Markets down almost 1%

As expected in our morning update, the Indian markets opened in negative territory today. At present, both the indices are trading in the red zone, with the Sensex down 146 points at 17606 and Nifty down by 48 points at 5336. Among the sectors, Realty, Capital Goods and Bankex are among the worst performers. The Healthcare and FMCG indices are trading marginally higher in the green zone.

On the other hand, the other Asian markets are trading in a mixed bag. The Nikkei and Shanghai are trading marginally in the green zone, up 0.07% and 0.12% respectively, while Shanghai is trading down by 0.49%. Shanghai is down on the back of speculations that China may tighten its monetary policy, which will further limit growth.

Back home, Capital Goods major, BHEL, is the leading index loser, trading lower 3.49% at Rs 297.45. L&T is trading down 1.79% at 1284.70. Banking stocks are also trading lower, with ICICI Bank and SBI down by 2.55% and 1.83%. The stocks of GAIL India, Bharti Airtel, NTPC, HDFC, Sterlite Industries are trading marginally in the red zone. On the other hand, Sun Pharma is the leading index gainer, up 2.27% at Rs 562.45. Others like Coal India, TCS, Jindal Steel and HUL are trading marginally in the green. ONGC is trading almost flat, up 0.03% to Rs 293.45. The company is going to carry out its FPO activity today.

Among individual stocks, Sundaram Multi Paper touched its new 52-week high today, and is currently trading up 6.04% at Rs 50 after the company recommended bonus shares. Disa India is up by a whopping 20% to Rs 2413.20 after its Board of Directors recommended a 2000 per cent dividend (i.e. Rs 200, FV Rs 10).

The market breadth, which indicates the overall health of the market, is weak. On the BSE, 1058 shares declined and 722 shares rose. 74 shares remained unchanged.

We expect the markets to remain volatile for the day, with a negative bias.