Global cues, monsoon deficit reports drag Nifty below 5400

Indian equity benchmarks slipped to three-week low in the late trade on Thursday post reports that there would be monsoon deficit in the country. However, there was a bit of relief after clarification from Meteorological Department. Even the fall in global markets on Greek's debt problems added more pressure on Indian equities.

The 50-share NSE Nifty tumbled 50.75 points or 0.93%, to close at 5,396.75 and the 30-share BSE Sensex fell 146.36 points or 0.81%, to end at 17,985.88.

According to reports from agencies, Met Department said monsoon rains were 9% below normal in week to June 15. However, Met department denied the same. Dept said monsoon was running 5 days behind schedule across country and there was slight deficit only in a few pockets like West Rajasthan.

Global stocks too fell a three-month low on Greece debt worries. Euro zone officials are struggling to agree on how to involve the private sector in a second Greek bailout without triggering a default that would likely destabilise other euro zone weaklings.

Investors fear mounting political turmoil in Greece, where the Prime Minister plans to form a new cabinet and will seek a vote of confidence from his fractious Socialist party to try to push through an austerity package and avoid default.

European markets like France's CAC, Germany's DAX and Britain's FTSE were down more than 1%. Asian markets too closed 1-2% lower today. US index futures did not see any fall because US markets had fallen more than 1.5% yesterday.

Much awaited event - the RBI credit policy was done today. It worked on the expected lines i.e. central bank hiked repo rate (at which banks borrow money from RBI) and reverse repo rate (at which RBI borrows money from banks) by 25 basis points to 7.5% & 6.5%, respectively, to contain rising inflation.

The RBI, which hiked interest rates for the tenth time in 15 months today, said it will continue with its tight monetary policy as inflation is spreading to the non-food segment also, which is a concern.

"Based on the current and evolving growth and inflation scenario, the Reserve Bank will need to persist with its anti-inflationary stance of monetary policy," the central bank said in its mid-quarter review of credit policy.

Bankers as well as experts feel that there would be more rate hikes going ahead. Chanda Kochhar, MD & CEO, ICICI Bank said that she anticipates another 50-75 bps rate hike in the rest of financial year.

Rajiv Anand, chief executive officer of Axis AMC said that the RBI does not indicate that we are anywhere close to a pause, especially given the fact that headline inflation is at 9%. "In fact, we expect a couple of more hikes and we will also see the transmission of the last 100 bps over the next three-six months," said Anand.

Reliance Industries was the main killer today, with hitting 23-month low. The stock fell early 1.5%. Among other heavyweights, L&T, Wipro and TCS tumbled 2-3%. Infosys and HDFC Bank were down more than 1%.

Ambuja Cements, PNB and IDFC were the major losers on Nifty, with falling 4-5%. SAIL, Tata Steel, Sterlite Industries and JSPL from metals space lost 1-2.5%.

Auto stocks too were under selling pressure on fears that likely rate hike by banks will impact their sales. Maruti Suzuki, Tata Motors, Bajaj Auto and M&M declined 1-2%.

However, SBI and HUL bucked the trend, with gaining more than 1%. ONGC, BHEL, BPCL, Sun Pharma, Reliance Infrastructure and Reliance Capital were other gainers.

Midcaps - Century Textile, DB Realty, SKS Microfinance, Punj Lloyd and Torrent Pharma gained 3.5-6% while IVRCL, TTK Prestige, Anant Raj Inds, Bank of Maharashtra and India Infoline lost 4-5%.

About 2.5 shares declined for every one share advanced on National Stock Exchange.

Total traded turnover was more than Rs 1.36 lakh crore - higher as compared to previous session.

(With inputs from Reuters)

_PAGEBREAK_

Sensex slips below 18K; RIL, TCS, Bharti, L&T tumble

Equity benchmarks extended sell-off on the back of further fall in European markets, reacting to Greek's debt worries. The 50-share Nifty has broken the 5400 mark - at three-week low, dragged down by heavyweights like TCS, Bharti Airtel, Reliance Industries, Infosys, Wipro, L&T and HDFC Bank, which fell 1-3%.

