Nifty opens below 5600, DLF gains 5%, SBI slumps

The Indian markets opened in the red today following weak global cues and a weak currency despite government measures.

The BSE Sensex opened at 18912.24, down 0.24 percent, while the Nifty opened at 5589.25, down 0.44 percent.

Globally, US markets kicked off the week on a lacklustre note, with the Dow and S&P 500 extending their losses on Monday after posting their worst week since June, as investors find little reason to buy. The CBOE volatility index ended near 13. Major European indices closed mixed with financial services stocks posting the biggest declines, amid contrasting data from Japan.

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The rupee opened weaker today on the back of a contraction in factory output growth in June, with the government’s additional measures to curb the current account deficit and attract foreign fund inflows having little impact.

Traders said the measures were largely in line and there was scepticism about whether these foreign fund flows would actually come in.

The partially convertible rupee was trading at 61.52/53 per dollar, weaker than its close of 61.2750/2850 on Monday and not far from a record low of 61.80 hit last week.

The Index of Industrial Production (IIP), announced yesterday, contracted to 2.2 percent in June versus a negative 2.8 percent in June, indicating that the much-anticipated revival has not taken place. The June IIP data has been revised higher to minus-2.8 percent from minus-1.6 percent (provisional).

In a reaction to CNBC-TV18, C Rangarajan, chairman, PMEAC called the contraction “disappointing” but added that improvement during Q1 was not expected. Ashish Parthasarthy, head treasurer, HDFC Bank said that the rupee will definitely react adversely to both IIP as well as inflation data.

Stocks in news:

DLF is trading up more than 4 percent after the company reported its earnings late Monday. Profits declined 38 percent to Rs 181 crore.

Banking stocks continue their bad run with the BSE bankex down more than 1 percent - worst performing sectoral index.SBI is trading 1.05 percent down after its Q1 profit fell higher-than-expected nearly 14 percent YoY to Rs 3,241 on higher provisions.

Shriram EPC is up 2.62 percent. Irish cement maker CRH acquired Sree Jayajothi Cements. Shriram EPC held 68% stake in Jayajothi Cements.