Markets extend losing streak led by financials

Sensex slips for the eight straight session

Markets ended lower on Monday with the Sensex continuing its losing streak for the eight straight session weighed down by profit taking in ITC and select financial shares. The Sensex closed down 24 points at 19,460 and the Nifty gave off six points to end at 5,898.

Meanwhile, in the broader markets, the smallcap indices underperformed losing 0.35% while the midcap and the Sensex lost 0.2% each.

Equity trading volume was lower than average with markets in Japan, China, Hong Kong, South Korea, Taiwan, Vietnam, Singapore and Malaysia closed for public holidays.

Meanwhile, European markets were largely in the green ahead of the finance chiefs meeting in Brussels today to discuss aid to Cyprus and Greece as a tightening election contest in Italy and corruption allegations in Spain disrupt market calm. CAC, DAX and FTSE was up 0.1-0.5%.

Among the sectoral indices, Oil & Gas, FMCG, IT and Capital Goods closed in the negative, down 0.2-0.9%. On the other hand, Realty, Health Care, Power, Bankex and Consumer Durables gained 0.2-0.8% in today's trade.

The top gainers among the Sensex stocks were Cipla up nearly 4% on reports that the company has postponed plans to acquire a South African firm on account of high valuations.

The other notable gainers were Dr Reddys Lab, Hindalco, Sterlite, Hindustan Unilever, Tata Motors and HDFC Bank up 1-2%.

Among the losers were Maruti Suzuki, ONGC, Jindal Steel, Bharti Airtel, HDFC, L&T and ITC down 1-2%. Hero MotoCorp, ICICI Bank, TCS, Gail India and BHEL down 0.5-0.8% were the other notable losers.

Shares of select PSU companies having government holding more than 75% rallied up to 15% on back of heavy volumes after offer-for-sales of Oil India and NTPC got strong response from the overseas investors.

MMTC surged 19%, State Trading Corporation of India soared 20%, Hindustan Copper, HMT, National Fertilisers, RCF and Dredging Corporation of India were trading higher by 3-12%.

Among other stocks, Cochin Minerals and Rutile was locked in lower circuit of 20% at Rs 230 after its net profit for the quarter ended December 31, 2012 almost halved to Rs 9.55 crore due to lower operational income and higher raw material cost.

SKS Microfinance was locked in upper circuit of 10% at Rs 146 after the company said it concluded two highest rated microfinance securitization transactions aggregating to Rs 390 crore.

Gillette India tanked 5% after the company said it is taking steps to increase its public shareholding to 25%, as directed by the market regulator Securities and Exchange Board of India.

Cadila Healthcare dipped 6%, extending its previous day’s 3% fall, on reported 31% year-on-year drop in consolidated net profit at Rs 103 crore for the quarter ended December 31, 2012 due to higher tax outgo and raw material cost.

Hexaware Technologies closed higher by 3% after IT consulting and software firm reported a better-than-expected consolidated net profit of Rs 66 crore against an average analyst estimates of Rs 61 crore for the fourth quarter ended December 31, 2012.

The market breadth was marginally negative on the BSE. 854 stocks declined while 832 stocks advanced.