Markets continue to trade lower on weak Asian cues

HDFC Group, ITC, RIL among top Sensex losers

Benchmark share indices continue to trade lower in late morning deals, amid weak Asian cues, with HDFC Group shares leading the decline.

At 11:39AM, the 30-share Sensex index was down 90 points at 19,363 while 50-share Nifty index slipped 36 points to 5,881.

Asian markets headed for a weak closing on Friday on concerns that the 'fiscal cliff' in the US has received a setback from Republican lawmakers after they cancelled a vote extending tax cuts to incomes below $1 million.

Among the major share indices in the region, Hang Seng and the Nikkei were down nearly 0.9% each while Shanghai COmposite and Straits Times were both down 0.4% each.

Among the sectoral indices except for IT all other indices were in the red with Realty Index being the top loser down 1.2% followed by Auto, Oil&Gas, POwer, Healthcare and Bankex among others.

In the Sensex pack, mortgage lender HDFC and HDFC Bank were among the top losers down 1% each on profit taking after recent gains.

Among the index heavyweights, Reliance Industries and ITC were both down 0.7% each.

Auto shares which had recently gained in the previous sessions also witnessed profit taking at higher levels. Tata Motors, Mahindra and Mahindra, Bajaj Auto, Hero MotoCorp and Maruti Suzuki were down 0.2-1% each.

Among other shares, IFCI is trading lower by 2% at Rs 35.40 after its board has allotted over 500 million equity shares of the company on conversion of Optionally Convertible Debentures (OCDs).

Gulf Oil Corporation (GOCL) has moved higher by 5% to Rs 83.90 after the company said that it has completed acquisition of Houghton International Inc. for $1.045 billion. “Through a step down subsidiary structure in the United Kingdom and USA, the company has completed acquisition of 100% stake in Houghton International Inc. for $1.045 billion after satisfactory conclusion of regulatory approvals,” GOCL said in a statement.

In the broader market on the Bombay Stock Exchange, the BSE mid-cap and small-cap declined 0.4% each. Jet Airways, Strides Arcolab, Gateway Distriparks were the top losers in the Mid-cap Index while Kolte-Patil, Gujarat Apollo and Kemrock Industries were the top losers among small caps.

The overall breadth remains negative as 1,487 stocks declined while 966 stocks advanced on the BSE.