Markets Shed Gains As Europe Opens In Red

The Indian markets have given up all their morning gains after the European stocks slid on the woes in Spain. The BSE Sensex has shed 48 points to touch 17082.22, while Nifty has tanked 15 points to 5173.6. ICICI Bank has surged by 2.43% after it posted net profit growth of 15% to Rs 1810 crore and also announced an annual dividend of Rs 16.50 per share.

Following the downgrade of Spain by S&P, the European markets have opened in the red. DAX and CAC have shed more than half a percent each, while FTSE has lost 0.17% at this time.

The peer Asian markets have also turned negative, with all the key indices trading in the red. The rupee has further depreciated against the US Dollar and the Euro.

Among the Sensex participants, besides ICICI Bank, M&M is holding its morning gains.TCS, Infosys and Wipro are trading in negatives, though the better economic data has partially lifted the sentiment on the stocks and the sector. NTPC has shed some of its morning gains, but is still in the green. DLF, which had gained in the morning over news of the land sale in Mumbai, has now lost 2.59%. Coal India is still trading in negatives.

Most of the sectoral indices are currently trading in losses. The IT index though, supported by the big 3, is up 0.68%.

In individual stocks, Bajaj Finserv is up 5.06% after reporting a good set of Mar 2012 quarter numbers. Biocon has beaten the forecasts and risen by 2.39%. The company has also recommended a dividend of Rs 5 per share. Strides Arcolab has gained by a further 2.13%. Power stocks such as Siemens, Thermax, GMR Infra, Torrent Power, etc. are still trading in positives after the Power ministry's statement that it will not approve Coal India's minimum penalty clause.

Companies that have recommended dividend this afternoon are Zodiac Clothing, Monsanto India, GMM Pfaudler, eClerx Services, Deepak Nitrite and Tata Coffee.

The volumes in Alstom T&D, Natco Pharma, Ajanta Pharma, Trent, ICICI Bank etc. are strong. Top turnover is seen in ICICI Bank after its quarterly results announcement. Balakrishna Industries has touched a new high at Rs 290.

The market breadth is negative at this time. Of a total of 2731 stocks traded, 1062 stocks have advanced, 1550 stocks have declined and 119 stocks have remained unchanged.

With two countries' grading being revised to negative, we expect the markets to remain under pressure.