Nifty slips below 7,500; Sensex dips over 250 points

Markets have extended losses and are trading near day's low weidown by oil and financial shares

A 15.10 Sensex traded over 250 points lower at 25,053 while the Nifty shed over 80 points at 7,488.

Top losers on Sensex are ONGC, RIL, NTPC, Coal India, Gail, HDFC and HDFC Bank.


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Upated at 14.26




Markets continue to trade lower during late noon trades as shares of Oil & Gas companies drag after the government postponed the decision to hike gas price while Capital Goods shares hold support as excise sop got extension.

 

Investors also remained cautious ahead of the expiry of June derivative contracts.

 

At 14.20 PM, S&P BSE Sensex shed over 160 points at 25,156 and the CNX Nifty traded 40 points lower at 7,527.

 

Though the broader markets are trading in the negative zone but are outperforming the benchmark indices with the BSE Small-cap and Mid-cap indices losing only 0.03%.

 

The breadth at the BSE also remained marginally weak with 1,451 scrips declining and 1,439 scrips advancing.

 

Expert Speak

Chandan Taparia, Derivative Analyst, Anand Rathi Financial Services says, "Nifty rollover is better compared to the last 2-3 series in percentage terms but as far as number of contracts it is still in-line. Market is near to major support zone of 7,520-7,500. Till it holds we may see range bound movement, below that consolidation phase may turn into selling pressure. It is better to hedge the position ahead of the Budget."

 

Rupee

 

The rupee moved in a narrow band, tracking equities amid month-end importer dollar demand. The pair trading at 60.1575/60.1600 from Wednesday's close of 60.1250/1350.

 

Traders expect the rupee to move in the narrow 60.00-60.50 range to the dollar until clarity emerges on Iraq turmoil.

 

Global Markets

 

Asian stocks rose on Thursday, 26 June 2014, amid optimism the US economy is emerging from a worse-than-estimated contraction last quarter. Key benchmark indices in Japan, China, Indonesia, Singapore, Hong Kong, South Korea and Taiwan rose by 0.27% to 1.19%.

 

Similarly, European markets traded higher on Thursday, 26 June 2014, after weaker than expected US growth figures suggested that interest rates set by the Federal Reserve may stay lower for longer than thought. Key benchmark indices in UK, France and Germany were up 0.14% to 0.22%.

 

Sectoral Indices

 

BSE Oil & Gas index has slipped more than 3% as shares of oil and gas companies are under pressure after the government defers its decision on gas price hike by three months till December 31, 2014.

 

Realty index has slumped over 3% followed by  Metal, Power, Bankex and FMCG, all down by 0.1% to 0.6%.

 

Meanwhile, Capital Goods index gained over 1%.

 

Consumer Durables, Auto, IT and Healthcare, edged higher by 0.2% to 0.9%.

 

Buzzing Stocks

 

ONGC was top Sensex loser as the scrip slumped over 5% followed by RIL down over 3%.

 

Other stocks that slipped are NTPC, HDFC and Gaill, all down by 1% to 3%.

 

At the gaining side, Bhel, L&T and Dr Reddy’s Lab surged more than 1% while Wipro and Hindaclo gained by 0.7% to 1%

 

Kesoram Industries has moved higher by 9% to Rs 121 after the company said it is exploring options for reorganising and realigning its existing businesses. The B K Birla Group Company is engaged in manufacturing of tyres, tubes, flaps, cement, viscose filament, rayon yarn, etc.

 

Shares in ITC ltd have turned positive and are trading higher after Morgan Stanley upgraded the stock to "overweight" from "equal-weight" and increased the price target to Rs 400 rupees from Rs 360.

 

Man Infraconstruction has surged 7% to Rs 154 on NSE after the company said its board has approved stock split in the ratio of 5:1.