Nifty ends below 5300 ahead of F&O expiry; JP Asso down 9%

Indian equity benchmarks dropped for the fourth consecutive session on Wednesday as hopes of new reforms by the government waned after the consistent parliament logjam by the opposition party BJP since the start of monsoon session.

The downtrend was despite the constant inflow of foreign money since July 27; they have bought more than Rs 9,000 crore worth of equity shares till yesterday.

The 50-share NSE Nifty closed below the 5300 level - for the first time in last three and half weeks - ahead of settlement day tomorrow. The index fell 46.80 points to close at 5,287.80. Meanwhile, the 30-share BSE Sensex lost 140.90 points to 17,490.81, weighed down by oil & gas, steel, capital goods, auto, IT and banks stocks.

Weak European cues too added fuel to the fire. France's CAC, Germany's DAX and Britain's FTSE declined more than 0.5% as traders looked nervous ahead of a meeting of central bankers at Jackson Hole, Wyoming, on Friday.

Back home, Sudarshan Sukhani of s2analytics.com advised adding more short positions. According to him, the market is giving clear and simple directions towards the downside."

Companies, which are highly debt-laden and having huge FCCB exposure got slaughtered quite badly. Jaiprakash Associates crashed 9% as traders were worried about its net debt level, a day after the cement maker raised USD 150 million in foreign currency convertible bonds (FCCBs).

Realty major DLF, telecom operator Reliance Communications and educational software services provider Educomp Solutions were down 5-8%. Jain Irrigaiton was down 2%.

Metals stocks widened losses; SAIL and Sterlite Industries fell 5-6%. Sesa Goa was down 5.5% as The Times of India reported that the Goa state pollution control board (GSPCB) has directed Cosme Costa & Sons' Sonshi mine, which is operated by Sesa Goa, to stop dumping at sites located at Vaghuriem and Codierm villages of Sattari taluka.

Private steel major Tata Steel declined 1% and aluminium maker Hindalco Industries lost nearly 3% while Jindal Steel closed with 0.3% gains.

Two-wheeler maker Bajaj Auto plunged 4% while its rival Hero Motocorp plummeted 3%. State-run oil & gas producer ONGC fell over 2% after research firms downgraded the stock due to CAG report.

Index heavyweights Infosys, Reliance Industries, Larsen & Toubro and Tata Motors were down 1-1.5%. Country's largest lenders State Bank of India and ICICI Bank slipped over 0.5%. Top telecom operator Bharti Airtel tumbled 2.7%.

The BSE Midcap Index was down 0.5% and Smallcap fell 0.85%. About two shares declined for every share advancing on the National Stock Exchange.

In the second line shares, IVRCL, Lanco Infratech, HDIL, SKS Microfinance, Manappuram Finance, Pantaloon Retail and Mastek plunged 4-10%.

HCL Infosystems lost 10% after the company denied stake sale news. Wockhardt rebounded with 7% gains.

Standard Chartered moved up 5.6% after the SEBI allowed partial flexibility for IDR investors. Deccan Chronicle gained 5% for the third consecutive session.

Indian shares were trading at day's low due to downtrend in Infosys and Reliance Industries. HDFC, Bharti Airtel, ONGC and ICICI Bank too were under pressure. On the global front, France's CAC, Germany's DAX and Britain's FTSE declined over 0.5%.

The BSE benchmark lost 119.36 points to 17,512.35 and the NSE benchmark was down 39 points to 5,295.75. Open interest put-call ratio dropped significantly to 1.14 from 1.23 ahead of expiry tomorrow.

Jaiprakash Associates crashed 9.4%, with traders citing rising concerns about net debt levels, a day after the cement maker raised $150 million in foreign currency convertible bonds (FCCB).

Software services exporter Infosys, private oil & gas producer and housing finance company HDFC were down 1% each.

Telecom operator Bharti Airtel, state-run oil & gas producer ONGC and power equipment manufacturer BHEL lost 2-3%.

Shares of Bajaj Auto, Sterlite Industries, Sesa Goa, DLF and SAIL tumbled 4-6%.

Country's largest lenders State Bank of India and ICICI Bank fell 0.5% each. Tata Power and Jindal Steel outperformed with 1.5% gains.

