Markets Trading Lower; Auto, CG Down

As expected in our morning market commentary, the Indian markets opened sideways taking cues from the other Asian markets. At present, both the indices are trading lower with marginal losses of 0.3%. Among the sectoral indices, Auto, Oil & Gas, Metals and IT are trading in the negative territory, while Consumer Durables is trading smartly up by over 1%. Other indices like Realty, Healthcare and Power are also trading higher in the green zone.

In the other Asian markets, Hang Seng is trading lower while Nikkei is trading higher in the green zone. The Shanghai market has been quite flat since its first trades. This is after the media reports that stated that the auto and precision-instrument sectors are showing some strength. The other Asian stock markets declined with banking major HSBC Holdings PLC falling in Hong Kong.

Back home, Tata Motors is the leading index loser, trading 2.28% down at Rs 220.75. Other Auto stocks have also slid, with M&M, Hero MotoCorp, Maruti Suzuki and Bajaj Auto all lower in the range of 0.3%-1.5%. Capital Goods heavyweights BHEL and L&T are also trading with losses of 1.64% and 0.72% respectively. Other stocks like Jindal Steel, Sun Pharma, ITC, TCS, etc. are trading with marginal losses.

On the other hand, Tata Power is the leading gainer up 1.77% to Rs 97.50. Other stocks like Coal India, Sterlite Industries, ONGC, Wipro, etc. are trading higher in the green zone. ICICI Bank and HUL are trading with marginal gains of 0.09%.

Reliance Mediaworks has zoomed higher by 7.72% to Rs 63.50 on news that the company has signed a term sheet with a leading international Private Equity fund. Kilpest India is trading with marginal losses, down 1.35% at Rs 11 after the announcement that the company has received an order worth Rs 6.71 million from Municipal Corporation of Delhi through HLL Lifecare for the supply of pesticides to be used in a mosquito control programme.

The market breadth, which indicates the overall health of the market, is weak. On the BSE, 1351 shares have declined, 884 shares have advanced and 97 shares are unchanged.