Metal, cement, auto, select healthcare and private banking companies' shares too were adding pressure on the market.

The 50-share NSE Nifty was trading at 5,391, down 56 points and the 30-share BSE Sensex tumbled 172 points to 17,960 on further build up in shorts.

European markets like France's CAC, Germany's DAX and Britain's FTSE fell 1-2%.

Largecaps

TCS, Sterlite Industries, L&T, Wipro, Bharti Airtel, Ambuja Cements, IDFC, PNB and ACC were the top losers, with falling 2-5%.

However, Reliance Infrastructure, HUL, SBI, BHEL, Reliance Communications, BPCL and Reliance Capital were the only top gainers.

Lovable Lingerie, Sun TV Network, SBI, Reliance Industries, Aanjaneya Life and IDFC were the most active shares.

Midcaps

Century, SKS Microfinance, DB Realty, Punj Lloyd and Apollo Tyres gained 3-5%. However, IVRCL, TTK Prestige, Bank of Maharashtra, Anant Raj Inds and India Infoline lost 4-5%.

Sensex sheds over 100 pts on weak European cues

Equity benchmarks were trading lower on the back of weak global cues. However, the RBI policy was a non event for the market because 25 basis points hike in policy rates was in line with the street estimates.

On the global front, European markets were trading 0.6-0.8% lower following sharp fall in US market yesterday on Greece debt problems. Asian markets too closed lower by 1-2%.

However, the Indian market saw enough sell-off in yesterday's trade so they were marginally down. The 30-share BSE Sensex was trading at 18,066, down 66 points and the 50-share NSE Nifty fell 26 points to 5,422.

Selling in heavyweight Reliance Industries weighed on the market though the stock recovered a bit. L&T and HDFC Bank slipped 1% each.

Technology stocks were taking beating today - TCS was the major dragger on Nifty, with falling over 2%. Wipro and HCL Tech lost 1.7% each. Infosys declined nearly 1%.

Commodities too were seeing selling pressure - Sterlite Industries, Tata Steel, SAIL and JSPL plumetted 1-2%. IDFC was the biggest loser, with falling 3.5%.

However, the buying in FMCG, Anil Dhirubhai Ambani group and power companies' shares has limited the downside. SBI was the leading star, with gaining 1.35%.

ONGC, HDFC, ICICI Bank, BPCL and DLF were other gainers.

Central bank Reserve Bank of India hiked repo rate - at which banks borrow money from RBI - and reverse repo rate - at which RBI borrows money from banks - by 25 basis points each to 7.5% & 6.5%, respectively.

But the RBI pointed out that there would be more rate hikes further to contain rising inflation. "Based on the current and evolving growth and inflation scenario, the Reserve Bank will need to persist with its anti-inflationary stance of monetary policy," the central bank said in its mid-quarter review of credit policy.

About two shares declined for every one share advanced.

Nifty slips again, shrugs of RBI move; RIL, TCS drag

Equity benchmarks drifted lower again amid choppy trade - the Nifty inching back to 5400 level - on the back of sell-off in heavyweights Reliance Industries and L&T. Technology, metal, auto, cement and private banking companies' shares were dragging the markets down.

The 30-share BSE Sensex was trading at 18,044, down 88 points and the 50-share NSE Nifty fell 33 points to 5,414.

RBI policy was a non event for the market as 25 basis points hike in key rates was on expected lines. If the market increases rates by 50 basis points, then it would have reacted quite sharply.

Reserve Bank of India has hiked repo (rate at which RBI lends money to banks) and reverse repo (rate at which RBI borrows money from banks) rates by 25 basis points each to 7.5% and 6.5%, respectively. Cash Reserve Ratio was unchanged.

However, experts as well as bankers still feel that there would be more rate hikes to contain inflation. According to Axis AMC, RBI is unlikely to pause rate hikes. It expects a couple of more rate hikes.

Reliance Industries has hit a 23-month low today, falling 1.5% to Rs 887. Among others, TCS, L&T, Infosys and Wipro were down 1-2%.

