Markets open lower tracking weak Asian cues

Markets are started the trading session on a lower note tracking weak global cues. By 9:30, the Sensex was at 19,463 levels down 102 points whereas the Nifty declined by 33 points at 5,881 mark.

On the global front, investors growing wary of recent index highs and mixed signals from global equities overnight capped Asian share prices on Wednesday, while sterling remained vulnerable after weak UK data fed fears of a triple-dip recession. The Dow Jones Industrial Average marked another record high close on Tuesday, rising for an eighth straight day, while European shares retreated from modest gains at the end of the session, just shy of a fresh 4-1/2-year closing high.

The MSCI's broadest index of Asia-Pacific shares outside Japan was nearly flat, weighed down by a 0.3% drop in Australian shares. Australian shares hit a fresh 4-1/2-year high on Tuesday.

Seoul shares opened up 0.1%, after hitting a three-week low on Tuesday, as sentiment was dampened by worries about tensions with North Korea and the weaker Japanese yen.

Japan's Nikkei stock average opened down 0.5%, after snapping an 8-day winning streak which took the index up to a 4-1/2-year high on Tuesday.

Back home, BSE Consumer Durable index has surged over 1% followed by counters like Auto, IT, Banks, Metal, Realty and PSU, all gaining by nearly 1% each. Apart from FMCG, all the major BSE sectoral indices are trading in red zone.

Stocks sensitive to interest rates have extended yesterday’s loss after better-than-expected factory data and accelerating consumer inflation pared some of the rate cut hopes.

The main losers on the Sensex at this hour include Tata Motors, ICICI Bank, Jindal Steel, Hindalco, Infosys, Bharti Airtel, ONGC, M&M, HDFC Bank and Maruti Suzuki, all slumping between 1-2%.

Among other shares, Kennametal India is trading lower by 4% to Rs 550 after the company said that its US-based parent-promoter plans to cut stake in the company from the current 88.61% to comply with the SEBI norms on minimum public share holding requirements via offer-for-sale (OFS) route.

The broader markets are also trading lower with BSE Midcap and Smallcap indices down 0.3-0.4%. The market breadth in BSE remains negative with 696 shares declining and 485 shares advancing.