Sensex closes 230 pts down on EU concerns, profit booking

The profit booking continued for the second consecutive session on Monday especially after the Nifty hit 5800 and Sensex touched 19000 levels last week. The fall in global markets on weak economic growth and endless Eurozone concerns also dented sentiment throughout the session.

The 30-share BSE benchmark dropped 229.48 points or 1.21 percent to close at 18,708.98, weighed down by oil & gas, capital goods, technology, banking and auto stocks.

Meanwhile, the 50-share NSE benchmark ended below the 5700 level for the first time in last six sessions; it was down 70.95 points or 1.23% to 5,676 ahead of corporate earnings.

According to fundamental analysts, the today's fall was attributed to weak global cues while technical analysts believe the fall was inevitable as benchmarks rallied quite sharply since last month on strong inflow of foreign money.

Saurabh Mukherjea, head of equities at Ambit Capital says he would not attribute this to national factor. "This is more of a global concern. I don't think the government has anything done wrong in the couple of months to precipitate today's correction," he adds.

He expects more reforms coming in the next few weeks.

Indian rupee also continued downtrend for the second straight day, falling by 1.05 percent or 55 paise to 52.40 against the US dollar (at 15:31 hours IST).

On the global front, France's CAC and Germany's DAX dropped 1.35 percent each on concerns over political and economic uncertainty in Greece and Spain despite the launch of euro zone's permanent bailout fund, the European Stability Mechanism (ESM).

Citi's Jurgen Michels says it is highly unlikely that Spain will be able to fund itself  on relatively low rates and with no improvement in the Greek situation, he adds that the IMF and the European nations are locked in a dispute over contributing to ease the debt scenario in Greece.

Asian markets too closed 0.5-1 percent lower despite strong US jobs data.

Back home, index heavyweight Reliance Industries crashed 4.51 percent on downgrade by foreign research firm.  Morgan Stanley has downgraded the stock to underweight, citing valuations, lack of near-term triggers and expectation of weaker refining and petrochemical margins. The company will declare its second quarter numbers of FY13 on October 15.

Realty major DLF plunged over 7 percent on concerns over corporate governance issue.

Telecom stocks like Bharti Airtel, Reliance Communications, Tata Teleservices and Idea Cellular gained 2-4.5 percent after Law Minister Salman Khurshid (after a meeting of empowered group of ministers) said one-time spectrum fee would be charged beyond 4.4 MHz. "One-time spectrum fee would be on prospective basis and not be charged on retrospective basis," he said.

Engineering majors Larsen & Toubro and BHEL were down 3-3.44 percent.

Commercial vehicle maker Tata Motors and private power producer Tata Power fell over 2.5 percent.

Country's largest lender State Bank of India tanked 3 percent while its rival ICICI Bank was down 1.4 percent.

Infosys, India's second largest software services exporter lost 1.5 percent ahead of September quarter earnings that will be announced on Friday. TCS and Wipro were down 1-2 percent.

State-run oil & gas producer ONGC declined 2 percent and aluminium major Hindalco tumbled 3.5 percent.

Drug producer Sun Pharma topped the buying list with 3.67 percent gains while its rival Cipla rose 0.9 percent. Cigarette major ITC was up 0.65 percent.

In the second line shares, UB group stocks like United Spirits, Kingfisher Airlines and UB Holdings fell 6-8 percent. The Directorate General of Civil Aviation has issued showcause notice to Kingfisher.

Declining shares outnumbered advancing by a ratio of 830 to 627 on the National Stock Exchange.

The BSE Sensex and NSE Nifty were down one percent each following weak global cues and due to profit booking. Telecom stocks were in bull grip after Law Minister Salman Khurshid (after a meeting of empowered group of ministers) said one-time spectrum fee would be charged beyond 4.4 MHz. "One-time spectrum fee would be on prospective basis and not be charged on retrospective basis," he said.

Telecom minister Kapil Sibal said the Cabinet would take final decision on one-time spectrum fee. "We have resolved all issues before EGoM. We will take one-time spectrum fee to cabinet on October 16," he said.

Bharti Airtel was up 3 percent while Idea Cellular gained 5 percent. Reliance Communications rallied 4 percent while Tata Teleservices jumped nearly 6 percent.

The 30-share BSE benchmark lost 170 points to 18,768.72 and the 50-share NSE benchmark was down 56 points to 5,690.95. The Indian rupee fell by 50 paise to 52.35 against the US dollar.

