MARKETS SLIDE

Domestic benchmarks have made a negative opening and trading in the red with Sensex breaching its crucial 16,900 mark following weak global cues. The US markets suffered sharp cuts overnight; Dow extended its triple digit decline for the third straight session amid concerns about the ongoing debt crisis in Europe while worries over flimsy fiscal conditions of Spain and Greece, coupled with worries over slowdown in China are weighing on the sentiment across Asian counters. Bach home, investors remain concerned on mounting qualms over the government's ability to launch few important reforms amid stiff resistance from various UPA allies and Opposition parties. However, Nifty managed to hold 5,100 mark somehow while, Sensex lost its crucial 16,900 mark. On the sectoral front software remained the lone gainer on the Sensex while, major part of the blow was absorbed by capital goods, metals and auto stocks. The sentiments also got bashed after the NSE removed 51 stocks from the F&O segment with effect from July 27, 2012. Also the telecom companies' shares butchered in the early trade as decision on spectrum fee by the EGoM headed by Home Minister P Chidambaram has been deferred. Meanwhile, the broader indices too were struggling to get some traction and the market breadth on the BSE was negative; there were 552 shares on the gaining side against 818 shares on the losing side while 53 shares remained unchanged.

The BSE Sensex opened at 16,899.01; about 19 points lower compared to its previous closing of 16,918.08, and has touched a low of 16,816.67 while high remained its opening.

The index is currently trading at 16,832.76 down by 85.32 points or 0.50%. There were 5 stocks advancing against 25 declines on the index.

The overall market breadth has made a negative start with 38.79% stocks advancing against 57.48% declines. The broader indices too were trading in the red; the BSE Mid cap and small cap indices declined 0.46% and 0.33% respectively.

The only gaining sectoral index on the BSE was IT marginally up by 0.02%. While, CG down by 1.10%, Metal down by 0.95%, Auto down by 0.82%, Power down by 0.81% and Oil and Gas down by 0.76% were the top losers on the index.

The top gainers on the Sensex were HDFC Bank up by 0.50%, GAIL up by 0.28%, ITC up by 0.18%, Sun Pharma up by 0.12% and Infosys up by 0.08%.

On the flip side, Wipro was down by 1.82%, Jindal Steel was down by 1.78%, L&T was down by 1.44%, Maruti Suzuki was down by 1.28% and ONGC was down by 1.27% were the top losers on the Sensex.

Meanwhile, Competition Appellate Tribunal (COMPAT) has granted stay against competition watchdog Competition Commission of India (CCI)'s order, wherein the latter levying a penalty of Rs 317.91 crore, alleging three Aluminium phosphide tablet (APT) manufacturers for violation of sections 3 (3) (b) and 3 (3) (d) of the Competition Act, 2002.

However, in first of its kind of order, COMPAT would place a stay on penalty only on condition that all the appellants deposit 10% of the penalty amounts which would be Rs 25.244 crore for United Phosphorus, Rs 6.39 crore for Excel Crop Care and Rs 0.15 Lakh for Sandhya Organics. These companies are expected to deposit the money within eight weeks from the date of passing of the order.

Back in April, CCI passed an order imposing fine of Rs 317.91 crore on three manufactures for allegedly forming a cartel and maneuvering bids of the Food Corporation of India (FCI) to supply aluminum phosphide tablet. The Commission had then slapped fine of Rs 252.44 crore on United Phosphorus and Rs 63.90 crore and Rs 1.57 crore respectively on Excel Crop Care and Sandhya Organics. The penalty was calculated on the basis of 9% of the average of three years turnover on the three producers.

CCI directed a probe after receiving complaints from the FCI, which informed the fair trade regulator in February 2011 towards hike in cost of procurement and apprehended formation of a cartel by the manufacturers. The state procurement agency had further alleged that manufacturers had exaggerated the price in bids invited for preservation of the central pool food grain.

The S&P CNX Nifty opened at 5,118.40; about 10 points lower compared to its previous closing of 5,128.20, and has touched a high and a low of 5,121.60 and 5,100.45 respectively.

The index is currently trading at 5,105.50, lower by 22.70 points or 0.44%. There were 9 stocks advancing against 41 declines on the index.

The top gainers of the Nifty were HCL Tech up by 6.06%, Ambuja Cement up by 1.04%, ACC up by 0.64%, HDFC Bank up by 0.59% and GAIL up by 0.50%.

On the flip side, Jindal Steel down by 2.01%, Wipro down by 1.88%, L&T down by 1.41%, SAIL down by 1.35% and Bharti Airtel down by 1.31%, were the major losers on the index.

Most of the Asian equity indices were trading in the red; Hang Seng lost 30.02 points or 0.16% to 18,873.18, Jakarta Composite added 3.10 points or 0.08% to 3,989.60, KLSE Composite lost 1.55 points or 0.09% to 1,630.94, Nikkei 225 plunged by 85.17 points or 1.01% to 8,402.92 and Kospi Composite lost 14.14 points or 0.79% to 1,780.09.

On the other hand, Shanghai Composite was up by 3.24 points or 0.15% to 2,149.83 and Taiwan Weighted added 4.75 points or 0.07% to 7,012.30.