SELLING PRESSURE

Indian equity markets continued trading in red on extensive selling pressure in several blue chips, especially from the IT space and poor IIP data for the month of May. Infosys played a major spoilsport today on a sequential decline in its quarterly earnings which added to the woes in local markets. The Sensex was moving towards day's low but recovered from the low levels post the cabinet reshuffle announcement by the government. On sectoral front key IT stocks from technology, automobile, and capital goods sectors were trading weak. While select FMCG, PSU and oil stocks were up in positive territory. Health care and consumer durables stocks are mostly trading flat. On the global front, Asian markets were trading in red and European markets are expected to open lower by responding to the weakness in global markets amid growing worries about the debt crisis in the euro zone. Italy faces 175 billion euros in debt maturities this year and has 1.6 trillion euros of bonds outstanding, the world's third-largest debt pile after the US and Japan. European Union emergency meeting during weekend was not able to provide any concrete financial aid to periphery. Back home, market breadth was negative; there were 807 shares on the gaining side against 1,515 shares on the losing side while 90 shares remained unchanged.
The BSE Sensex is currently trading at 18,553.73, down by 167.66 points or 0.90%. The index has touched a high and low of 18,589.19 and 18,460.12 respectively. There were 8 stocks advancing against 22 declines on the index.
The broader markets are too under pressure; the BSE Mid cap and Small cap indices were down by 0.35% each.
The top gaining sectoral indices on the BSE were, FMCG up by 0.64%, PSU up by 0.36%, Oil & Gas up by 0.28% and CD and HC up by 0.03% each. While, IT down by 3.27%, TECk down by 2.55%, Auto down by 1.36%, CG down by 1.20% and Realty down by 1.15% were the top losers on the index.
The top gainers on the Sensex were ITC up by 0.96%, ONGC up by 0.68%, HUL up by 0.63%, ICICI Bank up by 0.61% and Tata Power up by 0.34%.
On the flip side, Infosys down by 4.86%, Tata Motors down by 2.70%, Wipro down by 2.38%, Jindal Steel down by 1.99% and L&T down by 1.71% were the top losers on the index.
Meanwhile, the Quick Estimates of Index of Industrial Production (IIP) with base 2004-05 for the month of May 2011 has declined to 5.6% to 165.3 as compared to the level in the month of May 2010. The cumulative growth for the period April-May 2011-12 stood at 5.7% over the corresponding period of the previous year.
According to data released by the Central Statistics Office of the Ministry of Statistics and Programme Implementation, IIP for the Mining, Manufacturing and Electricity sectors for the month of May 2011 stood at 130.4, 173.4 and 153.3 respectively, with the corresponding growth rates of 1.4%, 5.6% and 10.3% as compared to May 2010. The cumulative growth in the three sectors during April-May, 2011-12 over the corresponding period of 2010-11 have been 1.3%, 6.0% and 8.4% respectively.
As per Use-based classification, the growth rates in May 2011 over May 2010 are 7.2% in Basic goods, 5.9% in Capital goods and 0.9% in Intermediate goods. The Consumer durables and Consumer non-durables have recorded growth of 5.2% and 5.6% respectively, with the overall growth in Consumer goods being 5.4%.
The S&P CNX Nifty is currently trading at 5,565.95, down by 50.15 points or 0.89%.  The index has touched a high and low of 5,580.25 and 5,535.45 respectively. There were 16 stocks advancing against 34 declines on the index, while one stock remained unchanged.
The top gainers of the Nifty were ITC up by 0.96%, HUL up by 0.78%, ONGC up by 0.73%, Kotak Bank up 0.60%, and BPCL up by 0.58%.
Infosys down by 5.09%, Wipro down by 2.58%, Tata Motors down by 2.35%, Jindal down by 1.98% and L&T down by 1.94%, were the major losers on the index.

All the Asian counterparts were trading in the red; Shanghai Composite dipped in red by 1.35%, Hang Seng plunged 2.11%, Jakarta Composite slid 0.92%, KLSE Composite declined 0.44%, Nikkei 225 dropped 1.39%, Straits Times lost 1.02%, Seoul Composite was down with a cut of 2.01% and Taiwan Weighted shed 2.02%