Markets Trading Lower

As expected in our morning update, the Indian markets opened sideways today. The early trades were on the higher side with marginal gains, but the markets have now turned into the red zone. At present, both the indices are trading lower, with the Sensex and Nifty down by about 0.14% each. Of the sectoral indices, FMCG, Metals and IT are trading lower, while Oil & Gas, Healthcare and Power is up.

The peer Asian markets are also trading weak as of now. The three major indices, Hang Seng, Shanghai and Nikkei, are trading lower between 0.01%-1%. The EU summit this week as well as Citigroup's downward revision of the growth estimate for the Chinese economy are guiding the markets' moods.

Back home, the FMCG stocks are witnessing some profit booking after the leading business newspaper Economic Times reported today that the delayed monsoon and the slowdown in growth may impact the players in the sector. Stocks like HUL and ITC are trading lower by 1.53% and 0.7% respectively. The IT stocks are continuing the weak momentum seen yesterday, with Infosys trading 1.39% lower at Rs 2434. Other stocks like Tata Steel, Hero MotoCorp, Hindalco and ICICI Bank are also trading lower in the range of 0.23%-1.2%.

On the other hand, Tata Power is the leading index gainer, up 1.7% at Rs 95.50. Others like GAIL India, ONGC, HDFC Bank, Jindal Steel, etc. are trading higher in the range of 0.86%-1.66%. Coal India, RIL and SBI are among those trading marginally in the green zone.

The market breadth, which indicates the overall health of the market, is strong at this hour. On the BSE, 1087 shares have advanced, 942 shares have declined and 112 shares are unchanged.

Expect the markets to continue with their volatility for today.