Markets extend losses, down by over 1.5%

The Indian markets have extended their morning loses, and both the indices are currently trading deep in the red zone. The Sensex and Nifty are both down by over 1.5%. All the sectors are trading in the red, with Capital Goods, Bankex and Power trading down more than 2% each and dragging the Indices southward.

Other Asian markets are also trading in the negative zone. The Chinese market fell by 1.47% after the govt. signalled caution on easing the monetary policy. 

The European markets also have opened in the negative territory, with the 3 major indices, i.e. CAC, DAX and FTSE down more than 0.50%.

Back home, BHEL continues to extend its morning losses, down 9.01% to Rs 249 on the back of weak management guidance. Metals stocks are also looking dull, with Sterlite Industries and Hindalco down 4.29% and 3.36% respectively. Others like Bharti Airtel, Mahindra & Mahindra, ICICI Bank, Tata Motors and L&T are down in the range of 3%-4.25%. Stocks like SBI, ONGC, Cipla and NTPC are trading marginally in the red zone. The list of index gainers is short, with Sun Pharma in the lead, up 1.97% at Rs 539.30. Other stocks like TCS, Hero MotoCorp, Bajaj Auto, GAIL and Jindal Steel are trading higher in the green zone.

Jyoti Structures plunged 6.18% to Rs 47.10, after reporting dismal Q3 FY12, numbers. During the quarter, the company's net sales increased by 6.5% to Rs 587 cr, while its net profits declined 44% to Rs 13.80 cr on a YoY basis. Supreme Infra is up 6.37% to Rs 222.10, after 3i India Infra Fund invested US$ 61 million in the company’s road projects.

The market breadth, which indicates the overall health of the market, is weak. A total of 1549 shares declined, 1044 shares gained and 104 shares remained unchanged.

We expect the markets to remain volatile for the rest of the day and advise readers to play with caution.