Markets continue to remain weak with the Sensex down 114 points at 18,381 and the Nifty slipped 39 points at 5,560. In the broader markets, the midacp and the smallcap indices were down 0.7% each.
Apart from IT and FMCG all the sectoral indices were in the negative on the BSE.
Among individual stocks, EID Parry was up over 1.5% at Rs 230, after the company informed that it has scheduled a meeting on October 11 to demerger the company's sugar subsidiary, Parrys Sugar Industries Ltd.
Shares of HCL Technologies was up 2% at Rs 582, after the company today announced that it has signed a multi-year, multi-million IT Infrastructure Management deal with Freescale Semiconductor.
Wind-energy major Suzlon Energy was down 4% at Rs 16.5, after the company informed that it is seeking four-month extension of its Zero Coupon foreign currency convertible bonds due October 2012.
Retail shares have plunged in trades today after Mamata Banerjee, head of Trinamool Congress withdrew support from the UPA government following the Cabinet Committee on Political Affairs (CCPA) approval for 51% foreign direct investment in multi-brand retail. Retail stocks such as Provogue (India), Pantaloon Retail, V2 Retail, Brandhouse Retail, Trent and Shoppers Stop are trading weaker by 2-5% each.
___________________
(Updated at 9:17am)
The markets started the trading session on a lower note tracking the political developments on the domestic front coupled with subdued
global cues. The Sensex has plummeted 125 points at 18,371, and the Nifty dipped 42 points at 5,558.
On the domestic front, Mamata Banerjee headed Tinamool Congress (TMC), a key ally of the ruling United Progressive Alliance (UPA), has withdrawn support from the ruling coalition at the centre post market hours on Tuesday following the government's announcements regarding the FDI in retail and other economic reforms.
On the global front, U.S. and European shares rose modestly on Wednesday after two days of declines, helped by U.S. housing data, while the yen recovered from a brief decline on the Bank of Japan's decision to ease monetary policy further.
Asian shares fell even as the HSBC Flash China manufacturing purchasing managers' index (PMI) ticked up to 47.8, from 47.6 in August. Among the Asian markets, Shanghai Composite, KLSE Composite and Nikkei lost nearly 1% each.
According to technical analysts, the Nifty is likely to seek support around 5,585-5,575, while face resistance around 5,615-5,625.
In the broader markets, the midcap index lost 0.8% underperforming the smallcap index and Sensex down 0.5% each.
Among the sectoral indices, Capital Goods, Realty, Metal, Auto, Power and Oil & Gas indices lost 1% each. On the other hand defensives counters like FMCG gained 0.5% along with IT index adding 0.2%.
The top gainers among the Sensex stocks in the opening trades were TCS, ITC, Wipro and Hindustan Unilever up 0.7-1%.Sun Pharma, Maruti Suzuki and Bharti Airtel up 0.2-0.4% were the other notable gainers.
Among the losers, BHEL, Hero MotoCorp, Tata Steel, L&T, HDFC, Hindalco, Bajaj Auto and SBI lost 1.5-3%. Index heavyweight, Reliance Industries shed 1.4%.
The market breadth was negative. 814 stocks declined while 433 stocks advanced on the BSE.
