Equity benchmarks fell half a percent in noon trade while the broader markets were flat. The Sensex dropped 125.50 points to 26442.49 and the Nifty slipped 42.40 points to 7903.15. Declining shares outnumbered advancing ones by a ratio of 1355 to 1141 on the Bombay Stock Exchange. Dipan Mehta, Member, BSE & NSE, said that an absence of action on major reforms from the government has been putting doubts in the market. He said that technically, the markets appear to be weak and vulnerable at this point of time because all India-centric stocks, the banks, cement, capital goods—which are supposed to do well on the uptick of GDP growth rates -- are just not participating in the bull run, and the defensives and export-oriented sectors can contribute only up to a level. “Thus at this time it is best to be a bit of cautious and wait as this correction may deepen further over the next few trading sessions,” he added. Infosys was the most active stock on exchanges ahead of its second quarter earnings that will be announced on October 10, up 0.25 percent. Hindalco Industries, HDFC, Sesa Sterlite, Mahindra and Mahindra, Tata Steel, Cairn India, UltraTech Cement and Jindal Steel were top losers, down 2-4 percent. However, Tata Motors, HUL, Maruti Suzuki, NTPC, Bajaj Auto and HCL Technologies gained 0.5-2 percent.
Tuesday 7 October 2014
Sensex, Nifty weak; metals lose shine, Infosys most active
Equity benchmarks fell half a percent in noon trade while the broader markets were flat. The Sensex dropped 125.50 points to 26442.49 and the Nifty slipped 42.40 points to 7903.15. Declining shares outnumbered advancing ones by a ratio of 1355 to 1141 on the Bombay Stock Exchange. Dipan Mehta, Member, BSE & NSE, said that an absence of action on major reforms from the government has been putting doubts in the market. He said that technically, the markets appear to be weak and vulnerable at this point of time because all India-centric stocks, the banks, cement, capital goods—which are supposed to do well on the uptick of GDP growth rates -- are just not participating in the bull run, and the defensives and export-oriented sectors can contribute only up to a level. “Thus at this time it is best to be a bit of cautious and wait as this correction may deepen further over the next few trading sessions,” he added. Infosys was the most active stock on exchanges ahead of its second quarter earnings that will be announced on October 10, up 0.25 percent. Hindalco Industries, HDFC, Sesa Sterlite, Mahindra and Mahindra, Tata Steel, Cairn India, UltraTech Cement and Jindal Steel were top losers, down 2-4 percent. However, Tata Motors, HUL, Maruti Suzuki, NTPC, Bajaj Auto and HCL Technologies gained 0.5-2 percent.
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