Markets Open Negative, Major Sectors Down

As expected in our morning update, the Indian markets have opened on a negative note today. The markets continue to remain weak on the back of weak global markets and domestic issues. The weak opening of the Asian market today led the downfall. The Sensex and Nifty are down by 0.45% and 0.54% respectively. All the major sectoral indices are trading in losses. Pharma, Realty and IT are among the major losers, down by 1.22%, 1.15% and 1.10% respectively. Others indices are down in the range of 0.37%-0.99%.

Other Asian markets opened in the negative territory today. Investors are concerned over the weakening global growth, especially that of China. The country posted surprisingly weak trade numbers for Apr 2012, indicating that the economy continues to face headwinds from both home and abroad. The Hang Seng, Nikkei and Shanghai are trading lower by 1.19%, 0.73 and 0.76% respectively.

Back home, among the Sensex shares, DLF, Hindalco Industries, Infosys and Maruti Suzuki are trading lower by 1.26%, 1.36%, 1.39% and 2.44% respectively. Among the major gainers, Bajaj Auto, Hero MotoCorp and BHEL are leading with gains of 0.87%, 1.53% and 0.64% respectively.

In individual stocks, SKS Microfinance has jumped by 13% to Rs 100.65 after the Cabinet cleared the microfinance bill, which will supersede the states' legislation for microfinance institutions.

Sintex Industries fell 3.03% to Rs 59.15 on the BSE after the company reported weak Q4 numbers.Its net profit fell by 45% to Rs 91.23 crore and its net sales declined by 30.6% to Rs 1015 crore.

The market breadth, which indicates the overall health of the market, is negative. On the BSE, 1204 shares declined and 700 shares rose. 95 shares remained unchanged.

We expect the markets to remain volatile for the day.