Markets Open Negative Due To Overall Weakness
DSIJ Intelligence / 24 Aug 2012
On the back of weak global cues, the Indian markets opened negative today. After the release of data by HSBC on the preliminary reading of the manufacturing and services PMI for the euro zone, markets worldwide saw a slump. This downfall was larger after a Federal Reserve official commented on the round of quantitative easing to not be likely any time soon. With this, the European markets saw a larger slump and the Asian markets opened in the red today. Indian markets too trimmed the rising spree seen during this week and the Nifty fell below 5400. Currently, the Sensex is trading lower by 88.32 points at 17761.9, lower by 0.49% and the Nifty is trading lower by 34.30 points at 5381.05, lower by 0.63%.
| Benchmark Indices | ||
|---|---|---|
| Index | Rate | % Change |
| Hang Seng | 19904 | -1.13 |
| Nikkei | 9064 | -1.25 |
| Shanghai | 2098 | -0.72 |
| SENSEX | 17761.9 | -0.49 |
| NIFTY | 5381.05 | -0.63 |
Losses on Asian markets have cut in to a larger extent than earlier in the morning. The Hang Seng, Nikkei and Shanghai Composite are trading lower by 1.13%, 1.25% and 0.72% respectively. The sole reason for this drop is, as mentioned earlier, a dip in the hope of QE. The sectors that have been the most due to this drop are commodity and technology. Given the scenario and sentiment worldwide, Europe too is expected to open negative.
On the domestic front, some stocks have seen drastic moves. Among these is Coal India which has gained 1.34% today after DNA reported that the company has decided to buy back its equity shares. HDFC too has gained 1.43% and Cipla has appreciated by 0.63%. Of the losers, Reliance Infra and Lanco Infra have lost considerably, lower by 2.44% and 3.74% respectively. Adani Ports is trading at a 52 week low of 106.60 which is 4.09% lower today.
Of the 13 sectoral indices, only Healthcare and FMCG are trading higher indicating a shift of investor buying to cyclic industries. All the other sectors are trading negative with the highest losses seen in Realty, Capital Goods and Consumer Durables which are lower by 1.40%, 0.93% and 0.74% respectively.
With this overall weakness seen in the markets and in global cues, we expect the markets to remain pressurised over the rest of the day.
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