Markets in the red, IT & FMCG provide marginal relief

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 zone, with the Sensex down 62 points at 16814 and Nifty down by 22 points at 5040. Among the sectors, IT and FMCG are trading marginally in the green, holding up the market, while the Capital Goods, Power and Realty indices are dragging the markets down.

The Asian markets are trading in a mixed bag. The Hang Seng and Nikkei are trading in the red zone, while Shanghai is trading higher by 0.42%.

Back home, Coal India continued its losses since yesterday, and is down 1.70% at Rs 318.95. Other Metals stocks like Hindalco and Sterlite Industries are trading down 1.13% and 0.96% respectively. Bharti Airtel and BHEL are also trading weak today, down by more than 1%. Other losers include Sun Pharma, Tata Power, HDFC Bank etc., which are trading marginally in the red zone.

On the other hand, Auto stocks like Hero MotoCorp, Bajaj Auto and Maruti Suzuki are all trading higher in the range of 1.48% to 0.21%. HDFC, ITC and Wipro also feature on the gainers list today.

Nestle is trading very flat, up 0.29% at Rs 4224, after the company declared the 2nd interim dividend of Rs 27 per equity share for the year 2011.

UTV Software surged 4.01% to Rs 989, after the govt. approved Walt Disney's proposal of fully acquiring the media firm.

The market breadth, which indicates the overall health of the market, is weak. On the BSE, 748 shares rose and 991 shares fell. 60 shares remained unchanged.

We expect the markets to remain volatile for the day, as WPI, Food, Fuel and Primary Articles' inflation figures are expected today. The European markets will also provide some vital cues on the desired direction of the market trend in the late afternoon session. We shall keep updating you regularly through our market commentary.