labels: stock markets - india, markets - general
25 May 11.10 AM: Margins cut fails to cheer; partial recovery after sharp fall news
25 May 2006


The lowering of trading margins by nearly 50 per cent did not help the markets in opening trades. Weakness across all Asian markets and a further decline in international metal prices made a recovery from yesterday's decline almost impossible.

Both indices declined close to 3 per cent each before pulling back. After some volatility, some of the bigger stocks stabilised and helped the markets to recover a significant part of their early losses.

Sensex opened at 10521 and declined to 10275 before recovering. The index is trading lower by 93 points at 10480 at 11.10 AM.

Nifty opened at 3115, declined to a low of 3013 before recovering. The index is trading lower by 24 points at 3091.

Power utility stocks have come under further pressure today, continuing the trend from yesterday. Reliance Energy is the biggest loser among index stocks, trading nearly 4.5 per cent lower. Tata Power is trading nearly 3.5 per cent lower.

Metal stocks are weak following the decline in international metal prices. SAIL has given up close to 4 per cent while Tata Steel has recovered and is trading around 1.5 per cent higher.

Among non-ferrous metal stocks, Sterlite has shed more than 4 per cent. Nalco is trading more than 2.5 per cent lower while Hindalco has given up nearly a per cent.

Select auto stocks continue to be weak today as well. Tata Motors has given up nearly 3.5 per cent while M&M is trading over 3 per cent lower. Maruti has lost nearly a per cent.

Among 2-wheelers, Bajaj Auto has given up over 2.5 per cent.

Engineering stocks are showing no signs of a recovery. BHEL is trading more than 3 per cent lower while L&T has lost nearly 3 per cent. ABB and Siemens are also trading lower.

Dabur is the biggest loser among FMCG stocks, trading nearly 4 per cent lower. Tata Tea has lost nearly 3 per cent.

HCL Technologies, Bharti Airtel, Infosys and HDFC Bank are the other losers.

As can be expected, there were very few gainers among index stocks in early trades. At one point, all the 50 Nifty stocks were down in the red.

MTNL, one of the big losers in recent sessions, has added more than 2.5 per cent and is the biggest gainer among index stocks. Zee Tele has recovered from yesterday's fall and is trading more than 2.5 per cent higher.

Heavyweights ONGC and Reliance Industries have recovered from the lows and are trading with modest gains of over 0.5 per cent each.

ACC, PNB, Wipro, HLL and Hero Honda are the other gainers.

Mid-caps are doing worse than the frontline stocks. The index slumped more than 2 per cent and is now trading with losses of around 1.7 per cent. Market breadth on the NSE and is highly negative with more than 6 stocks declining for every advancing stock.

GNFC, Unitech, HMT, Thermax and Soma Textiles are among the gainers in mid-caps.

Zodiac JRD, Celebrity Fashions, Subros and Sintex are among the mid-cap losers.

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25 May 11.10 AM: Margins cut fails to cheer; partial recovery after sharp fall