Sensex Ends 66 Pts Down

Indian equity criteria for a closed slightly lower in the middle of the cross-trading on Thursday. The market gyrated around its previous closing value of the morning trade due to lack of global cues.

In the second half trading was a bit better because of lower than expected decline in European markets before the EU summit.

NSE 50-share Nifty fell 25.45 points, to close at 5,541.60 and the BSE 30-Share SENSEX fell 66.19 points to end at 18,436.19. Broader indexes slid over 0.4% each.
Investors were skeptical of the American debt crisis, debt default and inflation. Raj Bhatt said Chairman and CEO of Elara Capital is all set to reduce wages to increase concern for investors.

"We do not see much inflows coming into India in the next two quarters. Downgrades and a possible inflation over the next few quarters is a big problem," he says. He believes that foreign institutional investors (FII) flows will come to India early next year, when concerns are resolved.

The French CAC, German DAX and UK FTSE was trading 0.8% lower (during the closing of Indian shares) before EU leaders meet in Greece, the second financial rescue package.
It was reported that Berlin and Paris seemed to have reached an agreement on a financial rescue package early Thursday morning in Greece.

Heavyweight Reliance Industries has played an important role in today's sell-off. Shares fell 1.75% - This may be because the cabinet deferred a lot of BP-RIL.
Financial shares have been excised - BSE Bankex slipped 1%. HDFC Bank, SBI, Axis Bank, ICICI Bank, PNB and IDFC fell 0.5 to 2%. Kotak Mahindra Bank fell 3%, in spite of good Q1 numbers.

NTPC, BHEL and DLF were the other losers in the deal. Reliance Communications was the biggest loser with a fall of 4% is the Nifty.

Howerver, buying in FMCG, the defense sector for a limited downside. ITC and the Hollow was approximately 0.5%. ONGC, Infosys and Wipro too went to more than 0.5%.
Hero Honda was the top gainer post strong numbers, growing by 1.6%. First quarter net income rose 13.5% in the company for more than a year ago to Rs 557.89 crore was supported by strong growth in sales volume. Revenue from India's largest two-wheeler maker picked up 32% from one year to Rs 5,683.33 crore.

In MidCap space, open Wednesday jumped almost 11% after strong Q1 numbers. CRISIL, SKS Microfinance, Hexaware Tech, and Petronas LNG rose by 9.6%.

But slipped Apollo Tyres, NCC, Shree Global, Orchid Chemicals and Dish TV India to 4-5%.

Crompton Greaves, which had lost 30% of the previous two days reached 2.5% short today.

About two stocks fell for every share in the last National Stock Exchange.