Sensex corrects 36 points; techs under pressure

(Under arrangement with Thomas White Global Research)

Following two sessions of very impressive gains, the frontline Indian indexes have come under modest pressure in morning trading today. Technology stocks have all declined while metals are also under pressure. Most Asian markets have corrected today, despite the overnight rally in US indexes.

Sensex opened at 13733 and declined to a low of 13640. The index is trading lower by 36 points at 13660 at 11.10 AM IST.

Nifty opened at 4014 and saw a low of 3994. The index is now trading lower by 12 points at 4001.

Frontline technology stocks have corrected after two sessions of sustained gains. Satyam, the only loser among tech stocks yesterday, is the worst performer today as well and is down nearly 4 per cent.

TCS has lost over 2.6 per cent after yesterday's results announcement while Infosys and Wipro have slipped nearly 2.5 per cent each. HCL Tech has lost nearly 2 per cent.

Suzlon has corrected nearly 3 per cent after the sustained rally over the last many sessions.

Metal stocks are also under pressure after the recent gains. Sterlite and Tata Steel have lost around 1.5 per cent each while SAIL is down over a per cent.

M&M is the other major loser among Nifty stocks, with losses of over a per cent.

Cement stocks continue to be the best performers today as well. ACC is the best performer among Nifty stocks, with gains of nearly 3.5 per cent. Gujarat Ambuja has added well over 2 per cent and Grasim has gained nearly a per cent. Among other cement stocks, Ultratech Cemco is trading nearly 3 per cent higher.

Oil marketing stocks have gained ground on lower crude oil prices. BPCL has gained close to 3.5 per cent and HPCL is trading nearly 2.5 per cent higher.

Nalco has recovered from yesterday's subdued trend and has gained close to 2 per cent.

Dabur is continuing the rally and has added another 2.5 per cent.

VSNL has added nearly 1.5 per cent to yesterday's gains.

Glaxo, Reliance Energy and Siemens are the other major gainers.

Mid-caps and small caps are nearly unchanged and are trying to hold on to yesterday's closing levels. The NSE mid-cap index is now trading with very marginal gains. BSE mid-cap index has declined nearly 0.05 per cent and the BSE small-cap index has added 0.1 per cent.

Mid-cap cement stocks are also continuing the rally, in line with their large-cap counterparts. Kesoram Industries is the best performer with gains of nearly 8 per cent while JP Associates has added nearly 2.5 per cent.

C & C Constructions, Enkei Castalloys, Lumax Autotech, Welspun India, Somany Ceramics, Mudra Lifestyle, IVP and KCP Sugar are the major gainers among mid-caps and small caps.

The correction in large-cap technology stocks has spread to mid-cap technology stocks also. Polaris and Tech Mahindra have lost over 3 per cent each while Mphasis is down over 2 per cent.

Among mid-cap banking and financial stocks, Dhanalakshmi Bank has lost 5 per cent and GIC Housing Finance is down nearly 4.5 per cent.

Hindustan Dorr Oliver, Shree Precoated, Thiru Arooran Sugar and Infomedia India are the other major losers among mid-caps and small-caps.

Thomas White Global Research, part of the Thomas White International Group, publishes capital market research for global institutions and investment banks, and is headed by Thomas White, a former managing director of Morgan Stanley Asset Management.

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