Trades Continue To Show Negative Bias

As expected in our morning update, the Indian markets opened negative today. At present, both the Sensex and Nifty are trading with marginal losses of 0.13% and 0.22% respectively. Investors are cautious ahead of the announcement of the IIP and WPI numbers  in the coming days.

Of the sectors, the Pharma index is trading up by over 0.73%. CD, PSU, FMCG, Oil & Gas and Realty are also in the green zone. Metals, Auto and Bankex are among the major losers, down by 1.46%, 0.58% and 0.18% respectively. Others like Tech and IT are also witnessing negative trades.

The other Asian markets are also taking losses. Hang Seng, Nikkei and Shanghai are lower by 0.63%, 0.78% and 0.92% respectively. The Asian markets also are looking cautious ahead of the key event risks from the US and Europe later in the week.

Back home, Pharma stocks are among the leading gainers in today’s trades. Major companies like Cadila, GlaxoSmithkline, IPCA Labs and Sun Pharma are the leading gainers, up by nearly 1.5% each. Others in the group are also trading higher, with stocks like Apollo Hospitals, Biocon, Piramal Health and Wockhardt all seeing gains of nearly 0.9%.

As updated in our morning update “Stock in Action”, Opto Circuit is up by 4% at Rs 134.85 at the moment after the announcement that it has received approval from the Drug Controller General of India (DCGI) to sell and market the E-MAGIC Plus product in the country.

Sesa Goa and Sterlite Industries have both tanked by 5% to Rs 161.55 after the Goa government ordered a ban on the mining of iron ore in the region. The company’s exports from Goa account for almost 90% of the company's total revenues.

Deccan Chronicle Holdings rose 3% on media reports that venture capitalist Srini Raju is willing to invest in the company.

The market breadth, which indicates the overall health of the market, is positive at the moment. On the BSE, 1035 shares have advanced, 835 shares have declined and 96 shares are unchanged.