Weakness persists, banks drag

Bank, metal and oil and gas shares weak

Benchmark share indices maintain the weak activity with Metal, Oil & Gas, Banking and IT shares leading the downfall. Weak global markets and Rupee hitting new low have also weighed over the local markets.

At 10:30, the Sensex was down 107 points at 16,925 and the 50-share Nifty was down 35 points at 5,130. 

The rupee plunged by 57 paise to a new low of Rs 56.87 against the dollar in early trade today on increased capital outflows and rising demand from importers for the American currency. Besides, strengthening of dollar against the euro also put pressure on the local unit.

On the global front, Japan's Nikkei average fell on Friday as data showing U.S. manufacturing grew at its slowest pace in 11 months in June added to concerns about weaker growth in Europe and China, but the index was still headed for best weekly gain in four months.

Back home, BSE Metal, Oil & Gas, IT and Bankex indices have plunged between 0.6-1.2%. 

 

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Updated at 9:34

The markets have opened on a weak note this morning, tracking cues from global bourses. The Sensex touched a low of 16,856 in opening deals. However, the index has recovered somewhat and is now down 102 points at 16,930. Nifty is down 33 points at 5,131.

US stocks posted the worst day in three weeks on Thursday on mounting evidence that slowing manufacturing growth worldwide threatened corporate profits.

The Dow Jones industrial average slipped 2 per and the Standard & Poor's 500 Index lost 2.2%.

Asian shares fell on Friday and the safe-haven dollar hovered near its highest in a week-and-a-half after weak manufacturing data from the United States, Europe and China heightened fears over the outlook for global growth.

BSE oil & gas index continues to remain under pressure and is down 1% at 7,839. Metal, IT and realty indices are also in the negative zone.

HDFC is the top loser among Sensex stocks, down 1.5% at Rs 638. Gail and Infosys have slipped 1.4% each. Banking shares - SBI and ICCI Bank are down 0.7%.

Metal shares have delcined following the global commodity sell-off. Sterlite, Tata Steel and Hindalco have declined around 1% each.

Meanwhile, Cipla has added 1.5% to Rs 315. Auto shares have bucked the trend and is trading in the green. Hero MotoCorp, Maruti Suzuki and Mahindra & Mahindra have advanced around 1% each.

Among individual stocks, cement stocks are under pressure as competition watchdog has imposed a hefty penalty of about Rs 6,200 crore on 11 leading cement companies for price cartelisation. ACC has delcined 2.3%, Grasim is down 1.6%, Jaiprakash Associates has slumped 3.2% and Ambuja Cements is down 2.3%, respectively.

Rating agency Moody's has placed Tata Power Company's B-a-3 corporate family rating on review for downgrade. The stock has moved down 1% at Rs 93.

Hindustan Zinc is down 1% at Rs 119 on reports that the government is likely to reject an offer by Vedanta Resources to buy the residual stakes in group firms Hindustan Zinc and Bharat Aluminium Company.

Mastek’s US subsidiary has signed a multi-year licence, implementation and maintenance engagement for its STG Billing solution with a Fortune-100 insurance and financial services company. The news has helped Mastek buck the trend and gain 5% at Rs 110.

BSE market breadth is negative. Out of 1,507 stocks traded, 759 shares have declined while 684 shares have advanced in trades.