Bernanke blues, deferred Pension bill pull Sensex in red

After a two-day winning streak, the Indian markets have opened lower today on negative global cues. Federal Reserve Chairman Ben Bernanke dimmed hopes for further stimulus measures and Fitch downgrade of Spain’s credit rating, cutting early gains after Chinese central bank’s cut in lending and deposit rates. Earlier this week, the ECB too had rebuffed markets’ demand for monetary stimulus, putting more pressure on political leadership to quell the long-running debt crisis

While the Sensex opened 50 points down at 16600 levels, the Nifty opened down nearly 20 points at around 5026 levels. The rupee opened weaker at 55.25 versus the dollar, against Thuesday’s close of 54.94/95.

More from Investing

MSMEs are breaking the traditional convention. Look who’s funding them Scale-up your startup without an investor! Here’s how

All BSE indices except the IPO index are in the red. The BSE realty and the consumer durables index are the biggest loser today - Unitech down 1.6 percent, DB Realty loses 1.2 percent, DLF loses 0.9 percent.

Stocks leading losses on the Nifty - Reliance Industries loses 0.7 percent, SBI loses 1 percent, ONGC down 1.4 percent, Tata Motors down 0.9 percent. The top Sensex losers are Infosys down 0.3 percent, TCS loses 0.2 percent, L&T down 0.7 percent.

Bankex,Consumer Goods, Bankex, IT , Metal, FMCG,Auto,Realty,Metal , Consumer Durables, PSU and oil and gas indices are the losers. Wipro, TCS, Gail India,HDFC Bank, HUL were among the notable leaders in the Sensex and the Nifty. RIL, DLF, L&T, ONGC, Tata Power, Tata Motors, Hero MotoCorp, SBI, Bajaj Auto, Maruti is only notable loser in the Sensex and the Nifty.

[caption id=“attachment_336293” align=“alignleft” width=“380” caption=“While the Sensex opened 50 points down at 16600 levels, the Nifty opened down nearly 20 points at around 5026 levels. Reuters”]  [/caption]

In an interview to CNBC-TV18, Sudarshan Sukhani of s2analytics.com saud, there could be more upside to the market. However, the market will pause after the 250-point move.He added if the small correction stops well ahead of the 4,800 level, then the breakout is genuine and the market could see higher levels. According to him, the Bank Nifty will outperform the Nifty. He advises to buy banks on dips.

The Government continues to dither over key reforms, with the Cabinet not taking up the pension bill. A leading global airport operator has announced its exit from India and power cuts remain rampant due to soaring demand. At the same time, reports indicate that three leading investments banks are likely to sell the long-term India story to global investors in the coming months.

Globally, Fitch Ratings has downgraded Spain by three notches and has warned the US of a similar treatment. In short, it is time to step back after the advance we saw earlier this week. Next week will be very important, with the Government due to release the latest data on industrial production (IIP) and inflation.

There will be buzz in the banking sector as the Union Cabinet, has approved a capital infusion of Rs 632 crore into the cash-starved regional rural banks (RRBs) to improve their capital adequacy norm.

Stocks in news:

Reliance Industries plans to invest Rs1 lakh crore over the next five years in the country “to build a stronger and more diversified Reliance.”

State Bank of India has reduced short-term retail term deposit rates by 25 basis points as liquidity in the system has improved.

L&T Construction has bagged orders worth Rs2400 cr in the first quarter of this fiscal. (BL)

Aurobindo Pharma is expecting the USFDA to inspect its antibiotics production plant in Hyderabad between July and September this year as it seeks lifting a ban.

Maruti Suzuki will be adding around 1,900 employees to its workforce this year, out of which around 900 will be for engineering and management divisions.

Tata Steel announced plans to set up a Rs30000 cr steel plant in Karnataka. The 6 mtpa capacity plant would come up in Haveri district.

Cipla has lost an appeal in a US court over a patent case against Merial Ltd regarding an animal healthcare product.

Suzlon Energy is investing Rs15000 cr to set up wind and solar farms of 3000 MW in Karnataka.

IDBI Bank is set to raise Rs4000 cr in multiple tranches by issuing domestic bonds with tenures of 5-10 years.

BEML’s truck production and business have nearly halved, after orders from the Armed Forces dwindled two years back.

Jubiliant Life Sciences will invest about Rs1000 cr across its various business in Karnataka.

International Finance Corporation has increased its stake in Apollo Hospitals by converting its foreign currency convertible bonds into equity.