Sensex, Nifty remain weak; Financials decline

Benchmark indices are trading weak in the late noon trades as investors book profits at higher levels. 

 

The market sentiment is also weak after stock market regulator SEBI imposed restrictions on issue of Offshore Derivative Instruments (ODIs) by foreign portfolio investors (FPIs).

 

However, July-Sept GDP growth seen around 5 pct y/y according to the government sources.

 

At 1.20 AM, the Sensex is down 124 points at 28,376 and the Nifty slipped 60 points to trade at 8,471.

 

The rupee is trading at 61.91 per dollar versus Monday's close of 61.9350/9450. The unit had earlier fallen to 62.04.

 

Shares of mid and small-sized companies are under pressure on the bourses with the Bombay Stock Exchange (BSE), on account of profit booking.

 

The smallcap index is down 2.4% at 1,1051 on the BSE at 12.20 hours. The index hit fresh six-year high of 11,550 levels on November 19..Most the stocks from the index are trading lower by 3-13%. On the other hand, the BSE Mid-cap index has declined 2% and is quoting at 10,008 levels as against 0.5% fall in the benchmark indices.

 

Sectors and Key stocks:

 

On the sectoral front, BSE Realty index is the top loser down 3.3% followed by BSE Metal, Capital Goods, Power and Consumer Durables indices trading lower between 1-2%. BSE Bankex is down over 1%. However, BSE FMCG index is up 0.4%.

 

Shares of many midcap and smallcap banks are trading lower between 1-4% on profit booking after rallying 20% in past one and half months.

 

Canara Bank, Bank of India, Federal Bank, Yes Bank, Punjab National Bank, Kotak Mahindra Bank and Bank of Baroda are down between 2-4% on the BSE.

 

Among realty stocks, Indiabulls Real Estate and Unitech have plunged 8% each at Rs 74.65 and Rs 18.20 respectively.  National Building Construction Corporation (NBCC) slipped 4% to Rs 727, while Housing Development and Infrastructure (HDIL) and Delta Corp dipped 5% each at Rs 78.50 and Rs 93.20 respectively. Oberoi Realty slipped 4% at Rs 240 on the BSE.

 

Shares of insurance companies which rallied in the recent past on news that the government would allow more foreign investment in the insurance sector, dropped in today’s trade. The Opposition parties likely to unite against Centre on passage of FDI in Insurance Bill. Reliance Capital dipped 6%, Max India lost 4% and Exide Industries declined over 3%.

 

Citigroup upgrades BHEL to "buy" from "sell" and raises target to 335 rupees from 176 rupees; stock is trading up 2%.

 

Shares in Bharti Airtel have gained 1.5% after American Tower Corp said it will buy Bharti Nigeria phone masts for $1.1 billion.

 

Shares of Forbes and Company has locked in upper circuit of 10% at Rs 1,308, extending its past five days rally on the BSE.

 

Shares of JK Tyre and Industries has gained 3% to Rs 568 on National Stock Exchange (NSE) in otherwise subdued market after the foreign institutional investors (FIIs) bought shares of the company through open market.

 

The market breadth in BSE remains weak with 2,163 shares declining and 632 shares advancing.