Trades Continue To Be Feeble

The Indian markets continued to trade in the negative territory amid weak global cues. At present, both the indices are trading lower, with the Sensex down by 69 points at 17399 and Nifty down by almost 43 points at 5275. The weak Asian markets and the lower opening of the European markets led the market sentiments. Among the sectoral indices, Power has been beaten down heavily down by 1.81%. Realty, Metals and Capital Goods are also trading in negatives. Only IT is trading higher.

The Asian markets continue to trade on a negative note on the back of news of the Chinese Premier Wen Jiabao's statement that real estate market curbs to discourage speculation would be a long-term policy, as also following the disappointing US data on Friday.

The European markets opened in the red zone and are trading on a flat note as of now. The markets have extended their last week's losses after the series of negative data emerging from the global markets. The rising bond yields and worries over the burgeoning debt burden have kept investors' nerves on the edge.

The market breadth, which indicates the overall health of the market, is negative. On the BSE, 1669 shares have declined, 966 have advanced and 98 shares remain unchanged.

We believe that the markets will continue to remain under pressure from the global markets and a dismal earnings season.