Markets trade lower, Sensex down 170pts

Key share indices are trading lower tracking weakness in banking, capital goods and metal shares. The 30-share Sensex is down 169 points at 17,468 and the 50-share Nifty is down 50 points at 5,309.  

Most Asian stock markets are trading in the negative terrain with the Nikkei and Hang Seng indices having declined 1% each. The Shanghai COmposite index is trading marginally lower by 0.1%.

Analysts said that the Nifty is likely to seek support around 5,330 –  5,310, while it may face resistance around 5,390 – 5,405.

All the sectoral indices are trading in the red. BSE Bankex, Capital Goods, Realty and Metal indices have shed nearly 1-2% each.

Canara Bank, Union Bank of India, ICICI Bank and SBI, down 2-3% each, are the notable losers from among the financials.

From the Capital Goods space, Punj Lloyd, BHEL, L&T and Thermax, down 2-3% each, are the prominent losers.

On the Sensex, DLF is the top loser, down 2% at Rs 198.65. Other prominent losers are Jindal Steel, BHEL, SBI and Hero MotoCorp, down 2% each.

The gainers from the pack are Bharti Airtel, Tata Motors and Mahindra & Mahindra, up 1% each. Maruti Suzuki and Sun Pharma Industries are trading marginally higher.

Among individual stocks, Raymond Limited has rallied 11% at Rs 388 in opening trades on reports that the private equity (PE) arm of the world's biggest luxury products group, LVMH, is in talks with the company to invest about Rs 750 crore ($150 million) in Raymond Apparel. Raymond Apparel owns brands such as Park Avenue, Parx and Notting Hill, which are sold at its exclusive retail stores The Raymond Shop and multi-brand outlets across India and West Asia and it is fully owned by Raymond Ltd, the report suggests.

The overall market breadth is negative as 742 stocks have declined against 599 advancing ones, on the BSE.