Markets trim early losses

Cable stocks slump 2-4%

Markets trimmed some of the early losses as gains in FMCG and capital goods shares helped offset some of the losses from index heavyweights Reliance Industries and Infosys. The Sensex down 31 points at 16,865. Nifty slipped 6 points at 5,115. Earlier the Sensex had touched an intra-day low of  16,811 and the Nifty at 5,095.

BSE oil & gas index has slipped 1.2% in late morning trades, led by Relaince Industries. IT, Auto, metal indices have dropped marginally as well. However, Capital goods index has added 1.3% to 9,717. Realty and power indices are up in the green.

Capital goods shares gained after the Prime Minister’s Office (PMO) had called for a meeting on Wednesday to revive the contentious issue of imposing duty on foreign power equipment in the country.BHEL has added 2.5% at Rs 220 while Larsen & Toubro have advanced 1-2% each.

Market heavyweight - Reliance Industries has dropped 2.8% at Rs 717 after the Canadian oil and gas producer Niko Resources, which owns 10% stake in KG D6 block, said total proved plus probable natural gas reserves have fallen almost 51% to 377 billion cubic feet equivalent (bcfe) as it struggles with low reserves at its KG D6 block in India.

Software majors also witnessed profit taking. Infosys was marginally down while TCS dropped 2% at Rs 1,227. Among other Sensex losers Hindalco, Maruti Suzuki and Bajaj Auto were down 1% each.

Cable and broadcasting companies like Den Networks, Hathway Cable on reports that the information and broadcasting ministry has extended the deadline for digitilisation in four metros from June 30 to October 31, 2012. Den Networks is down 1.2% at Rs 97.80, Hathway Cables is down 1%. Meanwhile WWIL is up 5% in trades.

BSE market breadth is positive. Out of 2,853 stocks traded, 1,617 shares have advanced and 1,090 shares have declined.