Markets: Persisting weakness

All the indices seem to be falling in unison. The Sensex and Nifty have touched their lowest levels in three months, weakening by 1.7% each at 16174 and 4857 respectively. And the midcap and small cap indices have shed 1.6% each at 6579 and 8324 respectively.

The global cues are not encouraging either. The Nikkei and Taiwanese markets have extended their early-morning losses and are now down more than 3%, while the Hang Seng, Seoul and Straits Times have lost in the regin of 2% and 3% each. And pre-market trading in Dow futures suggests a soft opening on Wall Street.

Reliance Communications continues to be the major dragger this morning, having weakened by 6.1% at Rs 138. Grasim is at Rs 2281, down 4.6% and Reliance Infra is placed at Rs 1014, lower by 3.4%. Tata Power, M&M and L&T are the other major losers. And index heavyweight RIL is precariously perched above the 1000k mark at Rs 1002.  

Among the gainers pack, Cipla has strengthened by 0.4% at Rs 314 and Hero Honda is trading flat, with a positive bias, at Rs 1882.

The market breadth is negative. Out of 2600 stocks traded on the BSE, there are 532 advancing stocks as against 1962 declines.