Markets trading negative, volatility ahead

After yesterday’s rally, the Indian markets have shown a negative opening, as mentioned in our morning update. The BSE Sensex is trading down by over 150 points. The Nifty is also seen trading lower, indicating weak sentiments in the market. Except for Healthcare, all the sectoral indices are trading down.

The Asian indices, though, are trading in the green. The Nikkei up by over 1.26%, while Shanghai and Hang Seng are seen trading up between 0.46% and 0.55%.

At home, Oil & Gas has taking the maximum beating among the sectoral indices, and is down by over 170 points, or 2.13%. The BSE IT index is down by over 1%. The BSE IPO and Small-Cap indices are marginally up, while the Mid-Cap and the BSE 100, 200 and 500 indices are trading in the red zone.

Only a handful of the Sensex stocks are trading in the green. Cipla is up by over 1%. Amongst others are Tata Steel, BHEL, TCS, Hindustan Unilever, Wipro and Bajaj Auto. RIL is seen trading lower by over 2.5%. Hindalco Industries, which rallied yesterday, is also down by over 2%. Money Matters has touched the upper circuit.

RPP Infra has bagged an order of Rs 340 million in Kalpakkam. Eros International Media has reported Rs 53 cr in gross collections worldwide. Mundra Port has reported higher volumes of coal delivered through the port.

As we mentioned in our morning commentary, the financial shares of Kale Consultants, Glenmark Pharmaceuticals, Videocon, Redington India, Punj Lloyd and Subex are trading in the green zone.

The market breadth, which indicates the overall health of the market, is mixed. Out of a total of 2347 stocks traded, 1065 advanced, 1196 declined and 86 stocks remained unchanged.

Investors will await news on the Euro zone Finance Ministers' meet later today on the bailout fund. We expect the markets to remain volatile today.