Markets erase early gains on HDFC numbers

Markets erased early gains, ending in the red today as HDFC announced its quarterly results.

Sensex touched a high of 18,167 on opening as investors bought realty and banking stocks. However, the index started slipping as market heavyweight, Reliance, pared gains. Markets remained lacklustre through the day.

The index slumped sharply in the last few minutes of trade as HDFC declared its quarterly numbers. The Sensex touched an intra-day low of 17,897 - down 270 points from the day's high. The index finally ended below the 18K mark at 17,938 - down 48 points.

The Nifty ended at 5,386 - down 15 points.

Inflation also grew in June. Wholesale price-based inflation inched higher to 10.55% in June, owing to the pass through effect of the June 25 hike in prices of petroleum products.

BSE capital goods index jumped 1% to 15,075. However, most other indices dropped in the red, led by IT stocks. IT index slipped 1.3% to 5,325. Metal, oil and healthcare indices also ended in red.

Markets in Asia had a good day. The Nikkei surged 2.7% to 9,795. Seoul Composite and the Taiwan Weighted added 1.5% each.

HDFC announced its numbers for quarter ended June 30, 2010. The country's largest mortgage lender Housing Development and Finance Corporation (HDFC) reported a 23% growth in net profit to Rs 694.59 crore for the first quarter ended June 30, 2010. The stock ended flat at Rs 3,078. Earlier in the day, the stock had touched its highest in 52-weeks at Rs 3,319.

Mahindra & Mahindra slipped 2.5% to Rs 616. Maruti Suzuki dropped 1% to Rs 1,394. Tata Motors was down marginally at Rs 799.

IT stocks were down following Infy's numbers yesterday. Infosys dropped 2% to Rs 2,742. Wipro shed 2% at Rs 397.

ACC, Sterlite and Cipla were down 1.7% each. ONGC, Reliance Communications, ICICI Bank and Hindustan Unilever were also in red.

Larsen & Toubro gained to a new 52-week high and ended at Rs 1,883- up 2.5%.

SBI jumped 1.5% to Rs 2,464. HDFC Bank added 1% to Rs 2,088 ahead of its numbers.

DLF and Hero Honda were the other gainers.

BSE market breadth was fairly negative. Out of 3,043 stocks traded, 1,657 declined while 1,261 advanced.

VALUE & VOLUME TOPPERS...

SBI topped the value chart with a turnover of Rs 102.44 cr, followed by Tata Steel (Rs 92.43 cr), Larsen & Toubro (Rs 91.02 cr), DLF (Rs 82.03 cr) and Unitech (Rs 76.17 cr).

FCS led the volume chart with trades of over 34 million shares, followed by Unitech (9.06 million), RNRL (8.62 million) and IFCI (6.39 million).