Markets extended their morning losses.

Indian markets have extended their morning losses with both the bourses down more than 1 per cent tracking weakness in the other Asian and European markets. Sensex heavyweights like Reliance Industry, BHEL have extended the morning losses by falling 1.96 % and 2.63 % respectively.  

Asian Markets too extended their losses and witnessed similar downfall between 1 to 2% amid concerns over European debt Crisis as it continues to undermine the sentiment of the investors. Investor confidence also took a hit after China and Singapore showed a bleak picture of the global economy. European markets declined on back of concerns that US Lawmakers may fail to reach at an agreement on budget cut raising the prospect as America may face another credit downgrade.  

Among the BSE sectoral Indices barring FMCG, Pharma and realty all the other indices have taken huge beatings with Oil&Gas, Bankex and Metal taking most of the beatings down by nearly 1.5 %. I.T, Tech and Auto were also trading down between 1-1.5 %.

Back home, Tata Motors and Bajaj Auto crashed 3% each on back of concerns that higher interest rate could impact sales of automobile companies. In the banking and financial space, HDFC, HDFC Bank, ICICI Bank and SBI dropped 1.4-2% due to concerns about the rising default in the slowing economy. Whereas among the Sensex stocks, Coal India, Jaiprakash Associate and DLF was trading with marginal gains.

The market breadth, indicating the overall health of the market, is very weak. On BSE, 1571 shares fell and 984 shares rose. A total of 128 shares remained unchanged.

In conclusion, we expect the markets to remain negative for the rest of the day and advise readers to play with cautious.