MUMBAI: The markets are reeling under selling pressure as a weak rupee and weak European markets weighed on sentiment. Technology, capital goods, auto and banks led the decline while the FMCG and realty sectors showed some resistance.
At 02:55 p.m., the Sensex was at 16,626.44, down 290 points, or 1.74 percent. It touched a high of 16,918.31 and a low of 16,726.56 in today's trade.
The Nifty was at 5,024.90, down 89.25 points, or 1.75 percent. It has touched a high of 5,119.95 and a low of 5,055.45 in trade today.
The rupee couldn't hold on to intraday gains and slipped and breached 53 per dollar mark. The partially convertible rupee was at 53.17 per dollar, down 25 paise, against its previous close of 52.91.
The dollar/rupee will fight the fundamental challenges and may stabilise below the Rs 54 per dollar level this week as risk aversion in the global markets that pushed up the dollar also led to a sharp fall in crude prices, easing worries about the country's widening trade deficit, an IIFL report stated.
"Deep oversold hourly oscillators have rolled bullish, but daily oscillators continue to move lower indicating a pullback within a short-term downtrend. The Nifty finds stiff resistance at the earlier support area of 5,170/5,180 and is unlikely to break through in a hurry, suggesting a fallback to the lows of 5,000 and possibly towards the 61.8% retracement of the Dec-Feb rally at 4,950. One can look to write 5,200 calls as a short-term trading strategy," an Edelweiss report said.
The BSE Midcap Index was up 0.02 percent and the BSE Smallcap Index edged 0.11 percent higher.
Among sectoral indices, the BSE IT Index fell 2.82 percent, the BSE Capital Goods Index declined 1.94 percent, the BSE Auto Index was 1.31 percent lower and the BSE Bankex slipped 1.21 percent.
Shares of IT companies were under pressure after US-based Cognizant Technology Solutions lowered its full-year forecast, citing weak demand from North American financial services clients.
TCS (4.92%), HCL Tech (4.01%), Jaiprakash Associates (3.52%), BHEL (3.11%) and Wipro (2.68%) are among the top Nifty losers.
JPMorgan downgraded Tata Consultancy Services to 'neutral' from 'overweight', saying the stock price was now "fully valued" at the current 19 times forward fiscal 2013 earnings. The TCS stock was down 4.99 percent.
Coal India (2.65%), GAIL (2.43%), DLF (2.21%), ITC (1.67%) and Sun Pharma (1.32%) are among the index gainers.
As per provisional data from stock exchanges, foreign institutional investors sold shares worth Rs 630.81 crore on Monday. They bought shares worth Rs 1,224.82 crore between April 28 and May 4, 2012.
The market breadth was positive on the NSE with 734 gainers against 704 losers.
The European markets opened in the red on concerns of a fallout from Greece's weekend elections. The CAC 40 was down 1.93 percent, the DAX was 0.71 percent lower and the FTSE 100 slipped 0.32 percent.
(Source- http://economictimes.indiatimes.com)
At 02:55 p.m., the Sensex was at 16,626.44, down 290 points, or 1.74 percent. It touched a high of 16,918.31 and a low of 16,726.56 in today's trade.
The Nifty was at 5,024.90, down 89.25 points, or 1.75 percent. It has touched a high of 5,119.95 and a low of 5,055.45 in trade today.
The rupee couldn't hold on to intraday gains and slipped and breached 53 per dollar mark. The partially convertible rupee was at 53.17 per dollar, down 25 paise, against its previous close of 52.91.
The dollar/rupee will fight the fundamental challenges and may stabilise below the Rs 54 per dollar level this week as risk aversion in the global markets that pushed up the dollar also led to a sharp fall in crude prices, easing worries about the country's widening trade deficit, an IIFL report stated.
"Deep oversold hourly oscillators have rolled bullish, but daily oscillators continue to move lower indicating a pullback within a short-term downtrend. The Nifty finds stiff resistance at the earlier support area of 5,170/5,180 and is unlikely to break through in a hurry, suggesting a fallback to the lows of 5,000 and possibly towards the 61.8% retracement of the Dec-Feb rally at 4,950. One can look to write 5,200 calls as a short-term trading strategy," an Edelweiss report said.
The BSE Midcap Index was up 0.02 percent and the BSE Smallcap Index edged 0.11 percent higher.
Among sectoral indices, the BSE IT Index fell 2.82 percent, the BSE Capital Goods Index declined 1.94 percent, the BSE Auto Index was 1.31 percent lower and the BSE Bankex slipped 1.21 percent.
Shares of IT companies were under pressure after US-based Cognizant Technology Solutions lowered its full-year forecast, citing weak demand from North American financial services clients.
TCS (4.92%), HCL Tech (4.01%), Jaiprakash Associates (3.52%), BHEL (3.11%) and Wipro (2.68%) are among the top Nifty losers.
JPMorgan downgraded Tata Consultancy Services to 'neutral' from 'overweight', saying the stock price was now "fully valued" at the current 19 times forward fiscal 2013 earnings. The TCS stock was down 4.99 percent.
Coal India (2.65%), GAIL (2.43%), DLF (2.21%), ITC (1.67%) and Sun Pharma (1.32%) are among the index gainers.
As per provisional data from stock exchanges, foreign institutional investors sold shares worth Rs 630.81 crore on Monday. They bought shares worth Rs 1,224.82 crore between April 28 and May 4, 2012.
The market breadth was positive on the NSE with 734 gainers against 704 losers.
The European markets opened in the red on concerns of a fallout from Greece's weekend elections. The CAC 40 was down 1.93 percent, the DAX was 0.71 percent lower and the FTSE 100 slipped 0.32 percent.
(Source- http://economictimes.indiatimes.com)
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