Markets continue to trade on a weak note in the morning deals. The Sensex has shed 100 points at 16,338 and the S&P CNX Nifty is down 31 points at 4,959 levels. Selling pressure is visible across the board. Auto and banking stocks are amongst the worst hit. The Auto index is down 3.2% or 297 points at 9,126. The bankex has also 116 points to 11,061 levels.
Tata Motors is the top loser from the auto pack. The stock has plunged 8.2% to Rs 253 after reporting a 30 basis points decline in EBIDTA (earnings before interest, taxes, depreciation, and amortization) margin for Q4FY12 to 14.3%. The market expected a jump of over 100 basis points. One basis point is one hundredth of a percentage.
Mahindra, & Mahindra, Bajaj Auto, Hero MotoCorp, Apollo Tyres and Exide Industries are also among the losers from this space.
From the banking space, Axis Bank, Indusind Bank, IDBI Bank, Bank of India, Canara Bank, Yes Bank, Union Bank and Punjab National Bank are the top losers.
Meanwhile, Shshank Mehta, Derivatives Strategist with Shah Investor's Home says the weakness is building-up in the markets.
"We acknowledge that the weakness is building-up in the markets, a close be 4920 will confirm the succeeding sell-off. We observe short positions building up in Open Interest of Nifty. Also, the concentration in Nifty Options for the next Series is seen forming a range of 4500-5000."
(Updated at 0930 hours)
Markets have opened lower in trades today after the Indian rupee, again opened on a weak note against the US dollar. The Asian markets are also trading on a weak note. The Sensex opened at 16,354, down 82 points and the 50-share Nifty opened weaker by 28 points at 4,962 levels.
The Indian rupee resumed the weakness against the US dollar in the opening deals. The rupee opened weaker by 0.5% at 56 against dollar.
Meanwhile, the Asian markets are also trading in the red, hurt by fears that Spain's banking woes will push up the country's borrowing costs to unsustainable levels although falls were limited on hopes that Greece would stay in the euro zone and for China stimulus steps. the Nikkei is down 85 points at 8,572, Hang seng slipped 377 points to 18,678 and the Taiwan has slipped 99 points at 7,242 levels.
Over night the US markets ended higher, The Dow Jones industrial average rose 125.86 points, or 1.01%, to 12,580.69. The S&P 500 Index added 14.60 points, or 1.11%, to 1,332.42. The Nasdaq Composite gained 33.46 points, or 1.18%, to 2,870.99.
Back home, the Nifty is likely to seek support around 4,975 – 4,965, while it can face resistance around 5,005 – 5,015 levels, analysts suggest.
Tata Motors is the top loser among the Sensex stocks, down 8% to Rs 254 despite the company reported robust Q4FY12 results after the market hours yesterday. The consolidated net profit rose to Rs 6,234 crore, from Rs 2,637 crore in the year-ago quarter.
BHEL, State Bank of India, ICICI Bank, Maruti Suzuki, DLF, Larsen & Toubro, Sterlite Industries, Mahindra & Mahindra, Tata Steel, Bajaj Auto, HDFC Bank, Hindalco and Reliance Industries have also opened on a weak note.
On the other hand, Sun Pharma, ONGC, Gail India, Infosys, ITC, Tata Power and HUL are among the notable gainers.
The selling pressure is visible across the board. The auto and banking sector stocks are amongst the worst hit. The BSE Auto index is the top sectoral loser, down 3.3% at 9,116. Bankex has slipped 1.3% to 11,032. Capital goods, realty, metal, power, PSU, oil & gas and healthcare indices are also among the losers.
The overall breadth is negative as 822 stocks are declining while 522 are advancing.