Markets trading in the red, follows global cues

As mentioned in our morning update, the Indian markets opened negative in line with global cues. At present, both the indices are trading in the red, with the Sensex down 74 points at 16772 and Nifty down by 21 points at 5028. The Realty, Consumer Durables and Auto indices are trying to pull the market up, and are trading in the green, while Metals, IT, Bankex etc. are trading weak.

The Asian markets are trading in a mixed bag, with the Nikkei and Hang Seng trading in the green. Shanghai continued its losses from Friday, Dec 2, 2011, and is down by 0.63%.

Back home, metals stocks like Hindalco, Tata Steel and Sterlite Industries are among the top index losers, down in the range of 1.50%-2%. Banking stocks like ICICI Bank and HDFC Bank are also trading in the red, down more than 1%. Others in the losers list include Sun Pharma, Infosys, TCS, RIL, etc., which are trading marginally in the red zone.

On the other hand, Jaiprakash Associates is among the leading index gainers, up 1.93% at Rs 68.60. Auto stocks like Mahindra & Mahindra, Maruti Suzuki and Tata Motors are showing some strength, and are up in the range of 0.26%-1%. Companies like Cipla, HUL, SBI etc. are also trading in the green zone.

Praj Industries is trading up 1.60% at Rs 79.30, after the Board approved the buyback of its shares. KNR Constructions is trading higher by 2.08% at Rs 105.50, after the company bagged 3 road projects.

The market breadth, which indicates the overall health of the market, is strong. On the BSE, 818 shares rose and 808 shares fell. 78 shares remained unchanged.

We expect the markets to remain volatile for the day. European markets will also provide some vital cues on the desired direction of the market trend in the late afternoon session.