PNB and IDFC tumbled 2.5% each. HDFC Bank and Axis Bank fell close to 1%.

However, buying continued in SBI, HUL, NTPC, BHEL, HDFC, Bharti Airtel and ONGC, which has limited the downside.

Midcaps

SKS Microfinance, KGN Industries, Torrent Pharma, DB Realty and Punj Lloyd gained 2-4% whereas India Infoline, TTK Prestige, Glodyne Tech, Motherson Sumi and Anant Raj Inds fell 4%.

Nifty recovers on expected rate hikes; SBI, ICICI Bank gain

Indian equity benchmarks showed some recovery post the RBI policy event as hike in key policy rates by 25 basis points was on the expected lines. The market has already been discounted these hikes.

Central bank Reserve Bank of India has hiked repo (rate at which RBI lends money to banks) and reverse repo (rate at which RBI borrows money from banks) rates by 25 basis points each - on expected lines - to 7.5% and 6.5%, respectively. Cash Reserve Ratio was unchanged.

However, experts as well as bankers still feel that there would be more rate hikes to contain inflation. According to Axis AMC, RBI is unlikely to pause rate hikes. It expects a couple of more rate hikes.

PMEAC Chairman C Rangarajan too said RBI would continue with policy tightening.

RBI in its policy report said, "Challenge to contain inflation persists and some short-term deceleration in growth is unavoidable." Apr-May inflation numbers may be revised upwards, says RBI.

The 30-share BSE Sensex was trading at 18,096, down 35 points and the 50-share NSE Nifty fell 16 points to 5,431.

Leading banks stocks namely SBI and ICICI Bank were up by 1.8% & 1%, respectively. NTPC, HUL, HDFC and BHEL gained 1-1.5%. ONGC, ITC and Bharti Airtel were marginally in the green.

However, continued selling in heavyweights like Reliance Industries, Infosys, TCS, Wipro and L&T has limited the recovery; these stocks were down 1-1.5%.

Sterlite, Bajaj Auto, PNB, IDFC, Ambuja Cements, Maruti and ACC lost 1-2%.

Midcaps

SKS Microfinance, KGN Industries, DB Realty, Punj Lloyd and Torrent Pharma rallied 2.5-4% while Anant Raj Inds, India Infoline, Coromandel International, HMT and TTK Prestige lost 3-4%.

Market breadth was negative - about 428 shares advanced as against 817 shares declined on National Stock Exchange.

Nifty trades lower amid volatility; metals, autos down

Indian equity benchmarks were trading lower ahead of credit policy event today, wherein consensus estimate is 25 basis points hike in repo rate by RBI.

Leif Eskesen, chief economist for AESAN and India, HSBC said there is slight possibility of a 50 bps rate hike. "RBI will not be concerned with growth moderation," he said adding, "The growth in India to pick up in the second half of the year." He said a 25 bps hike seems already discounted in the market.

Fall in global markets on the back of Greek debt problems and disappointing US economic data has weighed on the Indian equities as well. Asian markets were down in the range of 1-2%. US equity markets lost more than 1.5% yesterday.

The 50-share NSE Nifty managed to hold the 5400 level as it was about to break the same level in opening trade. The Index was trading at 5,417, down 31 points and the 30-share BSE Sensex fell 79 points to 18,054 amid a bit of volatility at 10:35 hours.

Technology stocks were taking beating today - TCS, Wipro and Infosys were among top five leading dragger on Nifty, with falling 1-1.5%.

Heavyweights Reliance Industries and L&T too fell about 1%. Rate sensitives like DLF, Axis Bank, PNB, IDFC, Bajaj Auto and M&M were down 1-2%.

Maruti Sukuki continued to fall, lost more than 2% as two lakh workers will go on hunger strike on June 17.

Sterlite Industries, Jindal Steel, SAIL, Sesa Goa, Hindalco and Tata Steel from metal space declined 0.5-1%.

However, buygin in heavyweights namely NTPC, HUL, ONGC, SBI, BHEL and ITC has capped the losses.

Market breadth was in favour of declines - about 349 shares advanced as against 824 shares declined on National Stock Exchange.

