Markets open lower amid weak Asian cues

Markets have started the trading session on lower note tracking weak Asian cues as investors booked profit after sharp gains recently.

Markets have opened lower on Wednesday, amid weak Asian cues, as investors booked profit at higher levels after sharp gains recently. By 9:30, the Sensex was lower by 67 points at 20,235 mark and the Nifty declined by 35 points at 6,043 levels.

The market may remain volatile during the week as traders will roll over positions in the futures & options (F&) segment from the July 2013 series to August 2013 series tomorrow.

On the global front, most Asian stock markets edged up in a tentative morning session on Wednesday, while the dollar treaded water, as investors awaited the latest reading on China's manufacturing activity to gauge the health of the world's second-biggest economy.  

The HSBC China flash PMI is scheduled to be released at 0145 GMT. Signs that Asia's powerhouse economy is slowing would weigh on equities markets and commodities prices, and might give the US dollar some support.   In recent sessions, reports have suggested that China was moving to support its cooling economy.

MSCI's broadest index of Asia-Pacific shares outside Japan added 0.3%.   Japan's Nikkei share average edged down 0.4% after a two-day rally.

Back home, BSE Bankex has plunged by almost 3% followed by counters like Realty, Auto, Capital Goods, PSU, Consumer Durables, Metal and Metal, all declining between 0.1-1%.

The main losers on the Sensex at this hour ICICI Bank, HDFC Bank, SBI, HDFC, Sterlite, Tata Motors, Hero Moto and Tata Steel, all dropping between 1-3%.

Banking and financial shares have declined significantly. Exactly a week after tightening liquidity to stabilise the volatility of the rupee, the Reserve Bank of India (RBI) on Tuesday imposed new restrictions on commercial banks’ access to cash.

On the gaining side, ONGC, Dr Reddy’s, Wipro, ITC and TCS have gained by 1% each.

The market breadth in BSE remains weak with 518 shares declining and 336 shares declining.