Index heavyweight Reliance Industries plunged 4 percent while its rival ONGC was down over 1 percent.

Country's largest lenders State Bank of India and ICICI Bank were down 2.4 percent and 1 percent, respectively.

Capital goods majors Larsen & Toubro and BHEL tanked 2.4-2.7 percent. Commercial vehicle maker Tata Motors and private power producer Tata Power fell 2.4 percent each.

Software services exporters TCS, Infosys and Wipro lost 0.7-2 percent. However, drug producer Sun Pharma rallied 3.5 percent.

The NSE Nifty has been in a profit booking mode since Friday, especially after the index hit a 5800 level last week. The index dropped 61.65 points to 5,685.30, weighed down by banking, auto, oil & gas exploration, capital goods and technology stocks.

The 30-share BSE benchmark slipped 184 points or 1 percent to 18,754.25. The Indian rupee fell by 39 paise to 52.24 against the US dollar.

European markets were trading lower with concerns over political and economic uncertainty in Greece and Spain despite the launch of euro zone's permanent bailout fund, the European Stability Mechanism (ESM). France's CAC and Germany's DAX were down 1.2 percent while Britain's FTSE declined 0.8 percent.

Back home, private oil & gas producer Reliance Industries and aluminium major Hindalco Industries tumbled 3.6 percent each.

Engineering conglomerate Larsen & Toubro and private power producer Tata Power were down 2.7 percent each.

Country's largest lender State Bank of India, commercial vehicle maker Tata Motors, state-run power equipment maker BHEL and software services exporter Wipro went down 2-2.5 percent.

Top software services exporters TCS and Infosys fell 0.8-1.4 percent. Private sector lender ICICI Bank was down 1.2 percent.

Drug producer Sun Pharma rallied 3.5 percent while shares of ITC, Bharti Airtel and NTPC gained 0.8-1.2 percent.

The market breadth, which was positive in the first half of trade, turned in favour of declines. About 621 shares advanced while 809 shares declined on the National Stock Exchange.

The BSE Sensex lost over 100 points following weak opening of European markets. France's CAC, Germany's DAX and Britain's FTSE fell 0.7-1 percent as investors remain worried about weak global economic growth and September quarter earnings despite strong US jobs data.

The 30-share BSE benchmark was down 142.23 points to 18,796.23 and the 50-share NSE benchmark fell 49.10 points to 5,697.85, weighed down by technology, banking, capital goods and oil & gas exploration stocks.

Earnings' season will kick off this week with Infosys announcing its numbers on Friday. The stock was down over 1 percent. Emkay Global Financial Services expects Infosys to deliver a 3% QoQ growth for September 2012 quarter, which is in line with implied asking rate for it's FY13 revenue growth outlook of 'atleast 5% YoY growth'.

Index heavyweight Reliance Industries extended losses to 3.33 percent while capital goods majors L&T and BHEL fell 2-2.5 percent.

Country's largest lender State Bank of India dropped 2 percent while its rival ICICI Bank was down 1.3 percent.

Commercial vehicle maker Tata Motors and state-run oil & gas producer ONGC slipped over 1 percent. Shares of Hindalco, Wipro and Tata Power tanked 2-3 percent.

Realty firm DLF crashed nearly 7 percent as the company's independent directors are under scrutiny over Robert Vadra deal.

Drug producer Sun Pharma retained its top position in the buying list with 4 percent gains.

Shares of ITC, HDFC, Bharti Airtel, NTPC, Dr Reddy's Labs, Tata Steel, Cipla and Sterlite Industries were up 0.5-1 percent.

Indian shares extended losses due to further fall in Reliance Industries and Infosys. ICICI Bank, L&T and SBI too were down further. But the broader markets outperformed benchmarks with BSE Midcap and Smallcap indices falling 0.5 percent each. Advancers outnumbered decliners by a ratio of 1361 to 1026 on the BSE.

The 30-share BSE Sensex declined 75.38 points to 18,863.08 and the 50-share NSE Nifty fell 28 points to 5,718.95.

After hitting 5800 last week, the Nifty has been in a consolidation mode. Hemant Thukral of Aditya Birla Money does not expect Nifty to breach 5,850 levels in a hurry. The market might consolidate between 5,690 and 5,840 levels, he said.

