.9% as against 8.4% in the previous year, which was lower than expected. CNBC-TV18 poll saw it at 7.1%.

During the year, growth in construction, manufacturing and agriculture was lower as compared to previous year. However, mining growth was in negative due to ban in some major mines in 2011.

In the second line shares, Kingfisher Airlines, Jet Airways and SpiceJet shot up 11-14.5% after empowered group of ministers approved direct import of aviation turbine fuel by airline companies.

Mangalam Cement surged 14% after third quarter results. However, NCC tanked 14.5% after company reported a consolidated loss of Rs 10.3 crore in Q3 versus profit of Rs 52 crore YoY.

Manappuram Finance was locked at 20% lower circuit after RBI says, company is not permitted to accept/renew deposits from public.

The market breadth was negative; about 1231 shares advanced while 1646 shares declined on the BSE.