Markets slip after a positive start

The markets have slipped after opening in the positive zone. Both the Sensex and the Nifty slipped below the key levels of 18,000 and 5,400, respectively. The Sensex is down around 72 points at 17,914 and the Nifty has shed 16 points at 5,381.

The Markets had opened in the green, with large caps mostly flat. The Sensex had touched a high of 18,065 in opening deals.

HDFC Securities in its pre-market outlook said, that the markets could have a flat to positive opening. “Later it could inch up further. Support on Nifty is at 5,350 while resistance is at 5,450. Among the indices, Auto and Banking stocks could outperform while Metal stocks look weak,” says the report.

RIL continues to trade below Rs 890, down 1% today. The stock had hit a 23-month low (of Rs 884.10) yesterday as FIIs have been selling the stock after CAG report. Along with RIL, Infosys (down 1%) and HDFC (down almost 2%) has pulled the Sensex by almost 18 points each.

NTPC is down almost a per cent after the Coal Ministry cancelled three coal acreages on the ground that the company isn’t serious about developing them. ONGC, Grasim , Sun Pharma, PNB, HCL Tech are other notable losers, down nearly 1% each on NSE.

Other stocks in news are Tata Steel and Maruti, up almost 3% and down marginally, respectively. Tata Steel exited Riversdale by selling its 26% stake for $1.11 billion. And striking workers at Maruti’s Manesar plant, called off strike.

Bank stocks like Axis Bank, Kotak Mahindra Bank opened in the green. Many now have slipped. Yes Bank is the biggest loser, down 2.5%, followed by Union Bank of India and Kotak Mahindra Bank, each down 0.5%.

Most sectoral indices have slipped in the red, barring consumer durables, FMCG and metal (all up 0.5% each). Oil & Gas index is the biggest loser, down nearly 1%, dragged by ONGC. However, oil marketing companies are positive, up almost 0.5% each.

IT, capital goods, PSU and auto are sectoral losers, down 0.5-1% each. Infosys, HCL Tech, TCS are down over 1% each, in the IT space. In the capital goods space, Thermax, Areva T&D, Alstom Projects are down close to 1% each. However, Gammon India and Havells India are bucking the trend, each up over 1%. M&M, down almost 1%, is dragging the auto stocks, along with Exide, which is down over 1%. After the RBI policy yesterday, the auto players are concerned about the sip in sales.

Broader markets are mixed with the CNX Midcap Index down 23 points and BSE Small Cap up 10 points.

Market breadth is positive with 1,153 stocks advancing and 918 declining.

Others like Piramal Health is up marginally after news of the company looking for expanding through buyouts. SAIL is in the green after signing an MoU with Midhani. IDFC, which had a rocky ride all of this week is down 0.75%. And NMDC is up marginally after finalising a Rs 3,000 crore pipeline project.