Markets dip further, Sensex below 18000

The Indian markets have further increased their losses, with the Sensex down by 0.76% and Nifty down by 0.84%.

The scenario in the other Asian indices has further improved, with all 3 key indices closing with gains. The shares rose over better US economic data. The indices in Taiwan and South Korea also held their intraday gains.

European markets have opened in the green over the positive sentiment created by economic data in the US.

Among the sectoral indices, Bankex has further slipped in the red, shedding 173 points so far. CG, Realty and Oil & Gas are also seen down by over 1%. On the other hand, CD and Metals have outperformed the broader market, with CD up by 2.23%.

Of the Sensex stocks, 18 have advanced. Sterlite Industries has held its ground with 2.96% gains and we expect the scrip to end the day with gains. RIL and ONGC have slipped into the red zone, while other Energy stocks have retained their morning gains. On the announcement of the stake sale, HDFC has slumped by over 4%. Banking stocks SBI, ICICI Bank and HDFC Bank are also in negatives. Capital Goods stocks BHEL and L&T are also in the losers list. Steel and Auto stocks are in positives, and we expect them to retain their intraday gains until closing.

The shares of Oracle Financial have surged by 12.74% over the news of the delisting, although there has been no official announcement made by the management. Ranbaxy is seen trading in negatives. Videocon Industries has surged by 4.6% over the rising value of its Mozambique assets.

The market breadth, which indicates that the overall health of the market, is still negative. Out of a total of 3148 stocks, 1202 stocks advanced, 1824 stocks declined and 122 stocks remained unchanged.

We anticipate that the markets may trim their morning losses by the close of day.