The market, which witnessed a recovery from the lows in the last hour of trade on buying in select blue chips, still settled in the negative for the third consecutive day. Disruption of Parliament proceedings for the sixth day in a row, which has led to a halt in the reforms process, is making investors restless. The Sensex slipped 47.10 points to close at 17,631.71 and the Nifty declined 15.65 points to 5,334.60.
Heavy selling pressure could be observed in Metal stocks. Sun Pharma ended up 1.70%; bouncing back 2.4% from day’s low on the news that its subsidiary Caraco has received USFDA clearance to resume operations at its manufacturing facility in US.
The US markets showed a lack of direction throughout the trading day on Tuesday, extending the lackluster performance that was seen in the previous session. Traders largely remained on the sidelines ahead of the remarks by Federal Reserve Chairman who is scheduled to speak on Friday. On the macro front, while S&PR's report showed an unexpected increase in home prices, a Conference Board report showed a notable deterioration in consumer confidence. The Dow Jones industrial average was down 21.68 points, or 0.17 percent, at 13,102.99. The Standard & Poor's 500 Index slipped 1.14 points, or 0.08 percent, at 1,409.30. The NASDAQ Composite Index edged down 3.95 points, or 0.13 percent, at 3,077.14.
Asian shares were trading mixed on Wednesday ahead of the conference of central bankers in Jackson Hole, Wyoming and a European Central Bank policy meeting next week. Japan's Nikkei 225 index was trading 0.06 per cent higher at 9,038.75 and Hong Kong 's Hang Seng index was trading lower at 19,801.12, down 0.06 per cent. South Korea's Kospi index was trading 0.12 per cent higher at 1,918.45. China 's Shanghai index was trading 0.43 per cent lower at 2,064.12.
Indian shares opened listless in early trade on Wednesday due to lackluster trade in Asian markets and ahead of derivatives 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.
Metal stocks came under selling pressure for a second day in a row.
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%.
Other Economic and Political News:
- 52 NELP blocks stuck for environment, defense clearances: Government
- Land Acquisition Bill referred to Group of Ministers
- DTC requires a fresh look: Chidambaram
- L&T Construction wins orders worth Rs.1,000cr
- JSPL gets nod to buy Canada firm for Rs.600cr
- IL&FS Engineering wins contracts worth Rs.331cr
- Escorts to hike tractor prices by 2%-3% from September 1, 2012
Indian markets started the week on negative note today. The markets ended down 0.60% today on account of negative developments on national political front. The opposition parties did not allow the normal functioning of parliament (monsoon session) for the second week. The BJP lead opposition is demanding PM resignation on account of alleged coal scam. This may lead to the further policy inaction by the government. The 30-share BSE benchmark fell 104.40 points to close at 17,678.81. The 50-share NSE benchmark managed to hold the 5350 level amid selling pressure, which declined 36.45 points to 5,350.25.
Country's largest lenders State Bank of India and ICICI Bank tanked 2.6% and 2%, respectively. Axis Bank, Punjab National Bank (touched a new 52-week low of Rs 676.05) and Bank of Baroda were down 3-4.5%.
The US stocks ended Monday's session on a mixed note as investors remained cautious ahead of the speeches from Ben Bernanke on Friday and Mario Draghi on Saturday at the Federal Reserve's annual symposium in Jackson Hole. A lack of major US economic data contributed to the lackluster performance on the Wall Street. The Dow Jones industrial average was down 33.30 points, or 0.25 per cent, at 13,124.67. The Standard & Poor's 500 Index was down 0.69 points, or 0.05 per cent, at 1,410.44. The Nasdaq Composite Index was up 3.40 points, or 0.11 per cent, at 3,073.19.
Asian markets are stuck in a range today as investors await outcome from the central bankers and economists meet at Jackson Hole, Wyoming, later this week. Japan's Nikkei 225 index was trading 0.1 per cent lower at 9,076.75 and Hong Kong's Hang Seng index was trading lower at 19,761.12, down 0.20 per cent. South Korea's Kospi index was trading 0.2 per cent lower at 1,913.45. China's Shanghai index was trading 0.08 per cent higher at 2,057.12.
Indian equities, the Sensex and the Nifty, continued to trade flat in the morning session on Tuesday on weak Asian cues. The BSE benchmark was down 2.33 points to 17,676.48 and the NSE benchmark declined 3 points to 5,347.20.
metal stocks are amongst the worst hit in trades so far. The BSE metal index is the top sectoral loser, down 2% or 179 points at 10,098. Jindal Steel, Tata Steel, Sterlite Industries, Hindalco and Coal India are the top losers among the Sensex stocks from the metal pack.
Other Economic and Political News:
- Deficit monsoon may pose downside risk to growth outlook
- Controlling inflation will lead to interest rate cut: K C Chakrabarty
- No cartelization in steel sector: Beni Prasad Verma
- Lupin awaits USFDA nod for more drugs launches
- Suzuki Motor to stay invested in Haryana despite labour stir
- SpiceJet to start flights to China, Riyadh by October