Markets continue to trade in red

Auto, metals among the top losers

Markets continue to anguish in the red as heavyweights like Reliance Industries, L&T, ITC and HDFC Bank continue to reel under the selling pressure. The Sensex was down 80 points at 19,395 and the Nifty slipped 32 points at 5,897.

In the broader markets, the smallcap slipped in line with the Sensex, down 0.4% underperforming the midcap index down 0.2%.

The rupee dropped by 20 paise to 54.75 against the American currency in late morning trade today on fresh dollar demand from banks and importers despite persistent capital inflows in the equity market. The Indian rupee resumed lower at 54.67 per dollar as against the last closing level of 54.55 at the Interbank Foreign Exchange (Forex) Market.

 

In Asia, shares retreated from near 17-month highs on Thursday and commodities fell as negotiations to avert a US fiscal crunch turned to personal taunts, putting a timely solution at risk.

The yen remained under pressure, after rising slightly in a kneejerk reaction when the Bank of Japan eased monetary policy on cue, expanding its asset-buying and lending programme by 10 trillion yen under intensifying pressure from incoming premier Shinzo Abe to confront chronic deflation.

MSCI's broadest index of Asia-Pacific shares outside Japan eased 0.3% but held near its highest in nearly 17 months, tracking global stocks which retreated from 17-month peaks on Wednesday on US budget concerns.

Back home, among the sectoral indices, Health Care and FMCG were the only indices in the green in the noon trades, up 0.4% and 0.04% respectively. On the other hand, Metals, Capital Goods, Power, Auto, Bankex and Oil & Gas indies down 0.6-0.8% were the major draggers.

The major losers among the Sensex-30 were Mahindra & Mahindra, Sterlite, BHEL, Bajaj Auto and Tata Steel down 1% each.

Among the gainers were Cipla, HUL, Maruti Suzuki, TCS and Jindal Steel which added 0.3-1.5%.

In other stocks, Opto Circuits (India) surged 5% to Rs 111 after the board approved issue of warrants to promoter at Rs 145 per share.