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Sensex loses 108 points on weakness in Midcap stocks become more visible

August 16th, 2011

It is a mixed bag for Asian markets this morning. Nikkei and KOPSI closed in the green while Strait Times, Hang Seng and Taiwan Index closed marginally in the red.

A similar situation is witnessed in Indian stock markets as well. The NSE Nifty closed the day 0.73% lower at 5035.80 and losing 37.15 points. Sensex closed at 16730.94 losing 108.69 points. Early trades of the day are in the green and more range-bound with a downward bias. However things changed a bit after the European markets opened when the Nifty slipped into the red. It made few attempts to come back into the green but it ended more of a failed attempt.

Meanwhile the US markets opened for the Aug 16 session and are in the red. Fitch has reassured that the American rating is at AAA with an stable outlook.

Experts are not saying that the first major signs of weakness is appearing but many sections are unanimous that a 2008-like panic might not come. With interest rate of fixed deposits and other fixed income products looking attracting, investors should consider increasing their debt income portion.

DLF (BSE: 532868; NSE: DLF; ISIN: INE271C01023) is imposed a penalty of around Rs 600 crore by CCI for abuse of dominance. The script tanked near about 6% today and closed at Rs. 189. Experts believe that many more companies are in the queue to be slapped with the penalty. Realty stocks are in trouble times and almost make the first of the list of both investors and trades selling radar when any bad news comes out.

Top losers of the day are Reliance Communication (down 8.06%), Jaiprakash Associates (down 7.82%), Reliance Capital (down 6.04%) and Reliance Power (down 5.76%). ADAG stocks are amongst the major losers in trading today. Top gainers include TCS, BHEL (both up over 2%), Bharti Airtel and Ambuja Cements (both up over 1%).

Much of the focus was on the Midcap stocks that tanked today. Nifty Midcap 50 lost 2.39%. IVRCL Infra that posted bad set of numbers is down 19.48%. NCC is down 13%, HDIL is down 11.75%, LITL and Punj Lloyd have shed 10.9% each. Patel Engineering is down 10.77%. Moser Baer is down 9%. To put in simple numbers, 41 of the 50 stock index are down and this indicates how much weakness is around.

Entry Filed under: Equity Markets, Real Estate & Construction, Closing Bell