Markets open in red, Sensex sheds 200 pts

Markts have opened down this morning, extending last week's fall. The Sensex has dropped 195 points to 15,295. Nifty is also down 1% or 60 points to 4,589.

A rally in US stocks fizzled, leaving major indexes with modest gains on Friday, as Wall Street was torn between hope that US economic data signals better times ahead and fear Europe's debt crisis will engulf world economies. For the week, the Dow fell 2.7% and the S&P lost 2.9%.

Asian stocks fell this morning on fears possible credit ratings downgrades of several European countries could derail progress towards resolving the euro zone's debt crisis, while the euro steadied after its worst weekly performance in three months.

All th sectoral indices, barring consumer durables has dropped into the red. BSE Bankex is leading the losses - down 3% to 9,137. Realty, power and metal stocks are also in th red.

ICICI Bank has dropped 3.5% to Rs 653 while HDFC Bank has shed 3.3% to Rs 402. Bharti AIrtel has slumped 4% to Rs 323. SBI, HDFC, Larsen & Tobro and Sterlite are down 2-3% each. Among other losers are BHEL, Tata POwer and Jaiprkash Associates.

DLF has slipped 2% to Rs 191 on reports that the company plans to hire an investment banker and an international property consultant by mid-January to sell off its Bombay Mills parcel in the country’s western metropolis.

The Sahara group will give a loan of more than 250 crore to Kingfisher Airlines, to help the carrier continue operations, reports suggest. Kingfisher is flat at Rs 21.75.

Oil marketing companies are in limelight today on reports that they have decided not to change petrol prices this fortnight in view of correction in rupee-dollar value. HPCL is down 0.7% at Rs 262 while BPCL has amanged to claw back into the gren - up 0.5% at Rs 527.

BSE market breadth is extremely negative this morning with 1,023 shares declining for 342 shares on the advancing side. A total of 1,415 shares have been traded so far.