Markets trim losses

Tata Motors is the top Sensex gainer, up over 4%

Benchmark Indices have trimmed early losses on account of buying among auto stocks. However, markets remain in negative zone led by weakness among index heavyweight RIL, software, financial and capital goods shares.

By 10:30, the Sensex was down 61 points at 18,842 and the Nifty declined 24 points to 5,736.

On the global front, the Dow industrials lost more than 300 points in a sell-off on Wednesday that drove all major stock indexes down over 2% in the wake of the presidential election as investors' focus shifted to the looming "fiscal cliff" debate and Europe's economic troubles.

The Standard & Poor's 500 Index posted its biggest daily %age drop since June, with all 10 S&P sectors solidly lower and about 80% of stocks on both the New York Stock Exchange and the Nasdaq ending in negative territory.

Asian shares extended losses on Thursday as investors worried about the fiscal crisis in the United States and the European economy's further deterioration, underpinning the safe-haven dollar and yen as well as U.S. Treasuries on safety bids.

MSCI's broadest index of Asia-Pacific shares outside Japan slid 0.9%, retreating from a near eight-month high on Wednesday.

Japan's Nikkei average dropped 1.3% to a one-week low as the yen firmed, weighing on exporters.

Back home, the rupee lost a hefty 36 paise to Rs 54.56 against the US dollar in early trade at the Interbank Foreign Exchange market on strengthening of the American currency against the euro overseas.

On the sectpral front, BSE Power, IT, TECk and Capital Goods indices have slumped by almost 1% each. However, BSE Auto index has gained by nearly 1% each.

Index heavyweight Reliance Inds was down nearly 1%.

Software shares like Infosys, TCS and Wipro have declined by 1% each.

According to Ravi Nathani, Technical analyst, Nsetoday.com, “IT for short & medium term trend is down whereas it is expected to underperform the market. Large cap stocks from this space like INFY is would witness selling pressure on rise whereas support is expected around 2290, TCS is also a sell on rise whereas support is expected around 1260 - 1290 & WIPRO is also expected to underperform whereas support is around below 350”.

Other notable losers include Tata Power, ICICI Bank, GAIL, L&T, HDFC, BHEL, SBI and NTPC.

On the winning side, Tata Motors is trading higher over 4%, bouncing back over 4% from intra-day’s low on hopes of better second half (October-March) of the current fiscal on back of strong product plans.

“The company will launch six new models in the passenger car segment and 25 models in the commercial vehicle (CV) space in the second half in order to bring back momentum in its domestic sales, which have been hit by increasing competition and slow economic growth,” the repots suggests quoting Karl Slym, managing director, Tata Motors.

Among other shares, Emami Limited is trading higher by 4% at Rs 598 after reporting 17% year-on-year (yoy) jump in its consolidated net profit at Rs 59 crore for the quarter ended September 2012, on the back of robust sales of various brands, including Boroplus and Zandu.

The broader indices have outperformed the benchmarks. The market breadth remains marginally weak with 1,039 declining and 939 shares advancing.