GAP DOWN

Benchmarks have made a gap down opening triggered by subdued global cues. The US markets lost its traction on Friday on some weaker earnings and concern of Euro zone that emerged from Spain's one province seeking fund to meet its refinancing needs. While, all the Asian equity indices were witnessing significant cut after Chinese central bank adviser forecast an economic slowdown and on renewed concern that Greece may not meet its bailout targets. Back home, both the benchmarks lost about a percentage point and are trading near its crucial 5,150 (Nifty) and 17,000 (Sensex) support level. All the sectoral indices on the BSE traded lower. Metal, auto, realty, power, consumer durables, public sector undertaking and bankex stocks were witnessing the selling pressure in early trade. Meanwhile, shares of Maruti Suzuki were under pressure after the management declared a lockout at its Manesar factory. However, the company made it clear that it has no intention of moving out of the region. Moreover, the sentiments also remained dampened as shares of retail companies like Pantaloon Retail (India), Shoppers Stop, CESC, Trent, Provogue (India) and Brandhouse Retails tumbled on reports that the Samajwadi Party (SP), Left parties and JD(S) have asked Prime Minister Manmohan Singh not to allow foreign direct investment (FDI) in multi-brand retail. The broader indices too were struggling to get some traction and the market breadth on the BSE was negative; there were 500 shares on the gaining side against 860 shares on the losing side while 54 shares remained unchanged. 

The BSE Sensex opened at 17,047.73; about 111 points lower compared to its previous closing of 17,158.44, and has touched a low of 16,991.56 while high remain its opening.

The index is currently trading at 17,002.14 down by 156.30 points or 0.91%. There were only 2 stocks advancing against 28 declines on the index.

The overall market breadth has made a negative start with 35.36% stocks advancing against 60.82% declines. The broader indices too were trading in the red; the BSE Mid cap and Small cap indices declined 0.68% and 0.48% respectively.

The major losing sectoral indices on the BSE were, Metal down by 1.78%, Auto down by 1.39%, Realty down by 1.29%, Power down by 1.21% and CD down by 1.20%, while there were no gainers on the index.

The few gainers on the Sensex were Tata Power up by 1.14% and Cipla up by 0.18%.

On the flip side, Maruti Suzuki was down by 5.20%, Sterlite Industries was down by 2.52%, Jindal Steel was down by 2.29%, BHEL was down by 2.01% and Hindalco was down by 2.01% were the top losers on the Sensex.

Meanwhile, despite the fact that the global economy is slowing down, Commerce Secretary S R Rao has expressed his confidence that the Indian exports would grow by 20% in the current financial year and emphasized that India remains as the second-fastest growing economy.

Rao pointed out that the country has crossed the merchandise shipment target of $300 billion at $303.8 billion, posting the best trade numbers ever. The exports in June have dipped over 5%, while imports have shrunk over 15%, bringing down trade deficit to a 15-month low. India's trade deficit stood at $185 billion last year.

He also confirmed that the government has taken steps to reduce the trade deficit this year. By adding further he said, that the exports of manufacturing sector are encouraged and anti-dumping duties to safe guard domestic manufacturing sectors is also imposed.

Federation of Indian Export Organizations (FIEO) president M Rafeeque Ahmed has opined that the increase in input costs, growing interest rates and resultant high costs of funds and the rupee volatility are major challenges for exporters.

The S&P CNX Nifty opened at 5,163.25; about 42 points lower compared to its previous closing of 5,205.10, and has touched a high and a low of 5,164.20 and 5,152.55 respectively.

The index is currently trading at 5,156.55, lower by 48.55 points or 0.93%. There were only 3 stocks advancing against 47 declines on the index.

The few gainers of the Nifty were Cipla up by 0.40%, Ranbaxy up by 0.36% and Tata Power up by 0.35%.

On the flip side, Maruti Suzuki down by 5.60%, Sterlite Industries down by 2.66%, Jindal Steel down by 2.44%, Hindalco down by 2.09% and Sesa Goa down by 2.08%, were the major losers on the index.

Asian markets were trading with deep cut; Shanghai Composite lost 23.15 points or 1.07% to 2,145.48, Hang Seng plunged by 498.26 points or 2.54% to 19,142.54, Jakarta Composite declined by 63.05 points or 1.55% to 4,018.57, KLSE Composite was down by 4.29 points or 0.26% to 1,638.80, Nikkei 225 lost 127.12 points or 1.47% to 8,542.65, Straits Times declined by 23.61 points or 0.80% to 2,991.37, Kospi Composite lost 39.69 points or 2.21% to 1,783.62 and Taiwan Weighted declined by 151.78 points or 2.12% to 7,012.17.