Markets in the red on negative global news flow

The Indian markets continue to trade on a negative note, with the Sensex falling below the 16000 mark by over 192 points while the Nifty is down by 64 points following weak global cues.

In the US, the stocks ended in the red on Wednesday, Dec 14, 2011, continuing their fall from the last 3 sessions. Investors undermined the mood in the markets after the Fed policy meet, which refrained from taking any step to boost the economy. Heavy selling in gold, metals and the Euro took the markets further down.

Asian markets too continue their fall from the last 3 days amid concerns over a slowdown in the economic growth of China and Japan. Higher bond yields also worried investors, as Europe may find it difficult to fight the debt crisis with higher financing cost.

The European bourses ended lower on Wednesday, Dec 14, 2011, their lowest levels in the last 2 weeks. This was also following the US Fed's reluctance in taking any stimulus measure to boost the economy.

Back home, all the BSE sectoral indices are trading on a negative note. CG, CD and Metals have taken most of the beating, and were down by nearly 2% each. All the other indices like Auto, Tech, Power, IT Bankex and PSU are down by 1%-1.5% each.

All 30 stocks in the Sensex were in the red tick. BHEL, Tata Motors, Hindalco, Tata Steel, Sterlite, JP Associates, DLF, HDFC Bank, SBI, Infosys, Reliance Industries and Tata Motors were all down by 1%-2.5%. Bharti Airtel, Hindalco and Maruti Suzuki took most of the beatings, and were down between 3%-4% each.

The market breadth, which indicates the overall health of the market, is very weak. On the BSE, 1442 shares fell, 434 shares rose and 74 shares remained unchanged.

We expect the markets to remain negative 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.