Markets Open On Weak Note

The Indian markets continue to remain weak, and opened on a negative note today. The concerns from Greece are hampering investors’ sentiments across the globe. The political changes in European have raised concerns over the uncertainty of the austerity measures to bail out the country from the debt crisis. The Sensex is down by 77 points, while Nifty is trading lower by 29 points. Of the sectors, FMCG, IT and CG are trading higher by 1.67%, 0.35% and 0.04% respectively. All the other indices are trading negative, dragging the markets lower. Realty, Metals, Bankex, etc. are down between 1.14% to 2.27%.

The other Asian markets have also opened on a negative note. The major markets Nikkei, Hang Seng and Shanghai are down by 1.51%, 0.95 and 1.35% respectively. Greek concerns are worrying investors over the global growth issues and recovery.

Yesterday, the European markets closed in the deep red on the back of concerns on the bailout plan for Greece. The change in the political situation will hamper the bailout plans for the country.

Back home, among the 30-share Sensex, DLF is the leading index loser, down 3.18% at Rs 184. Others like SBI, ICICI Bank and HDFC are trading lower by 1.34%, 1.90% and 0.80% respectively. Among other major losers are Bharti Airtel, Cipla, ONGC, Sterlite Industries, M&M, Maruti Suzuki, etc., all down between 1%-2.63%.

Hindalco is down by 2% after the company reported weak numbers for the Mar 2012 quarter. The newly listed stock, TBZ, a leading jewellery company, debuted on the BSE at Rs 113 below its listing price of Rs 120.

Index heavyweight, RIL, is currently down by 1.15% at Rs 700.50 after the news that the company has lowered its estimates of proven gas reserves from its Indian blocks. Coal India slipped nearly 2% on the BSE after signing fuel supply agreements with 13 power units, while some of them have refused to sign the pact.

The market breadth, which indicates the overall health of the market, is weak. On the BSE, 1177 shares declined and 919 shares rose. 95 shares remained unchanged.

Ahead in the day, we expect the markets to remain negative on the back of worldwide concerns. Further, a weak rupee, high inflation and muted quarterly earnings in India will keep the markets shaky.