Sensex trades lower on weak European cues; heavyweights dip

At 13:28 hours IST - the Nifty was witnessing selling pressure amid volatility. Telecom and realty stocks were supporting the markets along with Infosys and L&T. However, selling continued in oil & gas exploration, banking, power, metal, FMCG and select cement stocks. BHEL and HDFC were other losers in trade.

On the global front, Shanghai dipped 3.45% as Morgan Stanley said monetary conditions remained very loose in China and does not expect aggressive government tightening until 2011. It sees asset price appreciation in China to continue. Among other Asian markets, Hang Seng was down 1.5% and Nikkei down 1%. Straits Times, Jakarta and Kospi fell 0.4-0.8%. However, Taiwan Weighted gained 0.4%.

European markets opened one percent lower.

The Sensex slipped 68 points to 17,111 and the Nifty declined 24 points to 5,079. The Nifty November future was trading in discount while December future was trading with 8 points premium.

The market breadth was marginally negative; about 1,381 shares advanced while 1,445 shares declined on the BSE. Nearly 607 shares were unchanged. The broader indices were flat.

In the largecap space, Mahindra & Mahindra topped the list with 3% gain. Next on the list were Matuti Suzuki, Hero Honda, Bharti Airtel and Tata Motors up more than 2% each. However, IDFC, Jindal Steel, Reliance Infra, ITC and Sterlite Industries were down 2-3%.

Reliance Industries, ONGC, ICICI Bank, ITC, HDFC, TCS and SBI were major draggers.

Newly listed Den Networks was quoting at Rs 150.75, down Rs 44.25, or 22.69% as against issue price of Rs 195.

Top gainers on the BSE Midcap: Gujarat Flourochem, Max India, Videocon Industries, Bajaj Hindusthan and Balrampur Chini were up 5-9%.

Top losers on the BSE Midcap: KGN Industries, GMDC, Sobha Develpoers, National Fertilisers and Exide Industries were down 4-5%.

Top gainers on the BSE Smallcap: Grindwell Norton, Tata Coffee, JMC Projects, Esab India and Eveready Industries were up 8-20%.

Top losers on the BSE Smallcap:,Sanwaria Agro, Cambridge Solution, Tata Sponge Iron, SpiceJet and Lloyds Metals were down 4-8%.

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