Markets continue to trade soft

Markets continued to trade in the red  in mid-noon trades albeit firm cues from Asian markets. The Sensex was down 91 points at 19,500. Nifty was down 29 points at 5,856.

Sensex touched a high of 19,697 on sustained buying by foreign institutional investors (FIIs). FIIs bought shares worth Rs 11,245.7 crore since March 22.

However, higher crude oil pices took the Sensex to a low 19,463. The International Monetary Fund on Thursday warned that the global economy was entering a period of scarcer oil that could drive prices up rapidly. Higher crude would essentially mean worries of inflation. RBI may raise key rates again in its annual policy review scheduled for May.

"Nifty is not able to cross the 5900 mark convincingly. So fresh shorts are getting created above this level. Hence the selling pressure," said Shailesh Kadam, AVP, Institutional Derivatives from PINC Research.

Asian markets were in green today. Hang Seng jumoed 128 points at 24.409. Nikkei surged 2% to 9,768 to its highest since the eartquake which hit Japan on March 11.

Markets would be looking at fourth quarter corporate numbers for direction. Globally, some key data from US such as the retail sales number and consumer price index would be looked at.

Cement stocks declined as cement firms are seen reporting weak Q4 results due to lower realizations and higher cost of imported coal. Jaiprkash Associates tumbled 3% to Rs 96. ACC shed 0.7% at Rs 1,121. Binani Cement was flat at Rs 88. Ambuja Cement slipped 2% to Rs 148.

Realty stocks fell on profit taking. Reliance Infra shed 1.5% at Rs 682. DLF dropped 1% t Rs 267.

Metal stocks were mixed as Hindalco and Jindal Steel declined while Sterlite jumped 1.3%.

Bharti Airtel gained 2% at Rs 364. Larsen % Toubro was up 1% at Rs 1,684. FMCG stocks -ITC and Hindustan Unilever - also moved up 0.6% each.

BSE market breadth was negative. Out of 2,889 stocks traded, 1,691 declined while 1,111 advanced in trades.