Markets Down, SBI Under Pressure Ahead Of Results

As expected in our morning market update, the Indian markets opened on a flat, negative note on the back of negative cues coming in from the Asian markets. Yesterday, Moody’ revised India's GDP growth for FY12-13 downwards to 5.5%, blaming the government for the same. This, coupled with a weak set of June IIP numbers, led to the negative sentiment in the market.

At present, both the major indices are down by 0.15% each. Most of the sectoral indices are trading in a narrow range between 0.43%-0.77%. FMCG, Tech, Pharma, Oil & Gas, PSU and IT are trading up by nearly 0.30% each. Among the losers, Auto, Capital Goods and CD are lower by 0.77%, 0.70% and 0.48% respectively.

The other Asian markets continue to trade in losses. The major indices, Hang Seng, Nikkei and Shanghai, are down by 0.72%, 0.94% and 0.12% respectively. The markets are also taking cues from the global developments, especially from the negative closing in the US and European markets yesterday.

Back home, the stocks of FMCG companies are leading the chart. Godrej Consumer Products is leading with 2% gains at Rs 635. Among the Sensex stocks, Bharti Airtel is up by 1.87% at Rs 261.55 after witnessing losses for two consecutive days.

SBI is down by 0.50% ahead of its quarterly results announcement today. Moreover, as per the news, UBS has come up with a sell report on SBI, which will keep downward pressure on the scrip today.

Of the others, IL&FS rose by 2.15% to Rs 52.34 after the company announced that it has bagged two power projects worth Rs 142 crore. Bombay Dyeing is trading lower by 2.54% after the company lost its battle in Supreme Court with regard to the acquisition of mill land. GMR Infra is also down by almost 3% to Rs 21.65 after the company announced subdued results for the Jun 2012.

The market breadth, which indicates the overall health of the market, is negative at the moment. On the BSE, 848 shares have declined, 851 shares have advanced and 80 shares are unchanged.