Markets Open Negative On Weak Global Cues, Profit Booking

As expected in our morning update, the Indian markets opened negative today on the back of some profit booking and due to weak global cues, especially from the Asian and US markets. The Sensex and Nifty are up by 0.47% and 0.43% respectively.

Of the BSE sectoral indices, Consumer Durables, Capital Goods and Bankex are in leading gains of 0.50%, 0.25% and 0.16% respectively. Of the major losers, FMCG, Auto and Oil & Gas are down by 0.58%, 0.48% and 0.46% respectively.

The Asian markets have also opened on a negative note on the back of concerns over growth across the globe. With more revenue warnings from the US companies including engine maker Cummins Inc., the scenario has begun to weigh down investors’ sentiments. The major indices, Hang Seng, Nikkei and Shanghai, are trading lower by 0.39%, 0.45% and 0.22% respectively.

Back home, from the Sensex shares, there are few gainers such as HDFC, HDFC Bank, Hero MotoCorp and Tata Steel are up by nearly 0.6% each. Among the major losers, Bharti Airtel, Wipro and ONCG are down by 1.26%, 1.11% and 1.04% respectively.

In individual stocks, Mahindra & Mahindra fell by 0.25% to Rs 732 after the company said it has suspended its plans to develop a vehicle for the US market due to changes in the US regulatory and market situation. MCX shot up 4.5% as it has received approval from SEBI to start an equity trading platform. Jaypee Infra was up by 5% as the company’s Yamuna Expressway is set to open on Jul 17.

The market breadth, which indicates the overall health of the market, is positive as of now. On the BSE, 1053 shares have risen and 699 shares have declined. 84 shares are unchanged.

In conclusion, we expect the markets to remain volatile and negative.