28 July 2011

Weak global cues drag Nifty down to 5500


The benchmark Nifty started the trade below the 5500 mark on expiry day, reacting to weak global cues. US debt ceiling talks failed to make progress yesterday; there were reports that debt deadline may be postponed to August 10 from August 2.
The 30-share BSE Sensex was trading at 18,283, down 149 points and the 50-share NSE Nifty lost 48 points to 5,498.
N Krishnan of CLSA said he continued to remain cautious on the markets amid earnings downgrades. He has maintained March 2012 Sensex target of 19,500 offering a 5% upside.
Among frontliners, HCL Tech, Sterlite Industries, Wipro, Infosys, SBI, IDFC, PNB, Jaiprakash Associates, HUL, Bharti Airtel, L&T, DLF and Reliance Industries were putting pressure on the market.
However, ONGC and ITC gained marginally ahead of numbers today.
Kotak Mahindra Bank too was up.
Idea Cellular lost 1% as Providence sold 8.34 crore shares (9.9% equity) of the company via block deal.
The CNX Midcap fell 43 points to 8,071.
Results reaction: EID Parrry was up 1.6%. Manappuram Finance and Karur Vysya Bank declined over 1.2%.
Cox & Kings went up over 2% post company bought UK-based Holidaybreak for £ 312 million.
SKS Microfinance tumbled 7%.
Lanco Infratech, HCC (ahead of numbers) and GVK Power too were down 1-2%.

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