Markets Trade Lower, Sensex Below 16K

As expected in our morning update, the Indian markets opened sideways in the negative territory today. At present, both the indices are trading in the red zone, with the Sensex down 0.58% at the 15933 levels and Nifty trading lower 0.57% at the 4832 levels. All the sectors are trading in negatives, with Consumer Durables, Power, Auto, Realty being among the worst performers. Others like Metals and IT are trading marginally in the red zone.

The rupee has seen a fall today too, and this is seeming unstoppable. The RBI has also not been able to take appropriate steps. The currency has once again depreciated against the dollar, marking a record low. It is currently trading at 55.79, depreciating 0.73% against the USD.

Other Asian markets too are trading lower, with the Hang Seng, Nikkei and Shanghai trading lower in the range of 0.50%-1.7%. The markets are trading lower on the back of fears that the European debt crisis may worsen and also after the global ratings agency, Fitch, downgraded the Japanese credit rating and further disappointment was seen from the nation’s trade data.

Back Home, Tata Power is the leading index loser, down 4.04% at Rs 86.80 after the company reported dismal Mar 2012 quarter numbers. It posted a net profit of Rs 1169 million against Rs 2677 million, which was posted in the similar quarter last year. Auto stocks are also looking weak with the likes of Maruti Suzuki, Hero MotoCorp and Bajaj Auto down in the range of 1.77%-2.31%. FMCG stocks continue to slide, with ITC and HUL trading down by around 0.5%. Others like Coal India, Wipro, L&T, Infosys, etc. are also trading marginally in losses.

On the other hand, GAIL India is the leading index gainer, up 3.2% at Rs 324. Other stocks like SBI, BHEL, Cipla and TCS are trading marginally in the green zone.

Suzlon Energy is down 2.33% to Rs 20.95 despite news that the company's 138 MW project for Cennergi is among the preferred bidders selected by the South African Department of Energy. Thomas Cook India is up 0.4% to Rs 62.90 after media reports that Fairbridge Capital, a fully-owned arm of Toronto-based Fairfax Financial Holdings, has purchased around 77.1% stake in the company.

The market breadth, which indicates the overall health of the market, is weak. On the BSE, 1126 shares declined and 712 shares advanced. 109 shares remained unchanged.

In conclusion, we expect the markets to remain volatile for the day.