Nifty drifting down to 5400 ahead of RBI policy

Equity benchmarks tumbled more than half a percent in the opening trade following fall in global markets, reacting to Greek debt problems. Greece's prime minister offered to quit and make way for a national unity government.

Another worry for the market is likely hike in repo rates today by the RBI in its policy meeting. The Nifty still holds the 5400 level.

Though a 25 basis points hike is in the cards, PN Vijay, Portfolio Manager, www.askpnvijay.com is optimistic that the tone is unlikely to be hawkish.

Vijay warns that ugly surprises from Southern Europe may lead to a global spin-off which might see India drudging down. He elaborates that even a small selling pressure can bring the market down. He does not see any major move till the first quarter results come out.

Among frontliners, PNB, Axis Bank, IDFC, Kotak Mahindra Bank, SBI, Maruti Suzuki, Reliance Industries, SAIL, JSPL, Ambuja Cements, DLF, Tata Motors and L&T were putting selling pressure.

However, ONGC and HUL were only on buyers' radar.

The 50-share NSE Nifty was trading at 5,416, down 30 points and the 30-share BSE Sensex fell 87 points to 18,045.

The CNX Midcao Index lost 63 points to 7,964 and Nifty Junior slipped 73 points to 11,156. About 132 shares advanced as against 639 shares declined on National Stock Exchange.

Midcap & Smallcap space:

IRB Infra, IVRCL Infra and Lanco Infratech fell 1-2%.

Firstsource was down 1% and Rolta down 2%.

DCB and Bank of Maharashtra were down 2-4%.

However, Ashok Leyland rallied 3% on 1-for-1 bonus issue.

Dabur bounced back with 1% gains. Coal India, Omax and Apollo Tyres too gained.

Global cues:

The US equity markets tumbled to a new three-month low on Wednesday post renewed concerns that Greece will default and poor US economic data.

Greece's prime minister offered to quit and make way for a national unity government; emergency session fails to get any solution.

Euro slid 1.8% against the dollar at USD 1.417, worst daily losses in months.

S&P 500 is close to its 200-DMA. It went down about 8% from the three-year high that it set in May.

The Dow Jones Industrial Average fell 178.84 points or 1.48%, to close at 11,897.27. NASDAQ Composite slipped 47.26 points or 1.76%, to end at 2,631.46 and S&P 500 Index lost 22.45 points or 1.74%, to close at 1,265.42.

Commodities

July crude oil contract slid 4.6% at USD 94.81/barrel, worst levels since February 22

July natural gas contract was down 0.4% at USD 4.58 mmbtu

August gold contract was up 0.1% at USD 1526.4/ounce

July silver contract went down 0.4% at USD 35.28/ounce

F&O cues:

-Total Futures Open Interest was up by Rs 168 crore
-Total Options Open Interest up by Rs 384 crore
-Total Stock Futures added 1.65 crore shares in open interest
-Nifty Futures add 3.90 lakh shares in open interest
-Nifty Futures ended at 3.10 points premium versus 15.3 points
-Nifty Open Interest PCR was down at 1.19 versus 1.28
-Total Put shed 24.35 lakh shares in open interest,
-Total Call add 24.44 lakh shares in open interest
-Open Interest outstanding at 5400 Put, 5600 Call and 5300 Put
-Nifty 5500 Call adds 15.1 lakh shares in open interest
-Nifty 5600 Call adds 5.44 lakh shares in open interest
-Nifty 5400 Call adds 5.37 lakh shares in open interest
-Nifty 5200 Put adds 4.27 lakh shares in open interest
-Nifty July 5200 Put adds 2.64 lakh shares in open interest
-Nifty 5500 Put sheds 16.26 lakh shares in open interest
-Nifty 5600 Put sheds 7.55 lakh shares in open interest
-Nifty 5400 Put sheds 6.8 lakh shares in open interest
-Nifty 5700 Call sheds 4.09 lakh shares in open interest
-Nifty 5800 Call sheds 2.90 lakh shares in open interest
-India VIX up 3.4% at 19.14