Heavyweights weigh on markets

Markets dropped sharply in noon trades as investors took to booking profits after six contunous days of gain. Index heavyweights - Reliance and Bharti Airtel - dragged the Sensex 249 points from its high of 19,031 to a low of 18,782. The index recovered marginally to 18,819 - down 27 odd points.

FMCG stocks continued to shine in the index, even though heavyweight, Hindustan Unilever dropped. The FMCG index gained 0.7% to 4,072 on hopes of a good monsoon.

BSE realty index jumped 2.6% to 2,074 buoyed by DLF, Ackruti City, HDIL, Peninsula Land and Indiabulls Real Estate. The index has dropped 30% so far this year -  underperforming the benchmark by a huge margin.

DLF gained 3.6% at Rs 218 on plans to sell its shareholding in two IT special economic zones in Pune and Noida for Rs 1300 crore. Reliance Infra was up 1.2% at Rs 543.

Foreign Institutional Investors continued to buy in the Indian markets. So far, the FIIs have invested Rs 5,084 crore since June 23.

Global indices have also given a boost to the domestic markets. Hang Seng added 1.5% to 22,398. Nikkei jumped 0.5% to 9,868. Seoul and Taiwan markets advanced 1% each.

However, weakness in Bharti Airtel and Reliance have dampened investor spirits. Bharti shed 3% at Rs 384 while RIL was down 2% at Rs 879.

Maruti Suzuki was down 2% at Rs 1,134 after the company reported a 9% drop in total sales for the month of June 2011 as production was impacted at the company’s Manesar plant. tata Steel, M&M and Cipla were the other losers.

On the other hand, Hinalco gained 2.3% at Rs 185. Reliance Communications, ONGC and Infosys gained 1-2% each.'

BSE market breadth was positive. Out of 2,705 stocks traded, 1,573 has advanced while 1,019 has declined.