Key benchmark indices ended the day on a soft note with the BSE Sensex having ended at (provisional) 16,483, down 64 points and the Nifty at 4,975, down 25 points.
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(Updated at 1430hours)
The markets have once again erased gains in late-noon deals as negative global cues and weakening rupee continue to weigh on the benchmark indices. The BSE Sensex is at 16,442, down 104 points and the Nifty is at 4,964, down 37 points.
Earlier in the day, the BSE Sensex touched the day's high at 16,616 and the day's low at 16,436.
In Asia, Japan's Nikkei share average fell 1.5% to a fresh three-month closing low as concerns grew that Greece could reject its hard-won bailout deal with international lenders that saved it from a disruptive bankruptcy. The index ended at 9,045, down 137 points. The Shanghai Composite and Hang Seng indices shed nearly 1-2% each.
European markets are mixed today. The CAC 40 is up 0.70% while the DAX has gained 0.28%. The FTSE 100 is off 0.21%.
Meanwhile, the rupee opened lower today as renewed concerns about the euro zone battered riskier assets, setting up the prospect of continued intervention from the RBI. The rupee was at 53.54/55 to the dollar in early trades versus its Tuesday close of 53.12/13.
On the sectoral front, BSE FMCG and IT indices are leading the gains, having advanced 1-3% each.
From the FMCG space, ITC has gained 5% at Rs 239 in trades today, after having declined almost 8% in six consecutive days from Rs 247 on April 28. Citigroup says the government has proposed an amendment to the pricing methodology for an excise duty announced in March, according to a report. The change would be positive for cigarette manufacturers as it would provide better pricing flexibility and margin upside, Citi says.
Other prominent gainers from the space include Colgate-Palmolive, Dabur India and Hindustan Unilever, up 1% each.
Notable gainers from the IT space include Tata Consultancy Services, MphasiS and Financial Technologies, up 1-2% each.
BSE Realty, Bankex, Oil & Gas and Metal indices have shed 1-2% each.
On the Sensex, DLF has shed 3.29% at Rs 184 and is the top loser from the The scrip had, however, traded higher yesterday in an otherwise weak market on reports that the company is planning to sell around 51% stake in its life insurance joint venture - DLF Pramerica Life - to HCL Group for about Rs 500 crore. Other prominent losers from the space include SBI, Coal India, NTPC and Sterlite Industries, down 2-3% each.
The gainers from the pack are ITC, Hindalco Industries, TCS, Hindustan Unilever and Larsen & Toubro, up 1-6% each.
Reliance Industries (RIL) has slipped almost 2% at Rs 694.4, extending its 5% fall in past five trading sessions after the company in its annual report said that it has cut estimates for proven gas reserves in its Krishna-Godavari (KG) block off the east coast by 6.7%, to 3.67 trillion cubic ft (tcf). “Ambani said production from the KG-D6 block had been adversely impacted, mainly due to unforeseen reservoir complexities and water ingress in the producing fields,” reports suggest.
The broader markets are witnessing weak trades with the BSE mid-cap and small-cap indices having shed nearly 1% each.
The overall market breadth is negative as 1,605 stocks have declined against 987 advancing ones, on the BSE.
