The markets witnessed a gap-down opening and the BSE Sensex is currently at 16,581, down 251 points and the Nifty at 5,006, down 81 points. Within minutes after opening, the Nifty slipped below the crucial 5,000 mark to touch a low of 4,996 levels.
The benchmark equity indices are likely to come under further pressure this week as investors await clarity on the general anti-avoidance rule (GAAR) and factory output data for March on the domestic front.
Clarity on the tax treaty with Mauritius and the rupee movement will also be keenly watched. The Sensex and Nifty lost over two per cent each last week to end at 16,831 and 5,087 levels, respectively.
Weekend elections in France and Greece are adding to pressure on stocks and commodities on Monday. In France, Nicolas Sarkozy was ousted as president by socialist Francois Hollande, who has indicated that he wants to renegotiate Europe’s fiscal compact, which aims to impose tough budget rules for Europe.
Asian markets also taking a beating, with Japan’s Nikkei Stock Average down 2.4 per cent. Back home, the Nifty is likely to seek support around 5,045-5,020, and may face resistance around 5,130-5,155, analysts suggest.
The markets witnessed a gap-down opening with the BSE Sensex having opened at 16,610, down 220 points and the Nifty at 5,006, down 81 points.
The benchmark equity indices are likely to come under further pressure this week as investors await clarity on the general anti-avoidance rule (GAAR) and factory output data for March on the domestic front.
Clarity on the tax treaty with Mauritius and the rupee movement will also be keenly watched. The Sensex and Nifty lost over two per cent each last week to end at 16,831 and 5,087 levels, respectively.
Weekend elections in France and Greece are adding to pressure on stocks and commodities on Monday. In France, Nicolas Sarkozy was ousted as president by socialist Francois Hollande, who has indicated that he wants to renegotiate Europe’s fiscal compact, which aims to impose tough budget rules for Europe.
Asian markets also taking a beating, with Japan’s Nikkei Stock Average down 2.4 per cent. Back home, the Nifty is likely to seek support around 5,045-5,020, and may face resistance around 5,130-5,155, analysts suggest.
On the sectoral front, all the indices are in the red. BSE Bankex, Consumer Durables, Realty and Capital Goods indices, down 2-3% each, are leading the losses.
SBI, ICICI Bank, Bank of Baroda and Axis Bank, down 4-5% each, are the prominent losers from among the financials.
On the Sensex, SBI, ICICI Bank, Hindalco Industries, Larsen & Toubro and Hero MotoCorp, down 2-4% each.
Jaiprakash Associates has slipped almost 7% to Rs 66.40 in opening trades on reports that the Himachal Pradesh High Court’s green bench imposed a penalty of Rs 100 crore for violating the law and fraudulently setting up a cement plant and a thermal power plant. “A division bench of Justices Deepak Gupta and Sanjay Karol passed the landmark judgment May 4 ordering payment of Rs.100 crore as damages for having set up a cement plant by adopting fraudulent means and ordered the company to dismantle the 62 MW captive thermal plants within three months that is being constructed in the same premises” the report suggests.
The broader markets are also performing weak with the mid-cap and small-cap indices having shed 1-2% each.
The overall market breadth is very weak as 954 stocks have declined against 285 advancing ones, on the BSE.