Mid-Session: Sensex slips below crucial 28k levels Analysis for Jul 06, 2015

Posted By: Religare
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In line with the Asian peers, the Indian equities were trading lower, with the BSE Sensex slipping below psychological 28,000 levels, as Greece"s rejection of further austerity measures spooked investors" sentiments.

At 12:15 hours, the BSE benchmark SENSEX was trading at 27896.41, down by 196.38 points or by 0.7 per cent while the NSE Nifty was quoting 55.35 points lower at 8429.55.

The D-Street witnessed selling pressure as fear of Grexit looms after Sunday"s referendum results showed that 61 per cent of Greeks voiced against further spending cuts and tax hikes imposed by the country"s creditors, pushing Greece into an economic unknown with its euro membership now in limbo, prompting risk aversion among global investors.

In the choppy trade so far, the BSE Sensex touched intraday high of 27946.68 and intraday low of 27774.8, while the NSE Nifty touched intraday high of 8443.8 and intraday low of 8386.15.

Leading the rally in the BSE Sensex pack were Dr. Reddy's Laboratories Ltd. (Rs. 3700.00,+3.31%), Cipla Ltd. (Rs. 646.40,+2.38%), Hero MotoCorp Ltd. (Rs. 2614.50,+1.42%), Sun Pharmaceutical Industries Ltd. (Rs. 872.65,+0.19%), Bajaj Auto Ltd. (Rs. 2590.15,+0.15%), among others.

Meanwhile, Vedanta Ltd. (Rs. 161.00,-5.65%), Tata Steel Ltd. (Rs. 293.55,-2.46%), Hindalco Industries Ltd. (Rs. 108.10,-2.22%), Tata Motors Ltd. (Rs. 424.40,-2.07%), ICICI Bank Ltd. (Rs. 308.80,-1.77%), were among top losers on BSE.

Among the thirteen sectoral indices, metal index was top loser and was trading at 9079.2 down by 160.57 points or 1.74 per cent. Vedanta Ltd. (Rs. 161.00,-5.65%), Jindal Steel & Power Ltd. (Rs. 81.95,-3.13%), NMDC Ltd. (Rs. 114.40,-2.80%), Tata Steel Ltd. (Rs. 293.55,-2.46%), Steel Authority of India (SAIL) Ltd. (Rs. 61.75,-2.22%), were among other losers.

The Market breadth, indicating the overall strength of the market, was weak. On BSE out of total shares traded 2513, shares advanced were 1173 while 1255 shares declined and 85 were unchanged.

On the global front, Asian peers were also trading in negative terrain, barring China"s Shanghai Composite, as an outright rejection of further austerity by Greece cast doubts over the country"s euro future, curbing the lure for risky assets. China"s Shanghai Composite notched up a smart recovery after regulators suspended initial public offerings while the country"s brokerages vowed to purchase shares and the central bank promised to provide more liquidity for margin trading.

Story first published: Monday, July 6, 2015, 13:12 [IST]
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