Sensex trades lower on weak European cues; heavyweights dip

ALSO READ See Key Market Stats - Top Gainers/ Losers, Most Actives, Highs/Lows See how Global Markets are trading Indian ADRs Nifty BSE | NSE 31/05/12 Are Mutual Funds betting on Nifty?

Nifty hovers around 5100; auto, telecom, realty, SBI up

At 11:01 hours IST, the Nifty was consolidating at its previous closing value as traders looked cautious post two-day rally. Shares of telecom, realty, auto and oil marketing companies were seeing buying interest, which capped the losses to some extent. SBI, Cipla and Wipro were the other gainers.

However, oil & gas exploration, private banking, FMCG, power, capital goods and select metal stocks were witnessing selling pressure.

The Sensex was up just 2 points at 17,182 while the Nifty fell 1 point to 5,102. The Nifty November future was trading with 4-5 points discount.

In the telecom space, Tata Communications and Bharti Airtel gained 2-2.5%. MTNL and Reliance Communications were up 1.4-1.8%. Idea Cellular was up 0.61% and Tata Teleservices up 0.38%.

Maruti Suzuki rose 3.5%. M&M, Hero Honda, Tata Motors and Bajaj Auto went up 1.5-2.8% in the auto space. Ashok Leyland was up 0.76%.

In the realty pack, Peninsula Land, Parsvnath and Omaxe were up 2-4.6%. Unitech, DLF, HDIL, Orbit Corporation, Mahindra Life, Ansal Properties and Indiabulls Real moved up 0.8-1.5%. The Department of Industrial Policy and Promotion (DIPP) has proposed the removal of the three-year lock-in for foreign direct investment (FDI) in realty, sources told CNBC-TV18.

Sandeep Bhatia, ED and Head of Sales of Kotak Institutional Equities expected consolidation in telecom space by 2010-end. He said ITC could outperform in short-term while the stock could see some headwinds around budget time. He also expected banks to report good growth in H2.

The market breadth was positive; about 1,653 shares advanced while 1,137 shares declined on the BSE. Nearly 643 shares were unchanged.

In the midcap space, Gujarat Flourochem, Videocon Industries, Piramal Health, Peninsula Land and Carborundum gained 4.5-6.5% while KGN Industries, Asian Star, GMDC, SKF India and Exide Industries slipped 2-5%.

In the smallcap space, Grindwell Norton shot up 20%. Tata Coffee, Hikal, Geodesic and Voltamp Transformers were up 7-13%. However, Lloyds Metals, Cambridge Solutions, MVL and Tata Sponge Iron declined 3.6-4%.

On the global front, Asian markets were mixed in trade. Shanghai and Taiwan Weighted were marginally in the green. However, Nikkei and Kospi declined 0.9% each. Hang Seng, Jakarta and Straits Times were modestly in the red.

Sensex consolidates after two-day rally; realty gains

The Sensex started the day on a flat note with negative bias. It was seeing consolidation after two days of rally. Oil & gas exploration, private banking, cement and select power stocks were under pressure while realty, auto, telecom and pharma stocks were witnessing buying interest.

At 9:56 am, the Sensex fell 8 points to 5,095 and the Sensex slipped 25 points to 17,152. However, the CNX Midcap was up 11 points at 7,204. About 464 shares advanced while 307 shares declined on the NSE. 

Among the frontliners, IDFC, ICICI Bank, HDFC Bank, HDFC, ACC, Sterlite Industries, Hindalco, Reliance Industries, Power Grid, L&T, HDFC and Grasim were seeing selling pressure.

However, Unitech, Wipro, Cipla, Maruti, Hero Honda, Bharti Airtel, Sun Pharma, Ranbaxy Labs, BPCL and DLF were the gainers in the early trade.

Den Networks lost 17% to Rs 160 as against its issue price of Rs 195 per share.

Midcap space:

Vishal Retail fell 3.5% and GMDC lost 2%.

However, IVR Prime was up 5%; Mahindra Forgings was up 6.4% and NIIT Tech was up 1.5%.

Bajaj Hindusthan, Balrampur Chini, Shree Renuka Sugars and Triveni Engg were flat in trade.

Global Cues:

Asian markets were trading mixed. Hang Seng, Nikkei, Jakarta and Kospi slipped 0.5-1%. Straits Times was down 0.1%. However, Taiwan Weighted and Shanghai were marginally in the green.

The US markets gained after existing home sales strongest in 2 1/2 years and dollar index was down 0.7%.

The Dow Jones Industrial Average ended up 133 points or 1.3% at 10,451, which came off 45 points from day's high of 10,495.

The Nasdaq Composite ended up 30 points or 1.4% at 2,176, which came off 14 points from day's high of 2,190. The S&P 500 Index ended up 15 points or 1.36% at 1,106, which came off 6 points from day's high of 1,112.

US existing home sales jumped 10.1% in October, strongest in 2 1/2 years (market expected 2.3%).

Commodities

Reuters CRB Index was up 1.5%.

Crude oil was up 0.2% at $77.56/bbl, which hit $79.92 during the day.

Gold was up 1.5% at $1164/ounce after hitting a new record at $1,173.5/ounce.

Copper rose 2% at $6950/tonne, at 14-month high.

Lead was up 1.8% & Zinc up 1%.

Baltic Dry Index fell 1.8%.

Market cues:

-FIIs net sell USD 27 million on November 20
-Total F&O Open Interest up by Rs 1963 crore at Rs 1,14,957 crore
-FIIs net sell Rs 168 crore in Cash on November 23 (prov)
-DIIs net buy Rs 132 crore in Cash on November 23 ( prov)
-FIIs net buy Rs 394 crore in F&O on November 23

F&O cues:

-Total Futures Open Int up by Rs 1087 crore
-Total Options Open Int up by Rs 876 crore
-Nifty up 1%, Futures Open Int up 1%
-Nifty Dec Futures trading at 14-pt premium
-Nifty IVs at 23-26%
-Nifty Open Int PCR at 1.65 versus 1.57
-Nifty Calls shed 10 lakh shares in Open Int
-Nifty Puts add 22 lakh shares in Open Int
-Nifty Nov 5000 Put adds 10.2 lakh shares in Open Int
-Nifty Nov 5100 Put adds 4.5 lakh shares in Open Int
-Nifty Nov 5200 Put adds 3.8 lakh shares in Open Int
-Nifty Nov 5000 Call sheds 8 lakh shares in Open Int
-Stock Futures add 1.2 cr shares in Open Interest