Markets remain sluggish post May trade data

May trade deficit stood at 3-month low of $10.41 billion as against $10.99 billion in the month of April

Markets continue to remain sluggish post the release of the May trade deficit which stood at 3-month low of $10.41 billion as against $10.99 billion in the month of April.

Meanwhile, the exports for the month of May stood at $22.34 billion as against $22.05 billion in April showing a rise while the imports declined from $33.05 billion in April to $32.75 billion in May. 

At 10.45 AM, the Sensex is down 83 points at 26,503 levels and the Nifty has slipped 27 points at 7,987 levels.

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(updated at 9:40 AM)

Markets have opened the session on a cautious note tracking weakness in the global peers as investors remain wary on the possibility of Greece defaulting on its debt. Meanwhile, two-day policy meeting of the US Federal Reserve's monetary committee due later during the day will be keenly awaited.

At 9:40 AM, the Sensex is down 116 points at 26,470 levels and the Nifty has slipped 37 points at 7,977 levels.

RUPEE

The rupee is trading at 64.07 against the US dollar down by 9 paise tracking weakness in the local equities.

MONSOON EXPECTATION

The monsoon accounts for more than 70% of India's total rainfall. About 77% of the country has received excess or normal rain since June 1, the weather office. The government on June 2 cut its estimate of June to September monsoon rains to 88% of the 50-year average, from 93% in April.

GLOBAL MARKETS

Asian stocks were subdued early on Tuesday as financial markets braced for the possibility of Greece defaulting on its debt, while a two-day policy meeting of the US Federal Reserve's monetary committee starting later in the session also counselled caution.

Global equity markets have felt a pinch after talks between Athens an its creditors broke down over the weekend, with Greece only having two weeks before it has to repay 1.6 billion euro to the International Monetary Fund. Sentiment soured further on Monday as both sides hardened their stance.

MSCI's broadest index of Asia-Pacific shares outside Japan and stood unchanged. Japan's Nikkei lost 0.3% while Australian shares were little changed.

The two-day Federal Open Market Committee (FOMC) meeting begins later in the session and the focus was on whether the US central bank offers a hint of an interest rate rise later in the year.

With Reuters input

BUZZING STOCKS

Reliance Communications (RCOM) and Russia's Sistema are carrying out discussion on a potential merger between the Indian telecom business of Sistema Shyam TeleServices (SSTL) and RCOM via stock swap. RCOM is up nearly 2%, 

Oil marketing companies including Oil India, HPCL and BPCL are trading higher by 1% each after retailers hiked petrol prices by Rs 0.64 a litre and slashed diesel by Rs 1.35 a litre in line with international prices and adjusting for foreign exchange rates. 

LIC which holds 9.06% stake in Ciarn India has sought a better offer, including higher dividend on the redeemable preference shares that Vedanta plans to offer Cairn shareholders as part of its planned merger. Cairn India is trading 2% lower and Vedanta is trading with marginal losses.

The Foreign Investment Promotion Board (FIPB) has deferred Kotak Mahindra Bank's proposal for raising foreign investment limit in the bank for the second time from 48% to 55%. The stock is trading lower by 1.5%. 

In a view of Make in India initiative, Airbus Group announced to award aero-components production contract to Mahindra Group. M&M is trading 0.5% up. 

Syngene International, research arm of pharma major Biocon, has received Sebi's approval to launch an initial public offer (IPO). Stock is up 2%. 

Essar Oil will sign a final term sheet with Russia's OAO Rosneft to import 10 million tonnes of crude oil a year for 10 years after an initial deal was signed in December. Stock is up 2%.

HDFC has reported 12% increase in its advance tax outgo to Rs 465 crore for the first quarter of the current fiscal. The stock is trading lower by 1%.

Aurobindo Pharma has received the final approval from the US Food & Drug Administration(US FDA) to manufacture and market extended Phenytoin Sodium Capsules, an anti-epileptic drug for controlling seizures. The stock is trading higher by 1%.

In the broader market, BSE Midcap and Smallcap indices are trading lower by 0.2% each.

The market breadth is weak on the BSE with 865 declines versus 563 advances.