Markets Extend Losses On Weak Global Cues

After opening on a flat, negative note, the Indian markets have extended their morning losses amid weak global markets. In the morning, trades were weak due to the subdued Asian markets, and now, a weak opening in the European markets have also dented the sentiment. The Sensex and Nifty are trading lower by 0.45% and 0.43% respectively.

Among the sectoral indices, Consumer Durables, Healthcare and Oil & Gas are trading with losses of 1.92%, 1.18% and 0.89% respectively. Others like FMCG, PSU, Power, CG, Tech and Realty are also trading in negatives. Auto is the only index in the positive territory, trading higher by 0.78%.

The other Asian markets continue to trade lower. Hang Seng, Nikkei and Shanghai have lost 0.99%, 1.37% and 1.69% respectively. The markets in the region opened lower today after major companies there reported huge a decline for the Sept 2012 quarter, which dented investors' morale. The lower numbers were on the back of the weakening of the Chinese economy in the last few quarters.

European indices have opened their initial trades in the negative territory, with the FTSE, CAC and DAX lower in the range of 0.29%-0.55%. Bloomberg reported that the investors are worried about corporate profits after a string of disappointing results. The sentiment was also weighed down by a fresh batch of gloomy corporate outlooks, as the demand for goods ranging from cars to building materials is crippled by the Euro zone economic crisis. So far, 40% of the European companies have missed their Q3 profit expectations compared to around 30% in the US.

Back home, Pharma stocks are among the leading index losers stocks. Dr Reddy's Labs, Cipla and Sun Pharma are trading lower by 1.65%, 1.85% and 1.17% respectively. Others like Bharti Airtel, Coal India, HDFC, Hindalco,  ITC and Reliance are also in the negative zone.

In individual stocks, Firstsource Solutions fell by 10.53% to Rs 12.75 post the news that CESC's arm will buy a 34.5% stake in Firstsource Solutions and will make an open offer post the stake purchase.

India's largest aluminium company Nalco is down by 4.55% to Rs 47.25 after it reported lower-than-expected results for the Sept quarter.

Public sector lender Punjab National Bank plunged 5% after its net profit fell by 11.6% YoY to Rs 1065 crore in the Jul-Sept quarter of the current financial year (2012-13) due to higher non-performing assets.

The market breadth, which indicates the overall health of the market, is negative as of now. On the BSE, 1659 shares have declined, 950 have advanced and 122 shares are unchanged.