Markets extend yesterday's losses

As mentioned in our morning update, the Indian markets opened negative in line with global cues. At present, both the indices are extending yesterday’s losses and are trading in the red zone. The Sensex is down 243 points at 16244 and Nifty is down by 66 points at 4877. All the sectoral indices are trading in the red zone, with Auto, Realty, Capital Goods and Power taking the most beating, all down by more than 1.50%.

Asian markets are also trading in the negative territory. The Hang Seng and Nikkei are trading down by 2.63% and 1.61% respectively.

Back home, Capital Goods heavyweights BHEL and L&T shed 2.39% and 1.30% respectively. Auto stocks like Tata Motors, Mahindra & Mahindra, Bajaj Auto etc. are trading down in the range of 1.71%-2.50%. The Metals pack, which includes Sterlite Industries, Tata Steel, Jindal Steel and Hindalco are also trading in the red zone. Other stocks like SBI, Cipla, Wipro, TCS, etc. are trading marginally in the negative territory.

SBI is the sole index stock that is trading in the green zone, up by 0.17% to Rs 1869.

Ajmera Realty and Infra is trading down 1.84% to Rs 103.95 following the news that the company has acquired a 100% stake in Ajmera Biofuel.

Essar Oil is trading higher by 0.89% to Rs 68.25, after the company announced commissioning of its izomerization unit, the first expansion unit that is ready for commercial production at the Vadinar refinery in Jamnagar, Gujarat.

The market breadth, which indicates the overall health of the market, is very weak. On the BSE, 527 shares rose and 1167 shares fell. 66 shares remained unchanged.

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