Markets open gap down, global cues weigh

All the sectoral indices open in the red

Markets have plunged in the opening deals in trades today on the back of negative global cues. The Sensex has slipped 225 points to 16,102 and the S&P CNX Nifty has opened at 4,874, down 68 points.

The rupee hit a new five-month low on Wednesday, falling below the previous session low of 54.15 to the dollar and fast approaching a record low of 54.30 hit in December as global risk aversion intensified.

Overnight, the US markets fell for the third straight day after Greece failed to form a government, setting the stage for a June election that could raise the risk of Athens abandoning the euro and deepening the euro zone's debt crisis. The Dow Jones industrial average dropped 63 points, or 0.50 percent, to close at 12,632, S&P 500 Index lost 8 points to 1,330 and Nasdaq Composite Index fell 9 points to close at 2,894.

The Asian markets are also trading lower. The Hang Seng has shed 537 points or nearly 3% to 19,537. Nikkei is down 80 points at 8,820 and the Shanghai is down 11 points at 2,364.

Back home, Tata Motors is the top loser among the Sensex stocks, down 5% at Rs 276. Sterlite Industries, DLF, ICICI Bank,BHEL, Tata Steel, HDFC Bank, Hindalco, Larsen & Toubro, HDFC and Hero MotoCorp are also among the top losers. On the other hand, Coal India, TCS, Cipla and Sun Pharma are among the notable gainers.

Selling pressure is visible across the board. Auto, realty and banking stocks are amongst the worst hit in the opening deals. The BSE Auto index has opened lower by 2.5% or 240 points at 9,502 levels. Realty and bankex indices are also down 1.7 and 2% each respectively. Capital goods, metal, power, consumer durables, IT, FMCG, PSU, oil & gas indices are also down 0.3-1.5% each.

The broader markets have also opened lower. The BSE mid-cap index is down 49 points at 5,876 and the small-cap index is down 51 points at 6,.284 levels.

The overall breadth is extremely negative as 863 stocks are declining while 311 stocks are advancing.