Markets Down 0.5%

The The Indian markets are witnessing negative trades this morning, with the Nifty and Sensex declining by 0.46% each from yesterday’s closing.

The Asian markets have also turned negative, with Nikkei declined by 1.7% on fears of poor corporate earnings in the September 2012 quarter. Yesterday, the Shanghai market was up on the hopes of another liquidity injection. The index at is just about in the green at this time, with 0.1% gains.

In the Indian markets, pharma and FMCG are the only indices trading in gains while all the rest are in the red. Realty is leading the losses, declining by 3%. Both Power and Bankex are also down over 1%.

Among the Sensex stocks, Cipla is up 0.9% and is the top gaining stock of the Sensex shares at this time. Tata Steel and Hero MotoCorp are up 0.5% each. ITC, RIL, Bajaj Auto and Tata Motors are the other shares in the green zone. The shares of BHEL have tanked over 1% on profit booking. Earlier today, BHEL has said that it should get Maharatna status. The company has also paid its highest dividends so far, which is 320% on the face value of Rs 2. IT stocks like Infosys, TCS and Wipro have turned volatile ahead of Infy's Q2 results due on Friday. The shares of Tata Power are also down 1.4%. L&T, SBI, M&M, ICICI Bank, HDFC, Dr. Reddy’s Labs, etc are also trading down this morning.

In other stocks, DLF has lost 3.6% over a demand of special investigation on the alleged links with Robert Vadra. Indiabulls Finance and GMR Infra have also tanked over 5% at this time as Arvind Kejriwal named them in his speech. The shares of Financial Technologies have soared by 2.7% as MCX prepares to start equity trading by Diwali this year.

Polaris has declined by over 5% as its CMD Arun Jain has been barred by the SEBI from the capital markets for two years.

The shares of IndusInd Bank and Cera Sanitaryware are also down over 1.5% as both of them are scheduled to announce their quarterly results later today.

Infosys and HDFC will announce their September quarter results this week. Besides, on Friday, the crucial IIP data is due, which is important as it will guide the RBI in taking a decision on interest rates. With the kickstarting of the earnings season, investors should pay attention to management interviews and growth projections, which will help them take informed decisions on stocks.

The market breadth is negative at the moment, with 55% stocks showing a decline. Ahead today, we expect the markets to remain volatile.