Markets soft in noon trades

The markets are trading in the red midway through the day's session due to the negative cues from the global front. The Sensex is quoting at 18534, lower by 74 points and the Nifty is at 5562, down 29 points.

The benchmark indices did have a red-carpet opening after the Dow plunged nearly 300 points overnight as economic reports painted a glum picture for jobs and manufacturing. While the Sensex has recouped more than 100 points from thereon, the intra-day recovery has still not been enough to pull the indices from the globally induced morass. And even the easing in food inflation from 8.55% to 8.06% has done nothing to lighten the gloomy atmosphere. The Hang Seng, Nikkei and Seoul are trading weaker by nearly 2% each, while the FTSE, CAC and DAX have shaved off around a percent each in early trades.

 

In line with the recent market behaviour on downtrend days, the rate-sensitive banking, realty and auto pack and the high-beta metal sector are being given a drubbing in today's session. ICICI Bank has weakened by 2.7% at Rs 1055, Tata Motors has shed 2.5% at Rs 1051 and M&M has lost 2.2% at Rs 660. The other key heavyweight losers are Hindalco, Sterlite, DLF and HDFC Bank.

On the other hand, Hindustan Unilever has strengthened by 3.3% at Rs 320, Bajaj Auto has gained 1.6% at Rs 1360 and ITC has added 1.3% at Rs 196.

The market breadth is weak. Out of 2766 stocks traded on the BSE,, there are 1030 advancing stocks as against 1620 declines.