Sensex down 58 pts as mood turns slightly bearish on rating downgrade

Last Updated: Mon, Sep 24, 2012 08:31 hrs
Diesel hike, QE3 boost Sensex, Nifty

The market, which staged a recovery of sorts after an early setback, has faltered and slipped into negative territory again due to a fresh round of selling at several front line counters.

FMCG stocks are trading weak. Information technology, oil and healthcare stocks are also trading weak, even as stocks from realty, power and capital goods sectors trade higher on strong buying support. Metal, automobile, bank and consumer durables stocks are also mostly trading firm.

The Sensex is down 58 points or 0.31% at 18,694, while the Nifty is down with a loss of 17.35 points or 0.31% at 5673.80.

HCL Technologies is down 3.3%. Hindustan Unilever, ITC, HDFC, ONGC, Cipla, Tata Consultancy Services, Power Grid Corporation, Ambuja Cements, Grasim Industries, GAIL India, Cairn india and Coal India are trading lower by 0.7% - 2.7%.

BHEL rules firm with a handsome gain of 7%. Jindal Steel is trading higher by a little over 5%. Reliance Infrastructure is up with a gain of 4% and Jaiprakash Associates is trading more than 3% up.

Axis Bank, Mahindra & Mahindra, Siemens, Hindalco, IDFC, Maruti Suzuki, Sesa Goa, DLF, Sterlite Industries, Dr Reddy's Laboratories, Asian Paints and Larsen & Toubro are also trading notably higher.

IVRCL shares are up 3% at Rs 48.40. The infrastructure major has reportedly bagged orders aggregating Rs 959.04 crore. These include a Bura irrigation and settlement scheme rehabilitation project awarded by the National Irrigation Board, Nairobi, Kenya, valued at Rs 471.52 crore, and a Rs 124.70-crore order for construction of irrigation water tanks, including annexed building and infrastructure, in Kuwait.

Shares of ABG Shipyard are up nearly 11% at Rs 386 on reports the company is likely to raise up Rs 1,000 crore. The company, in its annual report for 2011-12, said that up to Rs 1,000 crore will be raised in one or more tranches through a public issue, private placements or through Qualified Institutional Placement.

The company proposes to deploy the funds for expansion, finance, working capital and general corporate purpose.

Rating agency Standard & Poor's has cut India's GDP forecast by 1% to 5.5% due to uncertainty about the global economy. "Although Asia Pacific has recorded strong GDP growth relative to other global economies, we have observed a continued change in the region's economic barometer," S&P said in a statement.

In India, deficient monsoon is a big dampener has agriculture still forms a substantial part of the economy, the rating agency said.

"Additionally, the more cautious investor sentiment globally has seen potential investors become more critical of India's policy and infrastructure shortcomings. The latter was recently highlighted by the power outage in early August that affected 20 of India's 28 states," it added.

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