Markets extend losses; Sensex hovers at 28,300

Information Technology and FMCG stocks are under pressure in this morning's trades.

The benchmark indices have extended their losses for a fourth consecutive session on the back of weakness in the technology and FNCG  space.

At 10:30AM, the Sensex is at 28,284, lower by 157 points or 0.5% and the Nifty is at 8,563, down 42 points. The midcap and smalllcap indices have shed around 1% each at 10,656 and 11,505 respectively to register a higher decline than the Sensex in percentage terms.

The markets had run out of steam last week, with the Sensex dropping 437 points or 1.5% to end at 28,442 and Nifty shedding 174 points or 2% at 8,606 after investors trimmed positions in information technology shares amid weak revenue growth. This morning's proceedings have not shown a turnaround in the short-term sentiment, atleast thus far, as investors continue to be edgy about the underperforming IT sector. The unenthusing cues from the Asian Street is not helping matters either.

Meanwhile, foreign institutional investors were net sellers in equities to the tune of Rs 676 crore.

CRUDE OIL

Crude oil prices rose on Monday, extending last week's gains as a drop in the number of US rigs drilling for crude pointed to lower supply later in the year, while China's latest stimulus measure also underpinned the market. Brent crude was up 72 cents at $64.17 a barrel by 0324 GMT. It settled lower on Friday but finished the week 9.6 per cent higher, its biggest weekly gain in more than five years. US crude for May delivery was up 75 cents at $56.49 a barrel. The contract, which expires on Tuesday, also fell on Friday but registered a fifth straight weekly gain.

RUPEE

The rupee has slipped in early trade on Monday. It has opened lower by 18 paise at 62.54 per dollar versus 62.36 on Friday.

GLOBAL MARKETS

Asian stock markets are trading subdued on Monday, tracking losses on Wall Street over the weekend even as China's central bank, the People's Bank of China on Sunday announced the reduction of the reserve-requirment ratio by 1% effective from today, infusing liquidity in the system. China's benchmark Shanghai Composite was up 0.6% while Hong Kong's Hang Seng was trading flat. Meanwhile, investors continued to book profits in Japan with the Nikkei trading flat with negative bias while Straits Times was down 0.4%.

U.S. stocks sold off on Friday as a confluence of intensifying Greek default fears and new stock-market regulation from China put investors on edge. The Dow Jones industrial average dropped 1.5% to 17,826.30, the broader S&P 500 slipped 1.1% to close at 2,081.18 and the Nasdaq Composite ended down 1.5% at 4,931.81.


SECTORS AND STOCKS

The BSE IT index continues to be in the doldrums post the TCS numbers, shedding another 1.8% at 11,960. There is red across the board, with Mindtree losing 5.6% at Rs 1222, Infosys shedding 2.6% at Rs 2125 and TCS shedding 1.4% at Rs 2441.

The FMCG sector is also bruised this morning. Britannia, Marico and Colgate have weakened by more than 3% each, while Hindustan Unilever and ITC have lost upto a percent each.

The oil index is subdued, down less than half a percent, post the RIL numbers. RIL is down 1% at Rs 916. It may be recollected that the stock had rallied 16.5% from its 52-week low of Rs 796 touched on March 30, 2015 ahead of its numbers and this morning's sluggishness would suggest that the participants are taking some profits off the table. Among the others tocks in this space, Oil India has lost 1.6% at Rs 510 and Petronet has lost 1% at Rs 182.

On the other hand, Tata Steel has jumped 1.3% at Rs 350 to top the gainer's list on the BSE. Hindalco, NTPC and ICICI Bank have added around a per cent each.