The Indian market is extending its recent losses on Monday, in tandem with weak Asian peers, after disappointing economic data from China and the U.S. released last week stoked worries about the outlook for global growth.
A raft of key economic data due from the U.S. this week, including retail sales, consumer price index inflation, industrial production and manufacturing surveys are likely to provide further clues on whether the world's largest economy is heading for a double-dip recession or a rough patch in the overall recovery.
Domestically, May inflation data that will be out tomorrow and the RBI's mid-quarter review of monetary policy to be announced on Thursday are certain key events that investors look forward to this week.
The benchmark 30-share Sensex is currently down 106 points or 0.6 percent at 18,163, while the broader Nifty index is down 36 points or 0.65 percent. Oil/gas, metal, realty and banking stocks are bearing the brunt of the selling.
Infosys is down 0.4 percent after the company announced the appointment of three new members to its board. Rival TCS and Wipro are also declining about half a percent each. Maruti Suzuki is down 1.2 percent, as a stir at its Manesar plant continued for the 10th day.
Reliance Industries is losing over 2 percent after oil regulator DGH reportedly refused to recognize three natural gas discoveries made by the company at its KG-D6 block. Separately, the energy giant said it has reached a pact with the Bharti group to acquire the latter's stake in the general and life insurance joint ventures with AXA in India.
Hindalco Industries (down 1.7 percent), DLF (down 1.5 percent), Tata Power (down 1.4 percent), SBI (down 1.2 percent) and Tata Steel (down a percent) are among the other prominent decliners in the Sensex pack.
Kingfisher Airlines is rising 1.5 percent on launching nine new flights on its domestic network. Jyoti Structures is gaining 2.5 percent after its African unit bagged two orders worth Rs 225 crore from South African power utility Eskom.
Bajaj Auto and TVS Motor are rising by 1-2 percent on the buzz that the government will extend the popular DEPB scheme for another three months. Indo Asian Fusegear is posting a modest 0.3 percent gain ahead of a board meet today to consider the conversion of 8.90 lakh zero coupon convertible warrants into equity shares.
Idea Cellular (down 0.2 percent) and Tourism Finance Corporation of India (up 0.6 percent) are trading mixed ahead of their quarterly results today. HCL Infosystems is down half a percent after the company sold its digital entertainment business to its wholly-owned subsidiary HCL Security. Colgate Palmolive is down 1.4 percent and Castrol India is losing 1.6 percent on going ex-dividend.
Hindustan Construction Company is down 2.5 percent after the Environment Ministry asked the Maharashtra government to initiate action against its subsidiary Lavasa Corp. for alleged violation of environment rules.
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