Sensex closes in green, Axis Bank down 3% on HSBC stake sale

It was a volatile session in the markets, however, both the BSE and NSE managed to close in green (0.14 percent) for the second consecutive today (expiry day for June series). The BSE Sensex closed at 16,990, below the psychological 17000 mark over fears that the monsoon has been delayed by a week. The S&P CNX Nifty also closed up just 7 points at 5,149. The market breadth was positive. On the BSE, 1,448 stocks advanced while 1,328 declined.

Among the sectoral indices, six closed in the red followed by oil and gas and bankex. The weakness in European markets also impacted sentiments back home. In the 30-share Sensex, 16 stocks declined led by a sharp fall in Gail (-2.5 percent) and Sterlite Industries (-1.9 percent).

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[caption id=“attachment_360599” align=“alignleft” width=“380” caption=“The BSE Sensex closed at 16,990, below the psychological 17000 mark over fears that the monsoon has been delayed by a week.”]  [/caption]

Stocks also fell due to the weakness in European markets as investors grew increasingly skeptical that concrete measures would be agreed upon at the latest European Union summit to tackle the region’s debilitating debt crisis. The two-day meeting is expected to produce a roadmap for fiscal, financial and political union and agree a package of growth-boosting measures, but emergency intervention to ease stresses in the bond market look doubtful.

According to Ajay Srivastava, Dimensions Consulting, the Indian markets are still wading through troubled water as they are hoping for some sentiment booster from Manmohan SIngh who has taken up the finance ministry portfolio. However, he feels that the Nifty has the strength to touch 5,300.

Stock specific news:

•Tata Motors closed up marginally 0.4 percent after falling steeply in the morning. The stock had fallen sharply over reports that production will be halted at its Jamshepur plant because of prevailing economic condition.

•Tyre companies witnessed selling pressure after a member of the CCI said that the probe on Tyre companies was underway and that the order was likely in the next 7-10 days.

•Rolta India gained 4.2 percent after the company said it has redeemed the outstanding foreign currency convertible bonds aggregating $134.70 million, including redemption premium of $38 million on due date.

•Yes Bank (0.-7 percent) and Axis Bank (-3 percent) fell on news that HSBC Holdings PLC has sold its stakes in the two private sector banks.

•Tata Power rose 1.3 percent after Delhi Electricity Regulatory Commission early this week approved a steep tariff hike in Delhi.