Markets cautious ahead of April IIP data

Wipro, SBI and ITC among the top losers on the Sensex

Markets are trading on a cautious note ahead of the April IIP data which is to be announced later in the day today. The Sensex is down 37 points at 16,630 and the S&P CNX Nifty is down 14 points at 5,038 levels. As per the Reuters poll the India's April industrial output is seen up 1.7% on a y-o-y basis.
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(Updated at 09.16 AM)

Markets have opened lower in trades today tracking weak global cues and Indian rupee weakening against the US dollar, the ruppe opened at 55.77 against the US dollar. Meanwhile, the Sensex has opened at 16,619, down 48 points and the 50-share Nifty has shed 22 points to open at 5,032 levels.

Asian markets lost ground on Tuesday as a European bailout for Spain's debt-stricken banks failed to convince investors that the spread of the debt crisis in Europe will be halted. Hang Seng is down 157 points at 18,795, Nikkei opened weaker by 110 points at 8,514 and the Shnaghai Composite is also down 18 points at 2,287 levels.

Overnight, the US markets also edged lower tracking the events in the Eurozone. The Dow Jones industrial average fell 142 points to 12,412, S&P 500 Index dropped 17 points to 1,309 and The Nasdaq Composite 1.70% to end at 2,810.

Back home, on the macro economic front the IIP data for the month of April is due to be announced later in the day today.

State Bank of India is the top loser among the Sensex stocks, down 1.2% to Rs 2,139. BHEL, ICICI Bank, Dr Reddy's Lab, Wipro, NTPC, Jindal Steel, Tata Steel, Tata Motors, Larsen & Toubro, Bharti Airtel and Hindalco have also opened lower in traded today, down 0.6-1% each. On the other hand, Coal India, Bajaj Auto, HDFC Bank, ONGC, Tata Power, Infosys and HUL are among the notable gainers.

Selling pressure is visible across the board barring consumer durable stocks. Capital goods stocks are worst hit in the opening deals. The BSE capital goods index is down 0.6% or 53 points at 9,277. Power, metal, realty, FMCG, bankex and auto indices have also opened weaker by 0.2-0.5% each.

Broader markets have opened on a listless note. The BSE mid-cap index is down 8 points at 5,968 and the small-cap index is flat at 6,341 levels.

The overall breadth is negative as 488 stocks are declining while 374 are advancing.