Traders' favourite SKS Microfinance, Manappuram Finance, Karuturi Global, Indiabulls Real, Arvind and Gemini Communications fell 5-7%.

Stocks at 52-week low: Canara Bank, Bank of India, Indian Oveseas Bank, Suzlon Energy, Reliance Communications, Punjab National Bank, NIIT, Adani Power, Opto Circuits, Chambal Fertiliser and Subex were down 1-5%.

The 50-share NSE Nifty broke the 5,300 level for the first time in last 11 trading sessions due to weakness in European markets. France's CAC, Germany's DAX and Britain's FTSE declined 0.5% each.

The BSE benchmark fell 130 points to 17,502.04, weighed down by oil & gas, steel, banks, auto and capital goods stocks. The NSE benchmark was down 40.50 points to 5,294.10.

Jaiprakash Associates retained its top position in the selling list since early trade with a loss of 7.5%. The company has launched FCCB issue of upto USD 200 million today.

Sesa Goa, a subsidiary of London-listed Vedanta Resources plunged 5% as The Times of India reported that the Goa state pollution control board (GSPCB) has directed Cosme Costa & Sons' Sonshi mine, which is operated by Sesa Goa, to stop dumping at sites located at Vaghuriem and Codierm villages of Sattari taluka.

Metals stocks have been under pressure since yesterday. SAIL and Sterlite Industries crashed nearly 5%. Hindalco Industries, which rebounded in morning trade, shed more than 2%. Tata Steel was down 2%.

Two-wheeler maker Bajaj Auto fell nearly 4% while its rival Hero Motocorp was down 2%. Capital goods majors Larsen & Toubro and BHEL were down 1% and 3.5%, respectively.

State-run oil & gas producer ONGC dropped over 2.5%, extending losses for second session today after the CAG report. Index heavyweight Reliance Industries went down 0.8%.

Country's largest lenders State Bank of India, ICICI Bank, and housing finance company HDFC slipped 0.5-0.8%.

Power producer Tata Power rallied 2.6%. Shares of Wipro and Jindal Steel gained more than 1%.

The broader markets went down 0.5% as about two shares declined for every share advancing on the National Stock Exchange.

The BSE Sensex and NSE Nifty remained under pressure for the fourth consecutive session today due to downward journey auto, capital goods and steel stocks. Bajaj Auto and Sterlite Industries topped the selling list with more than 3% losses whereas private power producer Tata Power was the top gainer with 2.65% gains.

The BSE benchmark lost 93 points to 17,539 and the NSE benchmark dropped 31 points to 5,304.

The August futures and options contracts will expire on Thursday. Amit Gupta, ICICI Direct says the expiry should be around 5,350 on the Nifty.

State-run oil & gas producer ONGC tanked more than 2% after the Comptroller and Auditor General has pulled up the company for not placing desired emphasis on discovering oil and gas and being tardy in monetizing its discoveries.

Software services exporter Infosys was down 0.76% while its rival Wipro gained more than 1%. Housing finance company HDFC lost 0.6%.

State-owned power equipment maker BHEL extended losses to 2.6%. Engineering and construction major Larsen & Toubro fell 0.5%.

Among auto stocks, commercial vehicle maker Tata Motors slipped 1% and two-wheeler major Hero Motocorp tumbled 1.7%.

Public sector lender State Bank of India and private oil & gas producer Reliance Industries were down 0.2% each.

Private sector lender HDFC Bank and drug producer Cipla gained more than 0.8%.

Equity benchmarks widened losses, weighed down by auto, technology and capital goods stocks. Index heavyweights State Bank of India and Reliance Industries erased gains while ONGC shed another 2% on CAG report.

The 30-share BSE Sensex went down 55 points to 17,577.08 and the 50-share NSE Nifty declined 16 points to 5,318.20.

Private power producer Tata Power rallied 3% as Maharashtra Electricity Regulatory Commission increased fuel adjustment cost ceiling to 20% from 10%. Therefore, the electricity bills are likely to go up from next month in Maharashtra.

Drug manufacturer Cipla and private steel & power producer JSPL gained 1.5% each. Private sector lender HDFC Bank was up 0.6% while its rival ICICI Bank was flat.

Two-wheeler majors Hero Motocorp and Bajaj Auto were down 1% and 3%, respectively. Top commercial vehicle maker Tata Motors fell 1%.

