Key share indices continue to maintain the weak trend weighed down by sectors like Banks, Oil & Gas and Capital Goods. Negative opening of the European markets has also weakened the sentiments.
By 1300 hrs, the Sensex was down 108 points at 17,171 and the Nifty fell 35 points to 5,208. The Sensex and the Nifty have touched an intra-day low of 17,142 levels and 5,198 mark, respectively.
On the global front, Asian shares eased on Friday but were poised for their biggest weekly gain since January, as strong U.S. corporate earnings lifted the S&P 500 to a 2-1/2 month high while Spain's fiscal woes kept the euro under pressure. Nikkei, Strait Times and Shanghai Composite have fallen between 1-2%.
Oil prices eased after hitting an eight-week high overnight as Middle East tension stoked supply concerns, while a rally in soft commodities has seen corn and soybean prices soar to record highs due to a worsening U.S. farm-belt drought.
Back home, BSE Bankex, Capital Goods, Oil & Gas, Realty and Power indices have plunged by almost 1% each. However, sectors like Consumer Durable, Metal, Auto and FMCG are trading marginally in green zone.
From the banking and financial space, ICICI Bank, HDFC Bank and HDFC have declined by almost 1% each.
Capital Goods majors like L&T and BHEL have plummeted between 1-2%. Shares of power equipment makers such as Bharat Heavy Electricals, Larsen and Toubro, Crompton Greaves, BGR Energy, Alstom India and Thermax were trading higher in the early trades after the cabinet cleared new duty structure for import of power equipment.
From the Oil & Gas space, index heavyweight RIL has declined by almost 1%. ONGC fell by over 1%.
Dr Reddy’s Laboratories is the top Sensex loser, down nearly 3%, extending its previous day’s around 1% fall, on reporting a slightly lower-than-expected 28% year-on-year (y-o-y) growth in consolidated net profit at Rs 336 crore for the quarter ended June 2012. Net sales grew 28% at Rs 2,541 crore on y-o-y basis.
Other notable losers include GAIL India, Tata Power, Sterlite, Cipla, Wipro and M&M.
On the winning side, TCS is the top Sensex gainer, up nearly 2%. Bajaj Auto, Maruti Suzuki, JSPL, Hindalco and HUL have gained between 0.4-1%.
Among other shares, Ipca Laboratories has moved higher by over 5% at Rs 393 after the company said it has received US-FDA approval for its oral solid dosage formulations manufacturing facility situated at Pharmazone, SEZ Indore, Pithampur, Madhya Pradesh.
Timken India has tanked over 7% at Rs 207 on reporting 63% year-on-year (y-o-y) fall in net profit at Rs 6.91 crore for the quarter ended June 2012, due to higher expenditure. The company had profit of Rs 18.72 crore in a year ago quarter.
Kotak Mahindra Bank is trading lower by 3% at Rs 562, extending its yesterday 3% fall after reporting a fall in net interest margins (NIMs) at 4.7% in the quarter ended June 30, 2012, as against 5% as on June 30, 2011.
Meanwhile, Meanwhile, BSE Midcap index has slipped by 0.1% whereas BSE Smallcap index is flat.
The market breadth in BSE remains unhealthy with 1,111 shares declining and 1,367 shares advancing.
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