A modest cut in early trades

The global cues have had a pronounced effect on then domestic bourses this morning. The Sensex is quoting at 17914, lower by 59 points and the Nifty is at 5356, down 18 points. 

The Sensex had breached the 18k mark for the first time in 2 years, in the previous session, although it failed to sustain above the level on a closing basis. And the weakness on the Asian front have connived to drag the markets further away from the 18000 level.

The US markets had slipped overnight, with the Dow closing weaker by 72 points, Nasdaq shedding five points and S&P losing six points. And the Asian markets were mixed, albeit with a weak bias, in early trades. Nikkei had shaved off 88 points and Straits Times was poorer by 22 points.

Sterlite has weakened by 0.8% at Rs 863 on the BSE. Tata Motors has shed 0.7% at Rs 787 and Jaiprakash Associates has lost 0.7% at Rs 149. ITC, Hindalco and BHEL are the other significant losers. And index heavyweight, RIL is trading flat, with a negative bias, at Rs 1127.

On the gainer's side, M&M has strengthened by 2% at Rs 540 as the auto major has reportedly increased the prices of its utility vehicles. ACC has added 1.1% at Rs 985 and Sun Pharma is up 0.9% at Rs 1814.

The market breadth is strong though. Out of 1782 stocks traded on the BSE, there are 1148 advancing stocks as against 587 declines.