Markets Closes In Red, Ranbaxy Posts Strong Q1 Numbers

After witnessing a lacklustre performance for the day, the Indian markets closed on a negative note. Weak global cues, especially from the European region, and domestic issues such as high inflation, a feeble rupee and muted quarterly earnings kept the sentiments negative. The Sensex and Nifty closed with losses of 0.40% and 0.50% respectively. All the sectors are in the negative, except FMCG and IT, which closed with gains of 2.69% and 0.21% respectively. Among the major losers, Realty, Metals and Bankex are down by 2.99%, 2.06% and 1.89% respectively, dragging the markets lower.

The peer Asian markets continued to witness a downfall, and closed in the deep red after the US reported weak job data numbers last week. Moreover, the election results in Europe and the failure of the leading party has created uncertainty over the bailout plans.

After opening on a positive note, the European markets have lost their gains and are currently down. The major European markets like FTSE, CAC and DAX are down by 1.04%, 1.03% and 0.49% respectively. In the opening session, the markets had a technical rebound after falling in the last few sessions. However, this was offset by the falling Spanish banks, which were dragged after news emerged that the government will ask them to raise money to cover their assets.

Dow Jones Futures is currently trading 57 points or 0.44% down at 12810, indicating a negative sentiment in the US markets.

The market breadth, which indicates the overall health of the market, was negative. Out of the 3186 stocks traded on the BSE, 2051 declined, 1006 advanced and 129 remained unchanged.

We expect the markets to remain negative on the back of weak global sentiments and a poor earnings season.