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Weakness in banks, RIL drag Nifty below 7,400


Markets have come off morning lows as gains in SBI and metal major capped losses in heavyweights. At 1040 hrs, the Sensex was down 88 points at 24,717 and the Nifty was down 16 points at 7,385.

Meanwhile, the broader market firmed with both the mid and smallcap indices adding 0.8% each.

Oil & Gas, Auto and Bankex were the only indices in red, down 0.2-0.6%. Defensives like IT and FMCG indices were down 0.1% each.


After a flat start, benchmark indices slipped into negative territory with the Sensex down 132 points at 24,673 and the Nifty gave off 31 points to trade at 7,370 at 0945 hrs.  Weakness in banks, ONGC and Infosys weighed on the indices in the opening deals.

However, there was no stopping broader market outperformance. The mid and smallcap indices gained 0.7% each, as compared to the 0.08% cut on the Sensex.

Sectors & Stocks

Metal, Consumer Durables, Power and Realty indices gained 1-1.65 and were top sectoral movers.

Banking index, IT and Teck were the only pockets in opening trades.

Metal names like Sesa Sterlite, Hindalco and Tata Steel up 1-3% were the top gainers among Sensex-30.

Maruti Suzuki, HUL, BHEL and Coal India which added 1.5-1.7% were the other notable gainers.

Among the ones in red were Hero MotoCorp, M&M, ICICI Bank and HDFC Bank all down 1-1.5%.

Infosys, Dr Reddys Lab, HDFC, Tata Power and Sun Pharma were some of the prominent names in red.

Owing to the strength in broader markets, the market is positive on BSE. 1346 stocks advanced while 374 stocks declined.

Global Markets

The Asian share markets grudgingly gave ground on Thursday while the euro flat lined at $1.3600, hostage to great expectations that the European Central Bank will finally end months of dithering by easing policy further.

Not helping was a drop in HSBC/Markit's measure of the China service sector to 50.7 in May from April's 51.4, though that was still above the 50-point level that is supposed to separate growth from contraction.

The findings buck the trend seen in other China surveys in recent days which suggested the economy may be stabilizing after a weak start to the year and raise the question of whether Beijing needs to do more to put a floor beneath growth.

Japan's Nikkei shed early gains to be up just a sliver at 15,082 points, so far failing to extend a two-week rally to test the April top of 15,164.
MSCI's broadest index of Asia-Pacific shares outside Japan dipped 0.1%, while South Korea's market lost 0.6%.

Overnight, U.S. stocks edged up on Wednesday with the S&P 500 ending at a new record as investors brushed off weaker-than-expected labor market data and focused on an acceleration in services-sector growth.

But trading volume continued to be light as investors took a wait-and-see approach ahead of the European Central Bank policy meeting on Thursday and the U.S. government's May nonfarm payrolls report on Friday.

The Dow Jones industrial average rose 0.09%, to 16,737, the S&P 500 gained 0.19%, to 1,928 and the Nasdaq Composite added 0.41%, to 4,252.

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