Stock markets extend their morning losses, down 1.5%

At noon, Indian markets extended their morning losses and are trading down by 1.5%. All the sectors are trading in the red zone with Metal, BANKEX, and Realty etc down by more than 1%.

Meanwhile there seems to be bloodshed in the European markets, which have opened heavily in the red zone owing to renewed concerns over the euro-debt crisis.

 
The Asian markets continued their losses as data added to the evidence that the regional economies are slowing as Europe’s debt crisis curb exports. Nikkei and Hang-Seng are in deep red while Chinese market is trading flat.

Back home, ICICI bank is among the top losers and is down 3.33% at Rs 899.50. Other Metals stocks like Sterlite Industries, Jindal Steel, and Tata Steel are trading down by 2 to 3%. Other prominent losers include Mahindra and Mahindra, Hero MotoCorp, DLF, JP Associates and Reliance Industries who are down 1 to 2%.

Sun Pharma announced USFDA approval for generic Cardizem which helped the scrip to move up couple of% at Rs 513. Hindustan Unilever continued its yesterday’s rally (after posting robust Q2FY12 numbers) and is up 2% at Rs 382.55. Other scrip like SBI, Bharti Airtel, BHEL, Tata Motors etc are also trading in the green. Gillette India is trading down 4.11% at Rs 2130 after posting dismal Q1 numbers (Year end – June). Even with an increase in Net Sales by 13.4% to Rs 280 crore its Net Profit tumbled 57% to Rs 18 crore.

Ballarpur Industries Net profit fell by 38% to Rs 25.38 crore which resulted the scrip to trade lower 5.41% at Rs 27.95 Fortis Healthcare India is to Acquire Fortis Healthcare International for USD 665 mn. This move will create Asia Pacific’s fastest growing integrated healthcare delivery network. News drives the scrip higher by 3.49% at Rs 128.85.
 
The market breadth, indicating the overall health of the market, is weak. On BSE, 1546 shares fell and 1033 shares rose. A total of 110 shares remained unchanged.

In conclusion, we at DSIJ expect the markets remain negative for the rest of the day. Investors are also waiting for monetary policy meeting by the European Central Bank and the U.S Federal reserve, as well as the G-20 summit, with focus to stabilize global financial markets.