IT, Metal stocks weigh on markets

Markets continued to trade in the negative territory in the mid-morning deals on the back of continued selling pressure visible in the Information Technology (IT) and metal stock. The Sensex was at 18,770, lower by 88 points and the S&P CNX Nifty shed 28 points at 5,632 levels. Meanwhile, the Asian markets were also trading on a weak note. Nikkei was trading lower by 67 points at 10,070, Hang Seng was at 22,525, down 201 points and the Taiwan slipped 101 points to 8,648 levels.

According to Navneet Daga, derivative analyst from KR Choksey Securities, "We have seen huge FII inflows since last ten odd trading sessions, pumped in the markets, going forward we maintain our view of Nifty retracing back till its bullish pivot point near 5,560 level, before making any decisive move ahead of 5,700, trading range seems to be between 5,500 to 5,800 for the July series."

Hindalco was the top loser among the Sensex stocks. It slipped 3.6% to Rs 182. Infosys which is expected to announce its Q1FY12 results tomorrow is also trading lower by 2% at Rs 2914. Maruti Suzuki, BHEL, DLF, HDFC, Wipro, State Bank of India, Tata Steel and TCS were also among the prominent losers, down 0.7-1.4% each. On the other hand, Mahindra & Mahindra, Reliance Communications, ITC, ONGC, Hero Honda, NTPC and Larsen & Toubro were among the notable gainers on the benchmark index.

Heavy selling pressure is visible in the technology stocks. The BSE IT index has declined 1.3% to 6,116 levels. Metal stocks were also on a downward spiral consecutively for the second trading session. The BSE Metal index shed 1% or 155 points to 14,808. Bankex, Realty, PSU and Power indices were also trading lower. At the same time the BSE FMCG index was the top sectoral gainer, up 0.8% at 4,073. Consumer Durables, Oil & Gas Auto and Healthcare indices were also trading in the green.

The broader markets were trading on a flat note. The BSE mid-cap index advanced 6,999, up 3 points and the small-cap index was at 8,372, lower by 3 points.

The overall breadth was marginally positive as 1,265 stocks were advancing while 1,143 stocks were declining.