)
Markets continue to reel under selling pressure with rate sensitive shares and select pharma majors leading the decline. Further, fears of selling by foreign funds on expectation of a rate hike by the US Fed amid strong jobs data also dampened market sentiment.
At 11:40 AM, the Sensex was down by 140 points or 0.5 % to 26,648 levels while the Nifty was below 8,100 to 8,073 levels, down by 43 points or 0.52 %.
The broader markets are, however, underperforming their larger peers with BSE Midcap and Smallcap indices down 1% and 0.8%, respectively. The market breadth is also negative with 1,208 declines against 908 advances on the BSE.
Foreign institutional investors were net sellers to the tune of Rs 550 crore on Friday, as per BSE data.
The session will be dominated by the progress of monsoon, the movement in the rupee and the prices of crude oil in the global market.
Meanwhile, oil prices weakened in Asia after the Organisation of the Petroleum Exporting Countries (OPEC) decided in a meeting on Friday, 5 June, to keep production levels unchanged.
RUPEE
The Indian rupee has breached the 64-level mark at the Interbank Foreign Exchange and is quoting at Rs 64.14, declining by 39 paise. The depreciation in the rupee is caused by the capital outflows by foreign funds amid strengthening of the American currency against others overseas.
SECTORS AND STOCKS
Barring capital goods, all other sectoral indices are trading lower. Among the rate sensitive sectors, BSE Realty, Auto and Bankex were down 0.7-1% each.
Vedanta has lost over 2% on the Sensex after, its subsidiary and one of the largest independent oil and gas exploration and production companies in India, Cairn India dropped over 3% on further decline in crude oil prices.
Tata Motors extended losses and was down over 2% on the back of weak Jaguar sales in May. The company reported lower Jaguar sales in May 2015 at 168 units compared with 375 units in May 2014.
Other notable losers include index heavyweights HDFC, Reliance Industries and Infosys were down 0.6-1.6% each while Sun Pharma was down 1.6% on the BSE.
Coal India is the highest gainer on the Sensex, up by 1.6%. The government has decided to auction coal linkages for non-regulated sectors, which constituted for about 12% of Coal India’s FY15 production.
Other notable gainers on the Sensex are L&T, Axis Bank, and Tata Power, all gaining nearly 1% each.
Among other shares, Wockhardt have slipped over 3% after the company recalled over 200 bottles of Captopril tablets, used in treatment of blood pressure, and Clarithromycin antibiotic tablets manufactured in the US because of deviations in current good manufacturing practice norms stated by US Food and Drug Administration (FDA).
Sun TV has tanked 26% on the NSE on reports that the Ministry of Home Affairs (MHA) has struck down the proposal by the Information and Broadcasting (I&B) Ministry for giving security clearance to 33 television channels of Sun TV Network.
Bank of Baroda dipped 4.5% to Rs 153 on the Bombay Stock Exchange (BSE) after the bank revised its rate of interest payable on term deposits.
Shares of SpiceJet have surged around 6% to Rs 19.20 on the Bombay Stock Exchange (BSE) after chairman and main promoter Ajay Singh decided to infuse capital for fleet expansion.
Shares of Eros International Media has zoomed nearly 13% to Rs 498 on the Sensex on reports of delisting buzz.
