Markets at day's low

IT shares trade soft, ONGC, RIL drag

Markets have slipped into the red on selling pressure in IT stocks. BSE sensex touched a high of 17,523 on opening trades but has been unable to hold on to gains. The index is now down marginally at 17,417.

Asian markets are trading on a mixed note. Nikkei has gained 0.4% to 9,104 on stronger commodity sales. However, Hang Seng has slipped 0.2% to 19,701. Shanghai Composite is flat following the PMI data which points to a stagnation in manufacturing activity.

Meanwhile, India's services sector in June expanded for the eighth straight month although at a slower clip, but new orders picked up and firms hired workers at the fastest pace in a year, a business survey showed on Wednesday. HSBC's services purchasing managers' index, which gauges the activity of around 400 firms in India, dropped to 54.3 in June from 54.7 in May. However, it has kept above the 50 mark that signifies growth since November.

BSE metal index rose after LMEX, a gauge of six metals traded on the London Metal Exchange (LME), rose almost 2% to 11,129, after China, the world's second-largest economy, reported rise in its Purchasing Managers' Index (PMI) and hopes of further monetary easing by major central banks.

BSE realty index is up 0.8% at 1,756. Auto, bankex, consumer durables and power were also in green. However, IT index shed 0.86% to 5,672 as the rupee gained marginally to 54.62 against the dollar today. US is the biggest market for software exporters. Wipro declined 2% to Rs 393. Infosys and TCS slipped 0.5-1% each.

ONGC was the key loser - down 2.2% at Rs 283. ONGC slipped on profit booking after the company became India's most valued firm with market capitalisation of Rs 2.48 lakh crore, displacing Tata Group software firm TCS from the numero uno slot. Dr Reddy's HUL, Sun Pharma and NTPC also declined. Market heavyweight - Reliance was down half a per cent.

On the other hand, Jindal Steel added 4% to Rs 470. Sterlite added 3% to Rs 108. Maruti Suzuki, Tata Steel and SBI advanced 1-2% each.

BSE market breadth is marginally positive. Out of 2,734 stocks traded, 1,519 shares have advanced while 1,083 shares have delcined.