Heavy rain engulfs markets

The markets broke its winning streak ld by selling in ITC, HLL, Tata Power, ONGC and Ranbaxy. The sentiments of the investors were muffled as heavy rains gripped Mumbai, India`s commercial hub.

Volumes also suffered on the bourses as many traders preferred to stay home as rains flooded airports, roads and railway tracks. For most part of the trading session the markets remained lackluster on lack of any fresh triggers.

Despite firm global markets, led by the US market, and the institutions (FIIs and MFs) renewing their buying spree gradually over the past couple of days, dull weather spoiled the party for the bulls.

Nikkei Index added 0.43% and Hang Seng Index was up by 0.26%. US stocks closed higher on Monday, as fund managers made portfolio additions as the third quarter got underway and a set of reports pointing to slowing economic growth pleased investors worried about inflation.

The S&P 500 Index added 9.99, or 0.8%, to 1280.19. The Dow Jones rose 77.80, or 0.7%, to 11,228.02. The NASDAQ jumped 18.34, or 0.8%, to 2190.43. Finally, the benchmark Sensex lost 30 points at 10665 and NSE Nifty added 12 points at 3139.

In fact, it has been pouring heavily in and around Mumbai over the past many days, bringing back haunting memories of 26th July, 2005 when the commercial capital was badly marooned. Volumes fell sharply on the bourses. The turnover on BSE was at Rs. 20.53bn, as compared to Rs. 24.11bn during previous trading day down by 15%.

Auto stocks pared its early gains. However, major auto scrips managed to close in green. Bajaj Auto was up by 2% to Rs. 2794. Tata Motors was up by 1.23% to Rs. 798 and M&M was up by 1.42% to Rs. 627. Company's June Tractor sales rose up 32% at 10,410 units.

FMCG stocks witnessed profit booking. HLL was down by 2% to Rs. 233, ITC was down by 3.5% to Rs. 178.50 and Colgate fell by 1% to Rs. 409.

Tech stocks also witnessed profit booking after recent run up in stock prices. Infosys was down by 0.15% to Rs. 3150, Wipro fell by 0.5% to Rs. 501, HCL Tech was down by 3% to Rs. 494 and NIIT Ltd fell by 2.33% to Rs. 361.

Capital Goods also closed on a poor note. BEL fell by 1% to Rs. 1075, ABB lost 2.50% to Rs. 2439, L&T was down by 3.50% to Rs. 2192 and Siemens declined by 1.50% to Rs. 886.

However, banking stocks held firm in a dull market led by PNB. The scrip rose added 4% to Rs. 336, Bank of Baroda was up by 6% to Rs. 209, Corporation Bank gained by 2.5% to Rs. 226 and SBI traded firm at Rs. 756, up by 1.80%.