Markets Hold Their Losses

The Indian markets continue to hold their losses and are still trading in the negative territory. At present, the Sensex and Nifty are trading down by 0.61% and 0.75% respectively. Most of the global markets are trading lower, following the developed markets (US and Europe) which moved lower overnight on worries over the "fiscal cliff". Among the sectoral indices, Capital Goods, Bankex and Power have lost over 1% each. Auto and FMCG are the only indices currently trading higher, up by 0.80% and 0.17% respectively.

The losses widened in the other Asian markets too, with major indices like Nikkei, Shanghai Composite and Hang Seng lower in the range of 1.5%-2%. With the US elections now over, the global political focus now turns to the leadership change in China. How things will play out in the days to come is far from certain. Media reports also reported that the US election stoked fears about the upcoming fiscal challenges for Washington and its potential fallout for the Asian economies.

Back home, GAIL India, Tata Power and L&T are among the worst performers among the index stocks, and have plunged in the range of 2%-3%. Other heavyweights like Infosys, RIL, ICICI Bank and HDFC are trading lower by more than 1% each. Stocks like NTPC, Maruti Suzuki, ITC, BHEL, etc. are marginally in the negative territory.

On the other hand, Tata Motors is leading the pack, trading higher by 4.46% at Rs 281.25. This was after media reports which said that the street particularly cheered the strong growth at the company's British Jaguar Land Rover unit, even as a slowdown in the standalone business dragged the overall earnings. Other stocks like Bharti Airtel, Wipro, Sun Pharma, TCS, Coal India and M&M are also in the positives.

The market breadth is weak as of now. On the BSE, 1474 shares have declined against 1045 shares which have advanced, and 142 remain unchanged.

We expect the markets to see negative trades for the day.