Markets under pressure, Sensex slips 300pts

Markets are under intense selling pressure in the noon deals. The Sensex has slipped 302 points to 16,575 and the Nifty is down 97 points at 4,966. In the morning, the markets opened lower on back of negative cues from Asian markets and extended the losses in the late morning deals.

According to Kunal Bothra, technical analyst with LKP Shares, "For Nifty, the key support are at 4,950 and on the upside a sustained break above 5,080 levels."

Meanwhile, the inflation has fallen sharply to 6.6% for the week ended November 26 compared to 8% during the previous week.

Back to markets, realty and capital goods stocks are amongst the worst hit in trades thus far. JP Associates is the top loser among the Sensex stocks, down 4.3% at Rs 67. Hindalco, Larsen & Toubro, Sterlite Industries, DLF, SBI, BHEL, Reliance Industries and Coal India are also trading lower by 3-4% each.

On the other hand, Wipro, Cipla, Hero MotoCorp, Bajaj Auto and TCS are among the notable gainers.

Among the individual stocks, Nectar Lifesciences advanced by 4% at Rs 17.95 after achieving a significant milestone by receiving European cGMP approval for its Cephalasporin Formulations manufacturing facility in Baddi, Himachal Pradesh.

Steel Strips Wheels has rallied 9% to Rs 251, extending last two day’s 30% gain, on reporting positive growth in total sales of steel wheel rims in November after a gap of three months.

UTV Software Communications is trading higher by 3% at Rs 980 after the Cabinet Committee on Economic Affairs (CCEA) approved the proposal of Walt Disney to acquire the company.

All the sectoral indices are trading in the red. BSE Capital Goods index is the top loser, down 3.3% to 9,753. Realty index has shed 3% or 50 points at 1,611. Metal, Power, Oil & Gas, Bankex, PSU, Auto and Consumer Durable indices are also down 1-2% each.

BGR Energy is the top loser among the capital goods stocks, down 5.4% at Rs 255. Punj Lloyd, Alstom Projects, Suzlon Energy, Praj Industries and Crompton Greaves are also among the prominent losers. From the realty space, HDIL is the top loser. It is followed by D B Realty, Peninsula Land, Prestige Estates, DLF, Oberoi Realty and Sobha Developers.

The broader markets are in line with the benchmark indices. BSE mid-cap and small-cap indices have shed 1.4% each.

The overall market breadth is extremely negative as 1,787 stocks are declining while 660 are advancing.