|
| Markets trade marginally lower, oil & gas shares weigh |
| SI Reporter / Mumbai May 17, 2011, 10:45 IST |
|
Markets opened flat and continued to trade on a subdued note due weak global cues and lack of any strong directional cues. The Nifty was down 13 points, at 5,487 and the Sensex dipped 31 points, at 18,316.
Oil & Gas shares were leading the losses on concerns that upstream oil companies may have to bear the subsidy burden of Rs 30,000 crore according to television reports as government increased upstream subsidy sharing to 38.5% of the total burde (Rs 75,000 crore) for FY11. The BSE oil & gas index was down 2.2% with ONGC falling over 5% as the new subsidy sharing formual may affect the profitability and plans of follow on public offer.
-----------------------Updated at 9:30 hrs
Markets opened on a subdued note due to lack of any strong trigger and weak global cues. The S&P CNX Nifty was up 2 points, at 5,501 and the Sensex was up 23 points, at 18,365.
Foreign Institutional Investors have turned Jittery as they have been net sellers of $1.6 billion (Rs 7220 crore) since March 25 according to the Bombay Stock Exchnage due to high inflation and hawkish stance of the central Bank. Technical analysts expect further downside for the markets as the Nifty has formed a bear flag pattern on technical charts resembling an inverted flag on a pole, the decline has strong volume and consistent downward price movement.
Edelweiss in the morning note said, “The bear flag continuation pattern is still in play as we look for an eventual break down of last week’s range trade. The momentum oscillators have again rolled bearish.” Edelweiss expects markets to take support at 5370-5350 levels.
Across Asia, markets were trading mostly lower amid signs of a slowdown in the United States which dragged the global stocks and oil prices lower.
Japan's benchmark Nikkei average was down 0.4% over concerns of compensation pay out at the nuclear power plant and losses in auto shares. Hong Kong's Hang Seng fell 0.4% led by losses in resource shares. China's Shanghai Composite index slipped 0.2%.
Among individual stocks State Bank of India was on investors’ radar ahead of quarterly results, according to Reuters poll profit is expected to rise 63% y-o-y.
BSE Consumer Durables was the top sectoral gainer on expectations that good monsoon may boost demand in Tier II and Tier III cities; the index was up 1.5%. Titan Industries rallied 2.3%, Rajesh Exports zoomed 2% and VIP Industries was up 1.4%.
The broader markets were trading marginally higher, midcap and smallcap indices were up 0.4% each. Market breadth was positive, 1149 stocks advanced for 719 stocks which declined.
|
|
|
|
|
|
|
|
|
|
 Read Business news in |  |
|
|
|
|
|
|
Advertisements |
|
|
|
|
|
|
|
|
|
|
Content Guide
