SELLING PRESSURE MOUNTS

The selling pressure intensified in Monday afternoon trades in Indian equity markets as investors squared off hefty positions from the blue chip stocks post discouraging European market opening. The frontline indices traded with little conviction amid the broad based selling pressure across all counters. Capital Goods counter from the BSE sectoral space bore the maximum brunt as bellwether L&T got clobbered by around two and half a percent while other majors like BHEL, Siemens and Crompton Greaves too suffered losses. The rate sensitive Banking index too succumbed to the selling pressure as almost all the components of the gauge traded in the negative terrain. However, the benchmarks gathered some support after drifting around the psychological 5,025 (Nifty) and 16,730 (Sensex) levels in early afternoon trades on selective short covering in badly beaten down shares. On the global front, European stocks got pummeled as investors awaited a decision on whether Greece will receive a payment to help avoid a default. US futures and Asian shares too reeled under the selling pressure. Moreover, the broader markets showed some resilience and abstained from giving in to the selling pressure witnessed by their larger peers. The bourses slipped on weak volumes while the market breadth on BSE was in favor of declines in the ratio of 1279:1201 while 115 scrips remained unchanged.
The BSE Sensex is currently trading at 16,746.48 down by 187.35 points or 1.11% after trading as high as 16,865.93 and as low as 16,731.48. There was 1 stock advancing against 29 declines on the index.
The broader indices were trading on a flat note; the BSE Mid cap index eased 0.19% and Small cap slipped 0.06%.
On the BSE sectoral space, Consumer Durable up 0.38% was the only gainer while Capital Goods down 1.60%, Bankex down 1.38%, Metal down 1.16%, PSU down 0.84% and FMCG down 0.83% were the major losers on the index.
Wipro up 0.38% was the only gainer on the Sensex, while Sterlite down by 2.90%, ICICI Bank down 2.47%, L&T down 2.31%, Cipla down 2.10% and Sun Pharma down 2.04% were the major losers on the index.
Meanwhile, during the first four months of current financial year, India's import of sensitive items, which includes pulses and edible oils, surged by 34.5% to Rs 21.537 crore from Rs 16,016 crore in April to June 2011. In April to June 2011, India's pulses imports increased by 27.2% to Rs 2,016.26 crore from Rs 15.85.57 crore in April to June 2010. India is net importer of pluses.
Items like foodgrains, automobiles, milk and beverages comes under the sensitive category and government monitors the import of these items to see if they are negatively affecting the domestic industry.
India's import of edible oil surged by 51% to Rs 9,145.39 crore in April to June 2011 from Rs 6,055.6 crore in the same period of last year. India is one of the biggest consumer and importer of edible oils. This surge in import of edible oil is due to significant increase in imports of crude palm oil and its fractions. 
In the April to June 2011, items like alcoholic beverages and spices also showed surge in imports, it increased by 45.2% and 41.7% respectively. India's import of products like small scale industries like umbrellas, locks, toys and glassware also increased by 53.9% to 483.07 crore during April to July 2011. India's imports of automobile jumped by 128.8% to Rs 999.2 64 crore in April to June 2011 from Rs 433.89 crore in same period during last fiscal.
However, in the first quarter of 2011-12, India's imports of foodgrains, milk and milk products, and tea and coffee declined by 85.2%, 57.9%, and 36.4%, respectively. The import of milk and dairy products also declined by Rs 142.84 crore in the first quarter of current fiscal from Rs 339.43 crore in April-June 2010 quarter.
During April to June 2011, imports of sensitive items accounted for 4.4% of the country's total imports. The gross imports of all commodities in April-June 2011, surged by 33.65% to Rs 4,94,763.07 crore from Rs 3,70,182.12 crore in April-June 2010.
India's import sensitive items from Indonesia, China, Malaysia, Germany, the US, Canada, Japan, Thailand, the UK, Australia and Italy have increased whereas imports of sensitive items from Korea, Argentina and Myanmar have declined.
The S&P CNX Nifty is currently trading at 5,030.25, lower by 54.00 points or 1.06% after trading as high as 5,068.40 and as low as 5,024.95. There were 10 stocks advancing against 40 declines on the index.
The top gainers of the Nifty were GAIL up 1.64%, ACC up by 1.10%, HCL Tech up 0.92%, Wipro up 0.80%, and Ranbaxy up 0.50%.

R Infra down 3.53%, Sterlite down 3.15%, ICICI Bank down 2.76%, Axis Bank down 2.61% and L&T down 2.34% were the major losers on the index.

Asian markets traded on a pessimistic note, Shanghai Composite declined 1.63%, Hang Seng plunged 2.65%, Jakarta Composite sank 1.66%, KLSE Composite shaved off 1.15%, Straits Times slumped 1.12%, Seoul Composite slipped 1.04% and Taiwan Weighted plummeted 1.27%.
The stock markets in Japan remained closed in observance of public holiday.
The European markets traded on somber note as France's CAC 40 plummeted 2.77%, Germany's DAX got pounded 2.13% and Britain's FTSE 100 plunged 1.19%.