The benchmark indices in the Indian stock market continued to trade in the red. Stocks from the FMCG and capital goods space are trading firm while stocks from auto and realty space are trading weak.
The BSE-Sensex is down by 51 points while NSE-Nifty is trading 20 points below the dotted line. BSE Midcap and BSE Small cap indices are down by 0.5% each. The rupee is trading at 44.05 to the US dollar.
Real Estate stocks are trading mixed with Mahindra Lifespace and IVRCL leading the gains. However, Patel Engineering and Sobha Developers are trading weak. As per a leading financial daily, the Income tax authorities of Haryana have detected a nonpayment of tax liability worth Rs 10 bn by construction major DLF group. The tax liability was on an income of Rs 25 bn earned from leasing out the SEZ (Special Economic zone) properties in Gurgaon and Chennai during 2008-09.The main companies under scanner are DLF Infocity Developers, Chennai and DLF Cybercity Developers, Gurgaon. The state IT authorities have rejected companies’ claims of exemption under SEZ Act. Instead, the companies have been issued notice to pay Rs 10 bn on the income in question as it comes from sale of SEZ properties and qualifies as a short term capital gain.
Most of the large cap software stocks are trading in the red. Wipro, Moser Baer India and Tech Mahindra are leading the pack of losers. The stocks of CMC Ltd and NIIT are trading in the green. As per a leading financial daily, Tech Mahindra has bagged a contract of size US$ 250 m. The deal is to manage the IT systems of Vodafone Hutchison Australia (VHA) for five years. The Mahindra group company has won the deal by replacing larger rivals IBM and Ericsson. Recently Tech Mahindra has been active in the Australian market. It is also vying for a back-office deal from the region's largest telecommunication company, Telstra. The stock of Tech Mahindra was trading in the red in the initial hours of the trade.
For information on how to pick stocks that have the potential to deliver big returns, download our special report now!
Read the latest Market Commentary
What else is happening in the markets today? Dig in...
In this edition if Momentum Moves, I'll show you why the Nifty is weak and could head to 14,000. On the other hand, smallcaps are looking good.
Indian share markets end deep in the red with the Sensex down by 1,939 points and the Nifty ending down by 568 points.
ONGC share price is trading down by 7% and its current market price is Rs 118. The BSE OIL & GAS is down by 4.0%. The top gainers in the BSE OIL & GAS Index is CASTROL INDIA (up 1.3%). The top losers are ONGC (down 7.1%) and GAIL (down 6.3%).
ULTRATECH CEMENT share price is trading down by 5% and its current market price is Rs 6,487. The BSE 500 is down by 3.4%. The top gainers in the BSE 500 Index are SOUTH IND.BANK (up 10.4%) and JAGRAN PRAKASHAN (up 10.0%). The top losers are ULTRATECH CEMENT (down 5.0%) and BAJAJ FINSERV (down 6.3%).
JAGRAN PRAKASHAN share price is trading up by 10% and its current market price is Rs 60. The BSE 500 is down by 3.2%. The top gainers in the BSE 500 Index are JAGRAN PRAKASHAN (up 10.1%) and RCF (up 11.0%). The top losers are MAHINDRA CIE AUTO. and AJANTA PHARMA (down 0.1%).
UPL share price is trading down by 5% and its current market price is Rs 589. The BSE 500 is down by 3.2%. The top gainers in the BSE 500 Index are RCF (up 11.0%) and SOUTH IND.BANK (up 10.4%). The top losers are UPL (down 5.4%) and BAJAJ FINSERV (down 6.2%).
View More Indian Share Market NewsLast time the smallcap index crossed 19k a big correction followed. Here's what makes it different this time.
A look at what India's top equity mutual funds bought and sold in January 2021.
Do you enjoy reading Tesla and Bitcoin stories? Here's a not so famous small-cap stock to profit from the rise of EVs.
In this video, I'll show you how to get started on the path to daily trading profits.
More
Equitymaster requests your view! Post a comment on "Auto stocks drive markets lower". Click here!
Comments are moderated by Equitymaster, in accordance with the Terms of Use, and may not appear
on this article until they have been reviewed and deemed appropriate for posting.
In the meantime, you may want to share this article with your friends!