makin97 NSETIPS @ RAKESH MAKIN: MARKET ENDED 17.06.2011 FRIDAY

WERE TODAY'S GAINERS

MARKET ENDED 17.06.2010 FRIDAY

SENSEX 17870.53 -115.35

NIFTY 5366.40 -30.35

NASDAQ 2629.57 +05.87

UPDATEDTIME 09.28 PM 17 JUNE 2011

Indian markets ended in the negative territory extending losses for third consecutive session as concerns slow-down in economic growth due to further rate hike by the Reserve Bank of India and deteriorating debt crisis in Greece hurt sentiments. The benchmarks also came under pressure after institutional investors offloaded shares in index-heavyweight Reliance Industries in the last half an hour of trade.

The foreign institutional investors have turned sellers and sold-off equities over Rs 1050 crore in the last four sessions. The hawkish tone of the RBI to tackle inflation, after increasing interest rates by 25 basis points, has caused the FIIs to s It on the sidelines. The central bank is expected to hike rates by 50 basis points in FY12.

Shares of Reliance Industries have been under pressure since the Comptroller and Auditor General report said the Oil Ministry and its technical arm, the DGH, allegedly favored Reliance Industries for its KG-D6 gas field.

The problems are getting compounded because this talk of the CAG report and possibly some inquiry, and these are the things that are keeping sentiment down. There is no great clarification coming from anywhere saying that nothing is going to happen. There is a lot of uncertainty coming out of that space, therefore, people are a bit circumspect on that.

It is a very large part of the benchmark, therefore, one needs to be invested. At the same time, one needs to probably hedge oneself through buying some index puts or something like that.

National Stock Exchange's Nifty ended at 5366.40, down 30.35 points or 0.56 per cent. The broader index touched a high of 5421.15 and low of 5355.85 in trade today.

Bombay Stock Exchange's Sensex closed at 17870.53, down 115.35 points or 0.64 per cent. The 30-share index hit a high of 18064.76 and low of 17844.09 intraday.

"The close has come near day's low forming a "bearish belt hold" pattern, an indication of weak momentum. On sectoral basis, technology pack has turned weak with the BSE IT Index falling below the 200 DEMA. BSE Oil&gas is also trading near four-month low. We believe that the Sensex could test the May lows of 17786, below which it can slip to 17295.

Defensive stocks like HLL, Dabur and Marico will continue to outperform the broader market. Downward pressure will be seen in IT and oil&gas space.

BSE Midcap Index was down 0.83 per cent and BSE Smallcap Index slipped 0.92 per cent.

Amongst sectoral indices, BSE IT Index was down 1.94 per cent, BSE Oil&gas Index slipped 1.56 per cent and BSE Healthcare Index declined 1.29 per cent.

TCS (-3.58%), Reliance Industries (-2.21%), M&M (-2.02%), Hindalco Industries (-1.96%) and Maruti (-1.85%) were the major Sensex losers.

Tata Steel (3.45%), Bharti Airtel (2.58%), Reliance Communications (1.49%), Reliance Infrastructure (0.97%) and NTPC (0.93%) were amongst the top gainers.

The Tata Steel board has decided to sell its entire stake of 26.27 per cent in Riversdale Mining for A$1.06 billion, signaling an end to the year-long speculation of whether the Jamshedpur-based steelmaker would exit from the investment it made in 207.

Market breadth was negative on the BSE with 1946 losers against 957 gainers.