Sensex slips below 21k on global cues

Benchmark indices are marginally lower as investors book profits and global markets remain weak due to political uncertainty in Ukraine.

Market shed its initial gains and is currently trading at day's lows led by a sell-off in index heavyweights. Broader markets remained in the green-zone as BSE mid-cap and small-cap indices remained marginally positive.

The 30-share BSE Sensex was down 123 points at 20,996 while 50-unit NSE Nifty was down 43 points at 6,234. 

Investors choose to focus on negative global cues overlooking an uptick in the manufacturing PMI which hit 1-year high in the month of February. World markets are currently trading lower over Ukraine-Russia standoff. The HSBC Purchasing Managers' Index (PMI) for manufacturing stood at 52.5 points in February, a one-year high. It was 51.4 points in January.
(Update at 1340hrs)
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Benchmark indices were marginally lower in late morning trades on Monday as investors booked profits and global markets remained weak due to political uncertainty in Ukraine.

At 11:25 hours, the 30-share Sensex was down 7 points at 21,113, while the Nifty-50 declined by 8 points to 6,269.

Broader markets outperformed the benchmark, with the BSE Mid-cap and Small-cap increasing by 0.64% and 0.68% respectively, compared to Sensex's marginal loss of 0.03%.

At 61.87, the rupee was down 12 paise compared to Friday's close of 61.75 versus the dollar. Global risk aversion on geopolitical tensions in Ukraine is the primary cause for this decline, which is being seen in most Asian currencies.

Breadth of the market was positive, with 1224 advances, 801 declines, and 97 scrips remaining unchanged.

Asian Markets

Asian markets were down on Monday morning as increasing tension in Ukraine caused investors to remain wary. Disappointing Chinese manufacturing PMI data and weak growth in capital spending of Japanese companies also dampened investor sentiment. Nikkei-225 was down by 199 points, or 1.36%, to 14,643.

Singapore's Strait Times was down 0.8% at 3,086 while Hong Kong's Hang Seng declined by 0.56% to 22,710.

Sectors and Stocks

Amongst the various sectoral indices, the S&P BSE Consumer Durables was leading the list of gainers, rising 2% on the back of strong gains of 2-3.5% each in Bajaj Electric, Titan, VIP Industries, and PC Jeweller. The HSBC Purchasing Managers' Index (PMI) for manufacturing stood at a one-year high of 52.5 points in February. It was 51.4 points in January.

Bankex, Realty, FMCG, and Oil and Gas were up by 0.2-0.7% as well. Capital Goods index was down almost 1%, while IT, Auto, and Power also declined by 0.3-0.7% each.

GAIL, up 1.17%, was leading the list of gainers in the S&P BSE Sensex, while Dr. Reddys Lab and Larsen and Toubro was were the biggest losers, declining by 1.7% and 1.5% respectively, as investors booked profit after seeing significant gains recently.

Among other stocks, Monsanto India is locked in its 10% upper circuit for the second day in a row at Rs 1,613, also its new high on the BSE, on reports that the Union ministry of environment and forests (MoEF) has approved field trials of genetically modified (GM) food crops on a conditional basis.

Jaiprakash Power Ventures' stock has tanked 15% to Rs. 14.05 after reports said that a consortium led by Abu Dhabi-based National Energy Co (TAQA) has agreed to buy two hydroelectric power plants from the company for about USD 616 million

Jubilant Life Sciences has surged nearly 9% to Rs 135.50, extending its Friday’s 8% rally on the NSE after the company said its manufacturing facility at Montreal, Canada, has got a clean chit from the US Food and Drug Administration (US FDA).

TVS Motor Company is trading higher by 3.2% at Rs 88.60 after reporting 6% year-on-year growth in two-wheeler sales in February 2014 to 170,293 units from 160,895 units during the same month last year.