Sensex hovers near 16200; DLF, Jindal Steel down

MUMBAI: Equities continued to reel under selling pressure cautious investors booked profits on growing concerns that Greece might default sooner or later. The global financial markets plunged after Greece said it would miss the target set by the International Monetary Fund and European Union.

"World markets had their worst quarter since the height of the 2008 financial meltdown, as a chronic credit crisis in the eurozone rattled investors. Anemic growth in the US economy is another factor that dented investor confidence. What's worse, there are still no signs of hope as national leaders and policymakers continue to grapple with evolving macro-economic problems.

A spate of disappointing domestic economic statistics will only add to the list of global issues. The Centre's fiscal situation is in a mess. The current account deficit has swelled and the external debt is also increasing. Inflation of course is the enemy no.1.

The near-term prospects don't appear bright amid mounting worries that Greece will default sooner or later. The ECB's policy meet this week will be keenly followed. US jobs data will be another key data to keep a close watch," said IIFL report.

At 11:15 am; Bombay Stock Exchange's Sensex was at 16197.29, down 256.47 points or 1.56 per cent. The 30-share index touched intraday low of 16088.98 and high of 16255.97.

National Stock Exchange's Nifty was at 4865.95, down 77.30 points or 1.56 per cent. The broader index touched a high of 4879.15 and low of 4833.50 in trade so far.

BSE Midcap Index was down 1.37 per cent and BSE Smallcap Index slipped 1.03 per cent.

BSE Realty Index was down 3.28 per cent, BSE Metal Index fell 2.80 per cent, BSE Bankex declined 2.50 per cent and BSE Capital Goods Index moved 1.80 per cent lower.

DLF (-4.62%), Jindal Steel (-3.89%), Tata Steel (-3.78%), Hindalco Industries (-3.54%) and ICICI Bank (-3.46%) were amongst the major Sensex losers.

M&M (1.36%), Maruti Suzuki (0.80%), Coal India (0.71%), Tata Motors (0.32%) and Bajaj Auto (0.24%) were amongst the major gainers.

Market breadth was negative on the BSE with 1592 declines against 736 advances.

Asian markets were also down on eurozone concerns. Hang Seng fell 4.18 per cent, Nikkei 225 was down 1.77 per cent and Taiwan Weighted declined 2.93 per cent. 

name- deepak kumar jha
pgdm 3erd sem (2010-12)