Market rally loses steam

The markets have pared some of their gains as the European markets have opened in the red. FTSE, DAX and CAC have lost 0.5% each due to continuing worries about the health of the global economy. However on the Asian front, Nikkei remains static at 9,240, up 0.8% while Hang Seng has lost 0.3% at 21,054. The Sensex is at 18,129 up 80 points and the Nifty has gained 26 points at 5,441.

Among the sectoral indices, FMCG up 1% leads the pack while the earlier mover Realty, down 0.1%, has slipped into the red to accompany Capital Goods and Consumer Durables. In the FMCG index, Godrej Consumers up 2.5%, Mcleod Russel & ITC gaining 1.4%, HUL adding 1% are the major movers on the BSE. The auto index up 0.9% and Metal index gaining 0.7% are the other major gainers on the sectoral charts.

The smallcap index and the midcap index have surrendered some of their intial gains. However, they are in a better position compared to the benchmark index. The smallcap is up 0.7% and the midcap index is up 0.6%, compared to the 0.4% increase on the Sensex.

On the Sensex-30, the major gainers are Tata Motors up 3% followed by HDFC Bank, Hindalco, ONGC and HDFC up 2% each.

The losers on the Sensex are SBI down nearly 2% followed by Reliance Communications,Bharti Airtel and Mahindra & Mahindra while market heavyweight RIL has shed 0.8% at Rs 962.

Market breadth positive as 1672 stocks advance and 1203 declines.