Markets open lower on weak global cues

IT shares in the green, Prominent auto and metal names slip in early trades

Markets have opened on a soft note this morning following cues from the global markets. The Sensex is down 31 points at 19547. Nifty is down 17 points at 5880.

Overnight in the US markets, the bourses ended higher albeit paring early gains as worries continued over the Fed uncertainty. Dow added 65 points to 14,975.  Nasdaq was up 31 points.

In Asia, meanwhile, the Nikkei has gained 1% at 14,000. Shanghai Composite and Hang Seng have given off early gains and are now trading down half a per cent each.

Markets had edged higher for the third in a row on Monday as firm European stocks boosted sentiment. According to provisional data, foreign institutional investors (FIIs) sold shares worth a net Rs 1.48 crore on Monday.

Auto shares are weak. Maruti has slipped 0.8% at Rs 1592 after the smart rally on Monday. Tata Motors is down 1.6% at Rs 285. The company reported 18.08% decline in total vehicle sales at 52,708 units in June 2013.

Global credit rating agency Moody’s Investors Service has downgraded the outlook on India’s largest private power producer Tata Power Company (TPC) to negative from stable. The stock is down 0.8% at Rs 88.

Heavyweights which helped yesterday have slipped this morning, inlcuidng Reliance and Larsen & Toubro. The shares are down around half a per cent each.

IT shares have recovered after yesterday's losses. Wipro and TCS are up 0.8% each. Among other gainers are Tata Steel and Bajaj Auto.

Oil marketing companies have reacted to the diesel price hike. BPCL, HPCL and IOC are up around half a per cent each.

The BSE market breadth is positive. Out of 699 shares traded so far, 280 shares have declined while 384 shares have advanced.