Indian Stock Market

The
Sensex had another weak outing as selling pressure took a fairly heavy toll
of some bank, realty and capital goods stocks amid increasing concerns over
declining growth. Global markets too did not provide any positive cues as most
the bourses languished in the red today.

A drop in global crude prices does not offer the government any immediate scope for reduction in domestic fuel prices, although India’s crude basket price has fallen over eight per cent in two months.

Due to heavy selling in DLF (down 3.45%), HDFC (down 2.4%), Reliance Infrastructure (down 2.4%), Tata Power (down 2.2%), Reliance Communications (down 1.85%), Hindalco (down 1.9%), Larsen & Toubro (down 1.7%) and Jaiprakash Associates (down 1.4%) and a few other blue chip stocks, the Sensex has slipped to 15,094.58, down 117.55 points or 0.77% from its previous closing mark.

Oil firmed on Wednesday ahead of US weekly oil data, which is expected to show drops in crude and gasoline inventories.

The
market, which had bounced back into the positive zone around noon before it
tumbled once again due to lack of support at higher levels, remains extremely
volatile this afternoon with stock prices fluctuating in a highly erratic manner.

The extension of the moratorium on steel price hike beyond the first week of August seems to be testing the patience of steel majors. Once the extended moratorium expires, steel producers may increase prices by 5%.

Concerns over slowing economic growth continue to haunt investor sentiment on the major Indian bourses today. As prices of a host of blue chip stocks declined sharply following a strong round of selling this afternoon, the Sensex slipped from the positive territory to which had bounced back in early afternoon trade.

It has been a highly listless outing for several large and mid cap stocks today with investors appearing none too keen on building up positions in a significant way. With weak global markets and concerns over declining growth haunting the sentiment, not many stocks seem to be strong enough to hold on at higher levels today.

After moving in a tight band for around an hour, the Sensex has rallied smartly into the positive territory in early noon trade thanks to some spirited buying in old and new economy stocks.

The mood remains quite cautious in late morning trade and the Sensex, which had bounced back strongly from lower levels is moving in a very narrow band at present. At 15,145.08, the barometer is down with a loss of 67.05 points or 0.44%.

Thanks
to strong buying at several blue chip counters, the Sensex has rebounded sharply
from its lower levels and is down by just around 50 points at 15,161.56 at present.
The Nifty is down with a loss of 0.31% or 13.95 points.

Bullion markets in Ahmedabad and Mumbai are running out of stock of 100 gm gold bars due to limited supply. With prices falling more than Rs500 in a single day, traders rushed to banks to buy 100 gm gold bars. Since stock was limited, bookings have started.

Tata Capital said on Wednesday it had signed a memorandum of understanding with Mitsubishi UFJ Securities Co for investment banking, global offerings of Indian equities and other services.

Led by key bank and automobile stocks, the market took a trip down south again due to weak global sentiment amid declining growth this morning. Metal stocks, which had gone down sharply yesterday, have posted smart gains on renewed buying in the sector.