Markets slip in negative territory; L&T, SBI dip 2%

Sensex is down 36 points at 25,844 and the Nifty has lost 15 points to trade at 7,712.

Markets have slipped in the negative territory weighed down by Index heavy weights L&T and ICICI Bank contibuting over 50 points to the decline on the 30-share Sensex.

 

 At 12.55 PM, the 30-share Sensex is down 36 points at 25,844 and the 50-share Nifty has lost 15 points to trade at 7,712.

 

In the broader market, the BSE Mid-cap and Small-cap indices are underperforming the large counterparts and are down 1.6% each.

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(updated at 12.55 PM)
Markets have erased its early gaines owing to heavy selling in Capital goods stocks and financials. At 11.42AM, the 30-share Sensex is up 27 points at 25,908 and the 50-share Nifty has gained 8 points to trade at 7,735.

 

In the broader market, the BSE Mid-cap and Small-cap indices are underperforming the large counterparts and are down 0.9% each.

 

Market breadth is weak with 1,505 losers and 910 gainers on the BSE.

 

Rupee

 

The Indian rupee was trading lower at 61.26 compared to its previous close of 61.08 on the back of weak industrial growth in June and higher-than-expected jump in July consumer price inflation.

 

Global Markets

 

Asian shares except for Japan were trading lower tracking weak overnight cues from Wall Street while tensions in Ukraine also weighed on investor sentiment. Japanese shares were trading with marginal gains and the benchmark Nikkei was up 0.2%. Shanghai Composite, Hang Seng and Straits Times were down 0.2-0.6% each. In Asia, the focus is on a series of Chinese economic data due, including industrial production and retail sales for July. 

 

Sectors and Stocks

 

On the sectoral front, BSE Capital goods, Metal, Power and Realty indices are losing sheen, down between 0.5-2.4%. However, FMCG, Healthcare, IT, Teck and Oil and Gas indices are trading in the positive territory.

 

BHEL is the top loser of the hour, down over 6% on the back of poor quarterly numbers. Following the tandem, L&T has dipped 1.5%.

 

Metal pack is witnessing selling in the late morning trades. Coal India, Tata Steel and Hindalco have lost between 1-2.5%.

 

Axis Bank, ICICI Bank, SBI and HDFC have slumped between 0.5-1.5% after retail inflation as measured by the Consumer Price Index (CPI) accelerated to 7.96% in July from 7.46% in June. Therefore, Reserve Bank of India (RBI) is likely to maintain a cautious stance in the next policy too.

Canara Bank, Federal Bank, Bank of Baroda and Bank of India from the banking space are down 3% each.

 

Tata Motors which zoomed yesterday on the back of good quarterly results is down 0.4% on profit booking. Following the tandem, Hero Motocorp and Maruti Suzuki have lost nearly 0.3%.

 

Power stocks are dim with Tata Power and NTPC down 2% and 0.7%, each.

 

On the flip side, some fresh buying is visible in the FMCG space. ITC and HUL have gained nearly 1.6% and 2%, each.

 

Sun Pharma is up 1.4% on the back of strong quarterly results.

 

Technology shares are hogging limelight on the back of rupee depreciation. Infosys, Wipro and TCS have gained between 0.5-1%.

 

RIL, Sesa Sterlite, HDFC Bank are some of the notable names in green among others.

 

Shares real estate are under pressure, falling by up to 6% on the bourses. Unitech, Indiabulls Real Estate, Housing Development and Infrastructure (HDIL) and DLF from real estate sector are down 3-7% on the National Stock Exchange (NSE). 

 

 Among other shares, Engineers India plunged 13% to Rs 240 on the BSE after posting a sharp drop in net profit at Rs 80 crore for the first quarter ended June 2014 (Q1), on the back of lower sales and higher expenditure. The company had recorded a profit of Rs 129 crore in the same quarter year ago.

 

Shares of NMDC were up nearly 3% at Rs 178 after the state-owned company reported better-than-expected earnings for the first quarter ended June 30, 2014 driven by volumes.