 "Sensex breaks 28,000; metal, power stocks dim")
Benchmark indices have extended losses and are trading lower in the late morning hours as investors turn cautious on the account of increasing CAD in the July-September quarter due to rising gold imports. Further, weak global cues dampened the sentiments of the market participants.
By 11.55 the 30-share BSE Sensex is lower by 124 points at 27,996, while the broad-based NSE Nifty has slipped by 45 points to trade at 8,397.
On the global front, Asian share markets were mostly in the red on Tuesday while the US dollar began to edge higher once again aided by a media report the Federal Reserve might take a rhetorical step toward tightening at its meeting next week.
Key Stocks:
On the sectoral front, BSE Metal index is the top loser down 1% followed by FMCG, Power and Consumer Durables indices down nearly 1% each. However, BSE Realty and Healthcare indices are up 0.5% and 0.3% each.
Power and metal stocks are trading under pressure after the Supreme Court on Monday dismissed nearly 20 applications of power and steel companies seeking exemption from its judgment which cancelled 204 coal mining licences issued since 1993. Tata Power, Sesa Sterlite, Hindalco, NTPC, Tata Steel and Coal India are down between 0.5-2%.
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Cigarette maker ITC which rallied in the recent past is down 1.3% on profit booking.HUL is down 0.7%.
Oil prices also extended their long crash with US crude hitting its lowest in five years amid a glut of supply and pressuring energy stocks globally. ONGC has lost 1% while RIL is trading with marginal gains.
Sun Pharma has gained around 1% as its bid to acquire Ranbaxy has received approval from CCI, though with certain riders. Ranbaxy has gained over 3%. Following the tandem, Dr Reddy’s Lab is up 1%.
Domestic passenger car sales increased 9.52% to 1,56,445 units in November as compared with 1,42,849 units in the year-ago month.Motorcycle sales last month declined 3.05% to 8,53,254 units from 8,80,078 units a year earlier, according to data released by the Society of Indian Automobile Manufacturers (SIAM).Total two-wheeler sales in November rose 4.89% to 13,01,431 units.Sales of commercial vehicles rose 9.05% to 47,686 units in November SIAM said. M&M and Hero Motocorp are up 0.3% each. However, Tata motors and Maruti Suzuki have lost nearly 1% each.
The broader markets are outperforming the benchmark indices- BSE Midcap and Smallcap indices are up 0.1% each.
The market breadth on the BSE remains marginally negative with 1,174 shares advancing and 1,209 shares declining.