Software services exporters TCS and Infosys declined 0.6% and 1%, respectively. Housing finance company HDFC and state-run power producer NTPC lost 0.5% each.

Engineering and construction major Larsen & Toubro slipped 0.5% and state-owned power equipment manufacturer BHEL tanked nearly 2%.
 
In the second line shares, Wockhardt, Phoenix Mills, Welspun Corp, Standard Chartered and Motilal Oswal gained 4-6% whereas Glodyne Tech, Opto Circuits, Bajaj Finserv, Arvind and Educomp Solutions lost 3-5%.

About 1085 shares advanced while 1187 shares declined on the Bombay Stock Exchange.

The BSE Sensex and NSE Nifty were trading marginally lower due to weakness in technology, fast moving consumer goods, auto and steel stocks. The buying in banks stocks, Reliance Industries and L&T has limited the downside.

State-owned oil & gas producer ONGC fell nearly 2% as the Comptroller and Auditor General raised concerns on the company saying it did not complete work in 74% of blocks and it made lesser discoveries versus Reliance and GSPC. Yesterday the stock was down 2%.

The BSE benchmark declined 46.21 points to 17,585.50 and the NSE benchmark was down 14.45 points to 5,320.15. The broader markets remained flat too.

Infosys, India's No. 2 IT services exporter fell over 1% on profit booking while its rival TCS went down 0.4%.

Commercial vehicle major Tata Motors tumbled 2% and two-wheeler maker Bajaj Auto lost 1.6%. Utility vehicle maker Mahindra & Mahindra was down 0.7% whereas Maruti gained 0.5%.

FMCG majors ITC and Hindustan Unilever were down around 0.5%. State-owned power equipment manufacturer BHEL slipped 1%.

Country's largest lenders State Bank of India, ICICI Bank and HDFC Bank were up between 0.5% and 0.75%. Engineering and construction major Larsen & Toubro was up 0.5% and index heavyweight Reliance Industries rose 0.6%.

Shares of Hindalco Industries and Jindal Steel rebounded with 1% gains. Private power producer Tata Power went up 1.5% after the MERC increased fuel adjustment cost (FAC) ceiling to 20% from 10%. Electricity bills are likely to go up from next month in Maharashtra.

Indian shares opened listless in early trade on Wednesday due to lacklustre trade in Asian markets and ahead of expiry tomorrow. Every market across the globe has been waiting for decisive move from central bankers' meet at Jackson Hole on Friday to solve ongoing Eurozone credit crisis.

The 30-share BSE benchmark lost 14 points to 17,617.54 and the 50-share NSE Nifty fell 5.5 points to 5,329.15.

Private power producer Tata Power was up over 1% as MERC increased fuel adjustment cost (FAC) ceiling to 20% from 10%. Hence, electricity bills are likely to go up from next month in Maharashtra.

Power Grid, Cipla, Sun Pharma, Bank of Baroda, PNB, JSPL, Hindalco Industries, Reliance Industries, ITC, L&T, ICICI Bank and SBI were supporting the market.

JP Associates tanked nearly 6%. The company has launched FCCB issue of upto USD 200 million.

Sesa Goa, Tata Steel, Sterlite, Tata Motors, Bajaj Auto, Hero Motocorp, M&M, ONGC, Infosys and TCS were under pressure in early trade.

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

In the second line shares, Pantaloon Retail plunged over 2% as The Times of India reported that AV Birla Nuvo is looking to rework Pantaloon's deal value post more than anticipated decline in first quarter results. Valuations dip could be in the range of 5-10%. AV Birla had agreed to buy 50% stake for Rs 800 crore and Rs 800 crore of debt.

Tata Sponge shot up 6% after Tata Steel increased stake in the company by 11.26% to 51%, which was post the open offer.

Jain Irrigation plunged nearly 4%, which has been falling consistently since last week.

IFCI was down another 1.5%. Adani Enterprises, HDIL and IVRCL were down 0.5-1%.

S Kumars jumped 2.3%. Kingfisher Airlines lost 4% on employees' strike news.

United Breweries rallied over 2% as the company will seek shareholders' nod for amalgamation with Scottish & New Castle (India) in a meeting on September 24. UB Holdings and United Spirits too were up 2%.

Escorts was up 2% as the company will hike tractor prices by 2-3% from September 1.