ADAG, Metals play spoilsport; Sensex ends 244 points lower

Negative news on the domestic front and weak global cues dragged the markets lower today. The Sensex lost 244 points and the Nifty slipped 72 points

Major headlines

Cabinet approves new Mining Bill; Coal India, Tata Steel drop

RBI approves Reliance Capital’s stake sale in life insurance unit

CBI probes Anil Ambani in 2G scam; ADAG stocks fall

Bharti tower unit IPO unlikely this fiscal year

TTK Prestige rises on buzz of buying Italian firm



Indian indices

The Indian markets witnessed heavy losses at the closing on the back of weak global peers. A drastic fall in the ADAG stocks on reports that CBI will probe Anil Ambani in 2G scam unnerved investors. Also, heavy selling was seen in the metal stocks after the Cabinet approved New Mining Bill, which further dragged the markets. Weakness in heavyweights like Coal India, Sterlite Industries, ITC, TCS, Tata Motors, Jindal Steel, HDFC and SBI added to the losses.

Sensex movement: Tracking weak Asian cues, the Sensex started the session 146 points lower at 16600. Then the index staged a smart recovery, turning positive and touched the day’s high of 16745 in the mid-morning trade. However, the gains were limited as the index fell again tracking weakness in the European stocks and also in metal, realty, banking, auto, ADAG pack, which dragged the index to the day’s low of 16405 in the afternoon trade. The Sensex fell 244 points to close at 16454 and the Nifty stood at 4943, down by 72 points.

Market sentiment

The market breadth stood negative. Of the 2869 stocks traded on the BSE, 1019 (35.52%) rose, 1716 (59.81%) fell and 134 (4.67%) were unchanged.

Viewing volumes

India's Number 2 mobile carrier - Reliance Communications witnessed highest trading with over 0.57 crore shares. Following that, a non-banking financial company - Reliance Capital (0.44 shares), Jaypee group flagship company - Jaiprakash Associates (0.39 crore shares), the world's largest coal miner - Coal India (0.29 shares) and India's largest real estate companies - HDIL (0.28 shares).

Sectoral & stock screening

All the sectors closed in red barring BSE CD up by 1.02%. The major losers were - BSE Metal dipped by 2.68%, BSE Realty slipped by 2.08% and BSE Bankex slid by 1.84%.

In 'A' group stocks, biggest gainers - Jaypee Infratech shot up by 12.73%, Hindustan Copper advanced by 6.68% and Sesa Goa surged by 4.37%. On the other side, ADAG stocks were the major losers -- Reliance Capital went down by 12.24%, Reliance Communication slipped by 7.60% and Reliance Infrastructure dipped by 7.43%.

Global

The European stocks fell on Friday, with investors maintaining a sense of caution as the quarter comes to an end, even as the expanded European Financial Stability Facility moves closer to being finally approved.

The Asian markets closed on a mixed note on Friday.

The US stock index futures signal weaker open on the Wall Street on Friday.

Market Outlook: In the US, Personal Income & Outlays, Chicago PMI and Consumer Sentiment will be out on Friday.