Markets Trading Lower, In Line With Global Cues

As expected in our morning update, the Indian markets opened in the negative territory in line with global cues as overnight US and European markets tanked heavily. At present, both the indices are trading lower, with the Sensex down by 111 points to 17130 and Nifty down by 36 points to 5207 points. Yesterday market had seen some buying which helped the broader Indices to close on a positive note. Among the sectors, Metals, Oil & Gas, Bankex, capital goods and consumer durables are trading lower down more than a per cent while on the other hand health care is the only sector which is trading marginally in the positive zone.

Other Asian markets too are trading on a weaker note with Hang seng and Nikkei down more than one per cent while Shanghai is trading marginally in the red zone. Asia markets are looking weak after the consumer durable major Sony Corp posted a record loss and after the bond yield of Italy and Spain surged which further resulted in to speculation that European debt crisis is worsening impacting the world’s growth prospects.

Back home, Metals pack are showing lackluster performance and the scrip’s are among the leading Index loser. Sterlite Industries and Jindal steel are trading lower 2.35 and 1.98 per cent respectively. Banking majors HDFC bank, ICICI bank and SBI are trading lower in the range of 1.19 to 1.24 per cent on the back of speculation that RBI might not cut the rate in its monetary policy which is scheduled next week. Other stocks like Hindalco, Maruti Suzuki, NTPC, HDFC etc are trading marginally in the red zone. On the other hand only four stocks are trading higher. Auto major Mahindra and Mahindra and Tata motors are trading lower 0.76 and 0.56 per cent respectively. Other stocks like Cipla and Infosys are trading marginally in the green zone.  

Man Infraconstruction is trading lower 1.05 per cent to Rs 197.35, despite bagging order worth Rs 62 crore. Gas companies like Indraprastha gas has witnessed some buying as the stocks is trading up 2.83 to Rs 236.10, after been beaten down in the past couple of trading sessions. Stock is looking nervous after Petroleum and Natural gas Regulatory board (PNGRB) directed company to refund excess tariff.

 The market breadth, which indicates the overall health of the market, is weak. On the BSE, 1014 shares declined and 787 shares rose. 82 shares remained unchanged.

 We expect the market to remain volatile for the day.