Markets trade near day's low, RIL slips over 1%

Markets were trading near the day’s low after a firm morning session due selling pressure frontline heavyweight Reliance Industries, HDFC and Tata Motors.

The S&P CNX opened on a firm note at 5,565 and touched a high of 5605 in the opening trades led by short covering and rally in Reliance Industries ahead of its 37th AGM (Annual General Meeting). But as the AGM turned out into a damp squid, the Nifty surrendered its morning gains to toe the line of the Asian counterparts, which were largely lower since morning. The S&P CNX Nifty was trading near the day’s low at 5523, down 27 points and the benchmark Sensex declined 82 points, 18,411.

Nifty was unable to cross the 50 Daily Moving Average of 5640 but analysts expect a short term bounce back in the near term as technical indicators were oversold.

Reliance Industries dragged the Sensex down by 27 points. The stock declined 1.2% to Rs 940 due to absence of any major announcement by the Chairman Mukesh Ambani at AGM whichy disappointed the investors.

Markets across Asia were reeling under pressure ahead of the US non-farm payrolls data for May. Fresh signs in the past week that US economy has hit a soft patch have led economists to expect a poor job’s data.

Japan's Nikkei Stock Average gave up early gains and ended at 0.7% at 9,492.21, dragged by exporters due to strengthening Yen. Hong Kong's Hang Seng also lost ground, ending down 0.5, hit by Chinese banking shares on concerns of monetary tightening in China over the three day weekend as Beijing has previously raised rates during the holiday weekend. However, China's Shanghai Composite index rose 0.5%.

Back in India stocks which were hit by the telecom probe news yesterday rebounded. The Sun TV network was up 4% and Spicejet rallied 2.6% after owner Kalanithi Maran denied involvement in allegations of rigging of the sale of the telecom licenses.Also Reliance ADAG (Anil Dhirubhai Ambani Group) stocks bounced back after a plea was dismissed by a Delhi Court for making Anil

Ambani, Chairman of Reliance ADAG group, one of the accused in the 2G spectrum scam case. Reliance Communication gained 4% at Rs 93 and Reliance Infrastructure added 1.1% at Rs 559. The market breadth was negative. Out of 2876 stocks traded on the BSE, 1,330 stocks advanced, while 1,414 stocks declined.