Markets remain weak dragged by auto shares

BSE Auto index has slumped by almost 2% followed by counters like Realty, Banks, Oil & Gas, Consumer Durable, Power and FMCG, all falling down between 0.2-1%. However, BSE Healthcare index has gained by nearly 1%.

Benchmark indices are trading lower weighed down by weak Asian markets along with selling among auto and banking shares.

By 11:00, Sensex plunged by 92 points at 18,612, and the Nifty down 23 points or 0.41% at 5,619 levels.

On the global front, Asian shares fell and the euro remained under pressure on Thursday as weak euro zone data, a sluggish debt auction in Italy and fears of a potential run on Cyprus' banks stoked investors' concerns about instability in Europe. Adding to the negative tone was the latest restrictive move by China, with its banking watchdog ordering banks to strengthen checks on the underlying assets of a range of wealth management products to ward off potential risks to the financial system.

Japan's Nikkei stock average tumbled 1.6%, as euro zone worries prompted profit taking in exporters and financials.

Back home, the rupee today lost 10 paise to Rs 54.46 against the US dollar in early trade on the Interbank Foreign Exchange due to appreciation of the American currency against the euro overseas.

On the sectoral front, BSE Auto index has slumped by almost 2% followed by counters like Realty, Banks, Oil & Gas, Consumer Durable, Power and FMCG, all falling down between 0.2-1%. However, BSE Healthcare index has gained by nearly 1%.

The main losers on the Sensex at this hour include Hero Moto, Bharti Airtel, Tata Motors, M&M, RIL, JSPL, HDFC and Tata Steel, all falling down between 1-3%.

On the gaining side, Hindalco, GAIL, ONGC, Sterlite and Cipla have gained between 1-2%.

Among other shares, Apollo Hospitals Enterprises has surged over 5% to Rs 836 on reports that the company is in advance stage to acquire a Chennai-based Lifeline Hospitals.

Novartis India has rallied 10% to Rs 639, bouncing back 13% from its intra-day low after the company said it received a letter from Swiss drug firm Novartis AG, also the promoter of the company about their intention to reduce its holding to meet minimum public shareholding norm.

Titan Industries has dipped almost 4% to Rs 242 in morning deals on back of heavy volumes on the Bombay Stock Exchange (BSE).

The market breadth in BSE remains negative with 1,088 shares declining and 882 shares advancing.