FMCG, index heavyweights lead decline

Markets were trading near their day lows in afternoon deals, amid weak cues from Europe, with FMCG and index heavyweights leading the decline. The Sensex down 89 points at 17,530 after touching an intra-day low of 17,506. Nifty slipped 28 points at 5,318.

European shares were trading lower on Wednesday on worries that the sluggish global economy may hurt earnings. The CAC-40, DAX and the FTSE-100 were down 0.5% each.

Asian shares were mixed on Wednesday on worries that the global economic slowdown will erode corporate earnings, with the market unconvinced the euro zone can decisively bring down struggling member states’ borrowing costs even after yields pulled back. Nikkei, Hang Seng and Kospi Composite down 0.3-0.5% were the major losers.

BSE realty index was the biggest sectoral loser and dropped 1.3% to 1,729. FMCG index shed 1% to 4,913.Auto shares also witnessed profit taking after recent data showed that car sales in India registered 8.3% growth in June.

Hindalco remained the biggest loser – down 2.4%, followed by Wipro and Tata Motors. Market heavyweight – Reliance was the biggest dragger and accounted for a 24 point loss on the Sensex.

ITC, Bajaj Auto and ICICI Bank also declined in trades.

Meanwhile, Infosys added 1% to Rs 2485 ahead of its quarterly numbers due tomorrow. The board of the company is likely to announce share buyback plan in tomorrow’s board meeting.TCS, trading flat at Rs 1263, will also come out with its results on July 12.

Among individual stocks, Strides Arcolab is trading higher by 2.6% at Rs 757 after the pharmaceutical company said that Agila Specialties Pharma Corporation, its injectable drug division, has formed a joint venture (JV) with a Canadian generic drug firm to introduce a variety of quality injectable generic drugs in Canada.

Castrol India has soared 3.5% to Rs 560 after the company announced that its board will consider issue of bonus shares.

However, Cummins India is trading lower by 4% at Rs 432, after its parent company, Cummins Inc., cut its full-year sales forecast.

Source: Business Standard

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