Drug producer Sun Pharma topped the buying list with 4 percent gains while its rivals Cipla and Dr Reddy's Labs gained 1-1.8 percent.

Cigarette major ITC and housing finance company HDFC rose over 0.7 percent.

Country's largest telecom operator Bharti Airtel rallied 1.5 percent. Department of Telecommunications has received Attorney General (AG) opinion on one time spectrum fee. Empowered group of ministers will meet today to discuss one time spectrum fee.

Steel stocks were on buyers' radar. Tata Steel, Sterlite Industries and Jindal Steel were up 1-1.4 percent.

Private oil & gas producer Reliance Industries tanked over 2 percent. Power equipment maker BHEL and power producer Tata Power lost 2 percent too.

Software services exporter Infosys slipped 1 percent ahead of earnings that scheduled for Friday. Top lenders State Bank of India and ICICI Bank fell 1 percent each. Engineering conglomerate Larsen & Toubro plummeted 1 percent too.

In the second line shares, DB Realty, Sun Pharma Advanced, KSK Energy Ventures, Bajaj Electricals and Aurobindo Pharma rallied 4-8.5 percent while Tulip Telecom, Tuni Textile, HT Media, Apollo Tyres and Motilal Oswal tumbled 2-5 percent.

Indian equity benchmarks remained marginally lower, weighed down by capital goods, banking and oil & gas exploration stocks. However, the drug producer Sun Pharma topped the buying list with 3 percent gains.

Asian markets continued to trade lower with Shanghai, Hang Seng, Kospi, Taiwan Weighted and Straits Times falling between 0.6 percent and 0.9 percent. Back home, the 30-share BSE Sensex declined 38 points to 18,900.53 and the 50-share NSE Nifty lost 17 points to 5,730.15.

Index heavyweight Reliance Industries fell 2 percent. Country's largest lenders State Bank of India and ICICI Bank slipped nearly 1 percent.

Engineering and construction major Larsen & Toubro was down 0.9 percent. State-run power equipment maker BHEL and private power producer Tata Power tanked 2 percent each.

Telecom operator Bharti Airtel and drug producer Cipla gained 1.35 percent each.

Cigarette major ITC, housing finance company HDFC, steel producer Tata Steel, two-wheeler maker Bajaj Auto and car maker Maruti Suzuki went up 0.5-0.9 percent.

Realty major DLF tanked 4 percent despite clarification by the company over Robert Vadra deal issue.

The broader markets outperformed benchmarks with BSE Midcap and Smallcap indices rising 0.6 percent each. Advancing shares outnumbered declining by a ratio of 1315 to 824 on the BSE.

The BSE Sensex fell marginally in early trade on Monday following weakness in Asian markets. Globally investors remain cautious about the weak economic growth and September quarter earnings despite strong US jobs data. Shanghai, Hang Seng and Kospi slipped 0.7 percent each while Straits Times and Taiwan Weighted declined 0.6 percent each.

The BSE benchmark dropped 55.65 points to 18,882.81 and the NSE benchmark went down 22 points to 5,724.95. Even the Indian rupee depreciated 36 paise to 52.21 against the US dollar.

Realty major DLF plunged 3.5 percent on Robert Vadera deals.

BHEL lost 2.5 percent due to profit booking.

Bank of Baroda, ICICI Bank, Reliance Industries (ahead of earnings next week), L&T, Sesa Goa, HUL, ITC, JP Associates, Reliance Infrastructure, Tata Power, Ambuja Cements and ACC were under pressure.

Infosys and TCS were up over 0.5 percent ahead of Infosys' second quarter earnings that will be announced on Friday. Bharti Airtel, HDFC, ONGC and Sun Pharma gained 0.5-1 percent.

The broader markets were flat as the market breadth was neutral.

In the second lines shares, Kingfisher Airlines plunged 5% after Directorate General of Civil Aviation issued showcause notice to the company.

UB Holdings was down 1.7 percent. GMR Infra, Adani Enterprises and Tata Power were down 1.7 percent each.

Bharati Shipyard shot up 6.6 percent. Everonn Education, Subex, LIC Housing Finance and Dewan Housing were up 2-3.5 perecnt.

Geometric went up 2.5 percent. Rakesh Jhunjhunwala has acquired 21.25 lakh shares (3.4% stake) of the company from September 25 to October 5.

Emkay Global shed another 10 percent as the company suffered huge loss due to erroneous orders punched by its member on Friday.