Markets Open On Weak Note

The Indian markets opened on a negative note today after yesterday’s gains. Weak global cues kept the markets muted. Both the Sensex and Nifty are down by 0.47% and 0.55% respectively.

Other Asian markets opened on a weak negative note on continued concerns over the speedy recovery of the US. Investors are now expecting to see more positive economic data post the comments of US Fed chairman Ben Bernanke.

The European markets finished lower yesterday on the back of a disappointing response to the Spanish treasury bill during the auction.

Back home, among the sectoral indices, Pharma, Consumer Goods and Power are leading with gains of 0.53%, 0.53% and 0.17% respectively. All the other indices are trading in the negative zone between 0.11%-1.63%. Among the major losers, Consumer Goods, Bankex and Metals are down by 1.63%, 0.96% and 0.95% respectively.

Among the Sensex shares, all the shares barring a few are trading in the negative zone. Of the major losers, Hero MotoCorp, Hindalco and Sterlite are down by 1.58%, 2.28% and 2.54% respectively. The others are down between 0.22%-1.06%.  Among the few positive stocks, BHEL, Coal India, Cipla, Tata Power, etc. are up between 0.21%- 1.25%.

The market breadth, which indicates the overall health of the market, is negative. On the BSE, 1217 shares fell and 951 shares rose. 96 shares remained unchanged.

We expect the markets to remain negative and volatile for the day ahead of the expiry of the March contract.