After yesterday's surprising rally, markets turned weak today following mixed trend across most global markets. Auto stocks were the worst hit while frontline tech stocks recovered part of their losses towards the end.

Indices opened on a flat note before declining and losing nearly a per cent each by mid-morning. A recovery took them close to early levels before tumbling yet again to touch the day's lows by mid-afternoon. Modest recovery in the last hour helped the indices to pare losses.

Sensex closed with losses of 70 points at 10614 and the Nifty lost 26 points to close at 3116. Nifty July futures ended at a discount of 19 points to the spot index.

Auto stocks were weak after sector downgrades by leading brokerages on concerns about rising input costs. Tata Motors lost 4 per cent while Maruti and M&M ended nearly 2.5 per cent each.

Hero Honda crashed after announcing disappointing results and was the biggest loser among index stocks, ending nearly 6 per cent lower.

Metal stocks were also weak today and lost considerably. SAIL lost nearly 4.5 per cent and Tata Steel declined nearly 2.5 per cent. Among smaller stocks, Essar Steel declined more than 5 per cent.

Among other metal stocks, Hindalco closed 2.5 per cent lower.

Infosys lost nearly 1.5 per cent ahead of the results announcement tomorrow. TCS also lost 1.5 per cent.

Suzlon Energy resumed its correction and ended more than 4 per cent lower.

HDFC Bank was the biggest loser among banking stocks, closing more than 2 per cent lower. ICICI Bank lost more than a per cent.
Index heavyweight ONGC lost nearly 1.5 per cent.

Among other major losers, Zee Tele closed more than 3 per cent lower and HLL declined 2 per cent.

Pharma stocks had a good day and were strong throughout the session. Cipla ended with gains of 3 per cent and Glaxo added nearly 1.5 per cent. Dr Reddy's and Sun Pharma closed nearly a per cent each higher.

Dabur sustained the up trend from yesterday and was the biggest gainer among index stocks, closing more than 3 per cent higher.

Gujarat Ambuja rallied in afternoon trades and closed 2.5 per cent higher. ACC and Grasim added a per cent each.

Satyam was the only tech stock, which managed to close with good gains of nearly 1.5 per cent.

Tata Power added nearly 1.5 per cent after announcing a tie-up with Siemens AG. Siemens India ended nearly 2 per cent higher.
IPCL, MTNL and BPCL were the other major losers.

Global markets / crude oil
US markets had a mixed day yesterday as the broader markets ended with modest gains even as tech stocks declined.

Expectations of sustained corporate profit growth helped most stocks to hold on to their levels. Technology stocks turned weak after profit warnings from some of the larger companies and a sector downgrade from a leading brokerage.

The Dow and S&P 500 indices ended with gains of nearly 0.15 per cent each. The NASDAQ index lost more than 0.6 per cent.

Asian indices were once again mixed day in the absence of a clear direction in the US markets yesterday and local concerns dominated. Singapore lost nearly a per cent while Hong Kong ended nearly two-thirds of a per cent lower. Japan lost 0.5 per cent and Malaysia ended with marginal losses.

Among the gainers, Shanghai added two-thirds of a per cent while South Korea and Indonesia ended with modest gains.

European markets opened with modest losses before slipping further towards noon. Major indices are trading with losses of between 0.25 per cent and 0.8 per cent now.

Crude oil prices declined yesterday after the UN Security Council backed off from taking action against North Korea. It is expected that Chinese support to North Korea would force negotiations and a peaceful settlement. There are also some signs of progress on the Iranian nuclear issue. Near month NYMEX futures closed at $73.61 per barrel yesterday. The commodity is trading with marginal losses in early European trades today.

Large-cap news flow

• Tata Power has signed an agreement with Siemens Project Ventures, a subsidiary of Siemens AG, to jointly participate in the tariff based bidding process for two ultra-mega power projects.
  
  
• IDBI has entered into a tripartite agreement with Federal Bank and European insurance company Fortis Insurance International to start a life insurance venture. IDBI would hold 48 per cent while the other partners would hold 26 per cent each, according to reports.
  
  
• Nestle India has commenced commercial production at its new plant in Uttaranchal.

Mid-Cap Action

Mid-caps and small caps resisted the decline in large caps and remained within a range for most part of the session. Mid-caps in some sectors like sugar saw good buying interest today.

The CNX Mid-Cap index ended with gains of 2 points, or 0.06 per cent, to end the day at 3897. BSE mid-cap index gained 0.2 per cent and the BSE small cap index ended with gains of 0.45 per cent.

Excel Industries, BASF, Crisil, Nelco, FACT, Hyderabad Industries, South Indian Bank and Prime Securities were among the mid-cap gainers.

Ramkrishna Forge, Magma Leasing, Softpro Solutions, Pratibha Industries and Unitech were among the major mid-cap losers.

Mid-cap news flow

• Srei Infrastructure Finance has secured a $25 million long term loan from a European bank.
  
  
• IVRCL Infrastructure has secured various orders worth a total of Rs290 crore. The orders are for water supply, irrigation and power projects.
  
  
• The board of Zenotech Laboratories would meet early next week to consider a preferential issue of equity shares to Ranbaxy.
  
  
• Panacea Biotech has tied up with an Indonesian company to source measles vaccine in bulk. Panacea would formulate the bulk vaccine into the finished product and market it internationally.
  
  
• Suryalakshmi Cotton has commissioned its expanded spinning facilities and the garment unit of its subsidiary company.
  
  
• Sadbhav Engineering has won an order worth Rs293.42 crore for improvement and maintenance of a road in Rajasthan.
  
  
• Industrial Organics would expand its ibuprofen capacity from 1,500 MT to 1,800 MT and set up a co-generation unit at a total cost of Rs72.95 crore.
  
  
• Goodlass Nerolac Paints has been renamed as Kansai Nerolac Paints with effect from today.
  

*Disclaimer: The author may have positions in some of the stocks specifically mentioned above at the time of writing this article. This analysis / report is only for the purpose of information and is not an investment advice. Readers are advised to consult a certified financial advisor before taking any investment decisions. While efforts have been made to ensure the accuracy of the information provided in the content the author or publisher shall not be held responsible for any loss caused to any person whatsoever.

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