Markets continue to trade negative

The Sensex fall by over 100 points in the opening trade, following weak global cues.  Last week, the markets witnessed a heavy sell off on back of the ongoing concerns over euro debt crisis and domestic growth issues. The market saw a heavy sell off and was down by 5 per cent.  The Nifty fell below the psychological 5,000-mark, to end the week with a loss of 263 points at 4,906.

One of the concerns for the falling market has been the depreciation of Rupee against US dollar which is currently hovering around Rupees 51.33/USD.

Asian markets continued to trade lower down more than a per cent after Metals dropped and concerns mounted that bad loans in China increased. 

Among the sectoral indices BSE Oil & Gas, Metal, Consumer durables, and Bankex are leading the losses down by nearly 1%.

Heavyweights Bharti Airtel (on 2G scam news), Tata motors and Reliance Industries were down 2% each.While companies like Sterlite, Hindalco, ICICI Bank, Axis Bank, HDFC Bank, Kotak Mahindra Bank, IDFC, JSPL, HCL Tech, Reliance Communications, Reliance Infra, DLF, ITC and M&M were down by 1% lower in early trade.

The market breadth, indicating the overall health of the market, is very weak. On BSE, 1046 shares fell and 720 shares rose. A total of 78 shares remained unchanged.

In conclusion, we expect the market to remain negative for the day. Also European markets will provide some vital cues on the desired direction of the market trend in late afternoon session. Nevertheless we shall keep updating you regularly through our market commentary.