Markets remain weak RIL, ITC weigh

The markets continue to languish in the negative terrian on the back of weakness in select energy and FMCG majors. The Sensex is now down 131 points at 18,253.

The NSE Nifty has declined 42 points to 5,478.

Index heavyweight - Reliance, alongwith FMCG major ITC and Steel major Tata Steel - all down 1% each are the prominent draggers on the index.

Maurti, Hero Honda, Reliance Infrastructure and Jaiprakash Associates also continue to trade 1% lower.

However, Hindalco and TCS continue to buck the trend.
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(Updated at 1240 hrs)

Markets continued to languish in red, recovering marginally from the lows. The Sensex touched a low of 18,271 after the IIP data showed a slowdown in industrial production in the month of April. Weak Asian indices also took a toll. The index recovered marginally afterwards and was down 89 points at 18,296. Nifty shed 31 points at 5,490.

According to the IIP data, production at factories, mines and utilities grew an annual 6.3%, lower than an 8.83% annual rise in March. The data released today was the first of a new series with a different base year of 2004-05, new components and weightings.

Asian markets were in the red. Hang Seng shed 0.7% at 22,448. Taiwan Weighted and Seoul Composite slipped 1-2% each. Meanwhile, Nikkei added 0.5% to 9,514.

Most of the sectoral indices, barring consumer durables and IT were in the red. Oil & gas stocks led the loser's list with the index slipping 0.7%. Auto, power and banking stocks were in red. Banking stocks fell on worries that the RBI may raise key rates once again in its mid-quarter policy review on June 16, 2011.

Reliance led the losses among oil & gas stocks - down 1.2% at Rs 942. HPCL, BPCL and IOC, among oil marketing companies, shed 0.5-1.5% each.

The BSE auto index was down 0.6% at 8,608, hitting a two-and-half month low, after domestic auto sales grew at their slowest pace in twenty months in May, 2011. The index has fallen almost 10% compared with a 4% decline in the benchmark index Sensex since May.

Maruti Suzuki slipped 1.7% as the workers strike continued in its Manesar plant. Hero Honda, and Exide Industries dropped around 1% each.

"Lot of unwinding is seen in Maruti Suzuki in the last few trading sessions. The stock should stabilise at the current levels. The strike in one of its plants is an overhang on the stock. Clarity on this front could lead to fresh long positions getting built in this stock," said Shailesh Kadam from PINC Research.

Among other Sensex losers were Tata Steel, Reliance Infra, ITC and Cipla. However, Hindalco, TCS, ONGC and Infosys moved up nearly a per cent each.

BSE market breadth was marginally negative. Out of 2,707 stocks traded, 1,375 declined while 1,13 advanced in trades.