Markets Down On Weak Global Cues

As expected in our morning market commentary, the Indian markets opened sideways today though on a negative note, taking cues from the global markets. At present, the broader markets are trading lower, with the Sensex and Nifty down by 0.21% and 0.26% respectively. Among the sectoral indices, Auto, Bankex and Metals are trading negative, while Consumer Durables, Power, Teck and Realty are trading higher.

In the peer Asian markets, Hang Seng and Shanghai are down by 0.75% and 0.45% respectively, while Nikkei is trading up by 0.22%. The Japanese market mood is positive on the higher trades of some of the leading companies like Sony, Sharp, Toyota Motors and Mitsubishi Motors post their Jun quarter results declaration.

Back home, Coal India continues to extend its losses from yesterday. Today too, it is the leading index loser, down 1.29% at Rs 345. Hero MotoCorp is trading 0.94% lower at Rs 1953.05 after the company posted disappointed sales numbers for Jul 2012. According to media reports, the total sales went down by 9.3% month-on-month to 4.84 lakh units. The shares of Hero's major rival, Bajaj Auto, are also trading 0.92% down at Rs 1600 ahead of its July quarter sales unit numbers.

Banking heavyweights HDFC Bank and SBI are trading with losses of 0.68% and 0.53% respectively. Other stocks like BHEL, Hindalco, RIL, Dr Reddy’s Labs, etc. are also trading marginally in the red.

NTPC is the leading index gainer as of now, higher by 1.59% at Rs 159.85 following the company's Jun quarter results declaration yesterday. FMCG stocks like ITC and HUL are trading with marginal gains of 0.15% and 0.16% respectively. Maruti Suzuki, TCS, Bharti Airtel, etc. are also trading higher in the green zone.

The shares of M&M are trading lower by 0.54% at Rs 694.50 after the announcement that Mahindra and Telephonics Corporation have signed a final agreement to form a JV that will provide the Indian Ministry of Defence as well as the civil sector with radar and surveillance systems, identification friend or foe (IFF) devices and communication systems. 

Acrysil is trading higher by 10.40% at Rs 120 after company announced post market hours yesterday that its board of directors would discuss the bonus issue of equity shares on August 14, 2012.

The market breadth, which indicates the overall health of the market, is strong. On the BSE, 986 shares have advanced, 675 shares have declined and 86 shares are unchanged as of now.