Domestic frontline equity indices have extended their unimpressive run in the afternoon session of trade as investors lacked conviction to pile up hefty positions amid daunting global developments while there were absolutely no significant triggers on the domestic front to lift the sentiments. The European markets opened on a weak note, pounded by grim US payrolls data, higher than expected inflation data from China and continued fears over the spread of euro-zone debt crisis while the Asian peers too exhibited somber trends, undermining mood of local investors. Back home, investors squared off hefty positions from the Information Technology bellwether Infosys ahead of its first quarterly earnings announcement scheduled to come on July 12. Other IT stocks too slipped under the selling pressure dragging IT index by 1.76%. The metal pocket too continued to bear the brunt of profit booking a day after a panel of ministers approved the new mining bill. However, some gains in the defensive FMCG and Healthcare, Consumer Durable, Oil & Gas and rate sensitive Automobile counters prevented the benchmarks from drifting below the important psychological 5,600 and 18,750 levels.
However, the broader markets traded just below the neutral line, trying hard to break back into the green terrain and outclass their larger peers. The bourses slipped on weak volumes while the market breadth on BSE was in favor of declines in the ratio of 1210:1335 while 127 scrips remained unchanged.
The BSE Sensex is currently trading at 18,750.69 down by 107.35 points or 0.57% after trading as high as 18,843.97 and as low as 18,738.32. There were 9 stocks advancing against 21 declines on the index.
The broader indices were trading on a soft note; the BSE Mid cap index eased by 0.19% and Small cap edged down by 0.16% respectively.
On the BSE sectoral space, FMCG up 0.74%, Consumer Durables up 0.70%, Oil & Gas up 0.32%, Auto up 0.21% and Healthcare up 0.08% were the major gainers, while IT down 1.76%, Teck own 1.54%, Metal down 1.30%, Bankex down 1.20% and Realty down 1.07% were the major losers on the index.
The top gainers on the Sensex were M&M up by 1.68%, ONGC up by 1.45%, ITC up by 1.37%, R Com up 0.87% and Sterlite Inds up 0.40%.
On the flip side, Hindalco Inds down by 4.25%, Infosys down 2.46%, Maruti Suzuki down 1.41%, BHEL down 1.36% and JP Associates down by 1.26% were the major losers on the index.
Meanwhile, India's domestic passenger car sales grew by 1.62% for June, this is the slowest pace of growth in more than two years, the second-fastest growing auto market is experiencing moderation in growth due to the increased interest rates by Reserve Bank of India, increasing fuel prices and increased cost of raw materials. Car sales grew by 1.62% to 143,370 units in June from 141,087 units in same month previous year, however, commercial and motorcycles registered a growth of 17.83% to 62,009 units and 14.97% to 934,975 units respectively.
As per the data released by the Society of Indian Automobile Manufacturers (SIAM), motorcycle sales in the country grew by 14.97% during the month to 825,323 units from 717,859 units in the corresponding month last year. Total two-wheeler sales increased by 14.59% to 10,71,425 units last month from 934,975 units in June, 2010.
Sales of commercial vehicles jumped by 17.83% to 62,009 units in the month under review from 52,627 units in the year-ago period. Total sales of vehicles across categories registered a growth of 12.84% to 13,62,984 units in June, as against 12,07,934 units in the same month last year, SAIM added.
India's auto sector's growth is largely led by the middle class people who mainly depend on loans from banks for purchases, however, since March 2010, with RBI increasing its key policy rates for ten times, to curb high inflation, the demand for vehicles has seen its slowest pace. These increased interest rates has hampered the growth of auto sector which is clearly visible from decreasing trend in total sales of vehicles which had reduced to 12.84% from 22.2% in April.
The S&P CNX Nifty is currently trading at 5,622.35, lower by 38.30 points or 0.68% after trading as high as 5,652.90 and as low as 5,620.20. There were 14 stocks advancing against 36 declines on the index.
The top gainers of the Nifty were M&M up by 1.89%, Ranbaxy up by 1.52%, ITC up by 1.35%, ONGC up by 1.06% and Sun Pharma up by 0.96%.
Hindalco down by 4.09%, Axis Bank down 2.68%, Infosys down 2.47%, Power Grid down 2.20% and SAIL down 2.16% were the major losers on the index.
Asian markets are exhibiting somber trends as Hang Seng plunged 1.29%, Jakarta Composite declined 0.40%, KLSE Composite slid by 0.60%, Nikkei 225 shed 0.67%, Straits Times shaved off 0.79%, Seoul Composite sank by 1.06% and Taiwan Weighted drifted by 0.96%.
On the flipside, only Shanghai Composite gained 0.21%.
The European markets have opened on a bleak note as France's CAC 40 declined 0.76%, Germany's DAX shed 0.66% and London's FTSE remained at unchanged levels 0.22%
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