Markets close in red on the back of weak global cues

Indian Markets closed in sharp red on the back of weak global cues. European markets tumbled on fears that Greece may soon default. CAC, DAX and FTSE all are down by 2 to 4 per cent. All the sectors closed in the red with Auto, Realty, Bankex and Metals taking the worst beating down more than 1.5 per cent.

The Dow Jones Futures is currently trading 172 points or 1.45 per cent down at 11725 indicating a negative sentiment in the US markets.

Among the SENSEX Index heavyweight Reliance Industries fell after the company refuted speculation that it is considering acquiring Valero Energy, Inc. Two other index heavyweights ICICI Bank and L&T fell by 4 and 1.63 per cent respectively.

FMCG giant Hindustan Unilever hit a fresh record high, with the stock extending Monday's 7.38% rally triggered by strong Q2 results. Shares of steel makers were hit after credit-rating firm Standard & Poor's downgraded Korean steel giant Posco to A- from A with a negative outlook.

ACC Ltd cement major reported a Net profit of Rs 157 core in Q3CY12 versus Net Profit of Rs 86.56 crore in Q3CY11 up by 81 per cent. This was majorly on the back of higher other income. The scrip closed down 0.95 per cent at Rs 1183.95.

We advise our reader to keep track of Companies like Allahabad bank, Berger paints, Andhra Bank, Jubiliant Ind, Piramal Life, Hind motors, etc as they are going to post their Q2FY12 numbers tomorrow.

BSE clocked turnover of Rs 2231 crore lower than Rs 2183 crore on 31st October 2011. The market breadth, indicating the overall health of the market, was negative. Out of 3245 stocks traded, 1854 stocks declined while 1261 advanced. A total of 130 stocks remained unchanged.

In conclusion we expect the markets to remain sideways for tomorrow trading session. 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.