labels: stock markets - india, markets - general
16 May 11.10 AM: Indices decline further in highly volatile tradenews
16 May 2006

After yesterday's 4 per cent fall, indices opened the day with modest gains before slumping again. Sensex dropped more than 150 points before recovering and going back into positive territory.

The recovery was short-lived as continuing weakness across most Asian markets pulled down the indices once again. Gains in cement, FMCG and select metal stocks are not enough to support the indices.

Further decline in international metal prices in Asian trades today is affecting metal stocks.

Sensex opened at 11861 and touched a low of 11645 before recovering. The index is trading lower by 140 points at 11682 at 11.10 AM.

Nifty opened at 3503, touched a low of 3442 and is trading lower by 45 points at 3458.

Tata Steel is the biggest loser among index stocks and is trading more than 4 per cent lower. The stock has lost nearly 9 per cent in just two sessions. SAIL has lost close to a per cent.

After declining substantially in opening trades, aluminium stocks recovered after Hindalco announced a product price hike before slipping again. Hindalco is now trading around 2 per cent lower while Nalco is trading flat.

Engineering stocks have also come down in early trades. ABB is trading more than 3 per cent lower while L&T has lost close to 3 per cent.

Gail is the biggest loser among oil and gas stocks, trading more than 3 per cent lower. HPCL has also lost nearly 3 per cent.

Reliance Industries is flat after three days of correction while ONGC has lost close to 2 per cent.

RPL is continuing its down trend and has lost another 5 per cent. The stock is trading around Rs75.

Reliance Energy, Tata Power and Cipla are among the other losers.

Cement stocks have made a recovery in early trades, helped by reports that there would be only a 5 per cent reduction in cement prices in response to the government's move to bring down prices.

Gujarat Ambuja is the biggest gainer among index stocks, trading over 2 per cent higher. ACC has added over a per cent while Grasim is trading with marginal gains.

FMCG stocks have made a comeback in early trades. Dabur has recovered from yesterday's sharp fall and is trading more than a per cent higher. ITC has added nearly 0.5 per cent while HLL has gained modestly.

Mid-caps are also considerably weak in early trades as many high profile stocks have come down substantially. The index is trading with losses of more than 2 per cent. Market breadth on the NSE is highly negative with more than 3 stocks declining for every advancing stock.

Indian Hume Pipe, Karur Vysya Bank and Godrej Industries are among the major gainers in mid-caps.

Bajaj Hindustan, PVR, Monnet Ispat, Essar Oil and TVS Motor are among the mid-cap losers.

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16 May 11.10 AM: Indices decline further in highly volatile trade