Markets continue to trade in the negative

BSE Sensex was down 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 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 markets has been the depreciation of the Rupee against the US dollar, which is currently hovering around Rs51.33/USD.

Asian markets continue to trade lower, down more than a percent after metal stocks dropped and concerns mounted about bad loans increasing in China.

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 are 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 are down by 1% 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 at DSIJ 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.