Markets In Red

The Indian markets opened their first trades lower resulting out of pessimism over the ‘fiscal cliff’ deal. They continue trading in the red with no major global or domestic cues to change the directional trend. The Sensex and Nifty are trading lower by 0.64% and 0.74% respectively.

Among sectoral indices, 11 of the 13 indices are trading lower. Auto, Oil and Gas and Realty are the worst performing at this hour of trade, down in the range of 0.70% and 0.93%. Other Indices like FMCG, Power and Consumer Durables are also trading in the negative territory. IT and Teck are the only Indices which are trading higher and are currently up by 0.42% and 0.14% respectively.

Benchmark Indices
Index	Rate	% change
Hang Seng	22494	-0.74
Nikkei	9966	-0.73
Shanghai	2157	-0.52
SENSEX	19329	-0.64
NIFTY	5873	-0.74

There is considerable weakness in other Asian markets as well, with major Indices like Hang Seng, Nikkei and Shanghai Composite trading lower in the range of 0.5% and 0.7%. According to a report by Bloomberg, Asia stock markets traded firmly lower on Friday, after early optimism for a resolution to the US ‘fiscal cliff’ received a dent from Republicans lawmakers canceling a vote on a back-up tax-cut plan.

Back home, the market breadth, which indicates the overall health of the market is weak. On the BSE, 1401 shares declined, 883 shares have advanced and 100 shares are unchanged.

Technology heavyweights TCS and Infosys are trading higher by 0.53% and 0.32% respectively. There is significant strength in IT stocks resulting out of depreciation in the rupee. The currency is trading lower by 0.53% at Rs 55.14 to the dollar. Among other gainers are HUL, Tata Steel, Cipla, Sterlite Industries and Hindalco Industries.

Among losers is Tata Motors, which is the worst performing stock for the day so far. It is trading at Rs 301 a piece, lower by 1.42%. Other stocks trading lower by more than 1% are ONGC, Bharti Airtel, Coal India and ITC. At the same time, trading marginally lower are Maruti Suzuki, ICICI bank Hero Motocorp, among others.

Over the rest of the day, we expect the markets to remain volatile with a negative bias due to unfavorable global cues. We advise our readers to play with caution.