Selling pressure continues

The markets continue to trade in the negative and the Sensex is struggling to keep above 18,000 level. Currently the Nifty is down 98 points at 5,388 and the BSE benchmark index shed 335 points in the afternoon trades. The picture was no different in the broader markets. The smallcap and the midcap indices are down 1.4% each outperforming the Sensex which lost 1.7%.

The markets opened in the red earlier in the day on the back of a dismal set of cues from the Asian front. Thereon the markets slid lower  through the day. The nervous opening across Europe only intensified the downfall which saw the Nifty slipping to nine week lows falling below the crucial 5,400 levels and the Sensex falling below the 18,000 mark, onlt to recover later in the day. The Asian markets closed down in the region of 1-3% each, while the CAC, FTSE abd DAX have lost more than a percent each in early trades.

Among the sectoral indices, rate sensitives Realty and Bankex indices are the top loser losing over 2.5% each followed by Poer and Capital Goods down 2% each. On the other hand, FMCG and Consumer Durables up 0.5% and 0.2% respectively are the only indices in the green.

The draggers in the realty space are D B Realty and unitech down 6% each followed by Indiabulls Real Estate and Orbit Corporation losing 2% each. Banking shares declined further on worries of rising interest rates eating into their margins. Canara Bank, ICICI Bank, Indusind Bank, Bank of Baroda and IDBI Bank shedding 3% each are the major laggards. Country's top lender SBI, which was one of the most beaten stock last week is down 2.5%.

Cigarette maker ITC is the only Sensex scrip that is trading in the positive on the back of its good Q4 numbers. The cigarette maker's net profit rose 24.63% to Rs 1281.48 crore on 16.53% rise in total income to Rs 6062.15 crore in Q4 March 2011 over Q4 March 2010.

Among the Sensex losers are India's largest power equipment maker by sales BHEL down 6% post its results followed by Reliance Infrastructure, Tata Motors, ICICI Bank, Tata Steel and ONGC down 3% each.

 

The market bredath is very negative. Of the total 2799 stocks trdaed on the BSE, 1996 stocks declined while 704 advanced on the BSE.