Markets fall on profit-booking; Automakers slump

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Markets dropped on Tuesday as investors booked profits in automobile and realty shares after benchmark indices touched 1-month high yesterday.

Shares of automobiles companies are trading lower by up to 2% after reporting lower sales numbers in June due to slow down in demand.

At 11:20AM, the 30-share Sensex dropped 32  points at 19,545 and the 50-share Nifty declined 15 points at 5,880 levels.

Asian stocks rose for a fifth day, the longest winning streak since April, and U.S. futures advanced on signs the global economy is improving.

Nikkei gained 1.3% to 14,044, Singapore Straits Times rose 1% to 3,171, China’s Shanghai Composite index was down 0.3% at 1,988 while Hong Kong’s Hang Seng was flat at 20,808 today.

Back home, the key sectoral losers were capital goods, realty,auto, power while healthcare, metal indices gained on the BSE.

The gainers included counters such as Bharti Airtel rising 3%, Sterlite Industries gained 2.7%, Sun Pharma rose 2.2% while Tata Steel was up 1.5% on the BSE.

The laggards were Jindal Steel fell 2.3%, Tata Motors declined 1.6%, BHEL fell 1.5%, Tata Power dropped 1.5% while Hero MotoCorp shed 1.4% on the BSE.

The key notable movers included counters such Hindustan Copper which is trading lower by 2% at Rs 76.20 ahead of the Empowered Group of Ministers' (EGoM) on disinvestment meeting today to decide on the base price for government stake sale in the company.

Jet Airways has dipped nearly 6% to Rs 438 in opening deals on reports that Prime Minister’s Office (PMO) has asked the cabinet secretary to submit a report on the security concerns related to Abu Dhabi-based Etihad Airways PJSC.

The broader markets traded mixed with mid-caps falling 0.03 per cent and small-caps rising 0.03 per cent on the BSE.

The market breadth was negative. Out of 1,792 stocks traded so far, 867 stocks declined while 833 advanced on the BSE.