The markets are experiencing selling pressure this afternoon due to the drubbing received by index heavyweights such as ONGC, SBI and RIL. The Sensex is quoting at 18,151, lower by 193 points or 1%, and the Nifty is at 5439, down 59 points. The midcap index is at 6798, down 51 points and the smallcap index is at 8255, down 51 points.
The benchmark indices had a muted opening and were trading in a sideways manner throughout most of the session, raising hopes of a relatively stable trading day after the nearly 200-pts fall (Sensex) witnessed on Monday. But the result announcement of State Bank of India proved to be ominous.
In results that were below street expectations, the country's largest public sector bank reported an 8.9% dip in its consolidated net profit at Rs 10,684.9 crore for the year ended March 31, 2011. For the year-ago period, the net profit was Rs 11,733.8 crore. The stock has slid by 5.33% at Rs 2476.
ONGC has plunged by 5.7% to Rs 280 on reports that the government has increased upstream share to 38.5% of total subsidy burden of about Rs 77922 crore for the year ended March 2011 (FY 2011).
Index heavyweight RIL is hurtling towards the 900 mark yet again, sliding by 2.4% at Rs 921.
And there is no respite for auto stocks as they have been hammered on fears that rising fuel prices and interest rates may dampen demand. Hero Honda has plummeted by 3.1% at Rs 1806 and Tata Motors has shed 1.7% at Rs 1186.
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On the other hand, the FMCG stocks are bucking the weak trend this afternoon. ITC has strengthened by 1.5% at Rs 189 and Hindustan Unilever has firmed up by 1.3% at Rs 308.
The market breadth is weak. Out of 2713 stocks traded on the BSE, there are 933 advancing stocks as against 1666 declines.