Growing European Worries Hit Global Markets

The worries on the European front have increased dramatically, making stocks slump worldwide. The Indian markets are trading lower on the back of Euro zone concerns and a declining rupee.

What has now hit the market sentiment worldwide is the increasing concern that Greece may not be able to repay its debt. In this background, the Asian markets are trading lower than the levels they opened at. At the same time, non-impressive earning figures in the US for Q2 FY13 have resulted in even more declines. Apple posted below estimate results, and got slapped with a 5% drop in its share price. Moreover, there has been a dip in technology earning all over, including Toshiba, Samsung, Sony and Canon, among others. These figures reflect the demand slowdown from Europe, since these companies generate a chunk of revenue from sales in the region.

The increasing worries have seen the Hang Seng, Nikkei and Shanghai decline by 0.5%, 1.31% and 0.01% respectively. The Shanghai Composite index had picked up momentum in the middle of its trading, but is now losing the gains at a fast pace.

The Indian markets started off on a negative note today, and have gradually lowered as trading moves ahead. At the same time, the rupee continued its down-move, and has now reached a level of 56.35, which is significantly lower than the feared 56. This sprint in the decline in Indian markets has sent the Sensex below by 100 points.

The IT sector is trading significantly lower, with TCS, Infosys and Wipro trading lower by 0.55%, 0.80% and 2.77%. Wipro has been losing steadily because of the sluggish figures posted yesterday, coupled with the sub-par guidance. On the other hand, HCL Tech announced some impressive results, with a 47.8% rise in net profits, which has resulted in a 6.25% gain in the stock's price. HCL’s dollar revenue too went up by 3%, which is rather remarkable when compared to its peers and the 3 biggest listed IT companies.

The BSE FMCG index is down by 0.76% over the likelihood of the monsoon delay’s to affect consumption. Metals too have been trading drastically lower, with SAIL, Jindal Steel and Hindalco being the biggest losers on the index.

The markets are expected to see lower trades over the entire day today. They may see a further decline mid-session, with the European markets expected to open in the red yet another time.