Markets Holding Morning Losses, CD Lower Over 2%

The Indian markets are holding their morning losses and are trading in a narrow range. At present, both the indices are trading down by almost 0.50%, with the Sensex still trading below the psychological 16k mark. Among the sectoral indices, Consumer Durables is the leading the losses, trading lower by more than 2%. Others like Auto, Power, Realty, etc. are also in losses. Bankex is the only index trading higher in the green zone.

The rupee's fall is still not stemmed. The currency has depreciated further against the dollar. It is currently trading at 55.96, depreciating 1.02% against the USD and steadily inching towards the 56 mark.

The other Asian markets, viz. Hang Seng, Nikkei and Shanghai are also trading lower in the range of 0.40%-2%. The Japanese market is trading down by almost 2% after global ratings agency Fitch downgraded the nation's credit rating. Further disappointment was also seen from the nation’s trade data. Negative sentiments were spread among investors on expectations that the Euro crisis may get worse going ahead.

Back home, Bharti Airtel is the leading index loser, down 2.7% at Rs 286.65. Tata Power has continued its losses from yesterday, and is trading down 2.49% at Rs 88.20 after the company reported a bad set of Q4 numbers. The Auto stocks remained in the negative territory, with scrips like Maruti Suzuki, Tata Motors and Hero MotoCorp trading lower by over 1%. Other stocks like Cipla, HUL, L&T, RIL, etc. are trading marginally in the red zone.

On the other hand GAIL India witnessed heavy buying and is up 4.06% to Rs 326.70 on reports that India is to sign a much-awaited agreement to buy natural gas from Turkmenisatan. Banking stocks are seeing some buying after being beaten down in the past trading sessions, with those like SBI, ICICI Bank and HDFC Bank trading higher in the green zone. Other stocks like Hindalco, BHEL, TCS, etc. are also trading in the positive territory.

Aurobindo Pharma is up 0.64% to Rs 110.85 after news that it has received final approvals for Nevirapine tablets and oral suspension. Tech Mahindra is trading marginally in the red zone, 0.63% down to Rs 613.50 after the company inaugurated its sixth SEZ facility today.

The market breadth, which indicates the overall health of the market, is weak. On the BSE, 1505 shares declined, 960 shares gained and 111 shares remained unchanged.

We expect the markets to remain volatile, and advise readers to play with caution.