Markets opened lower on back of weak cues from the global markets. The Sensex fell 134 points, at 18,845 and the Nifty dropped 39 points, 5652.
Technical analysts said markets will continue to remain volatile until Nifty holds above 5710, which is also the trend dictating level. Puneet Kinra – Senior Technical Analyst (Equity Research), Bonanza Portfolio said, Nifty showed good strength in the initial session, however could not cross above resistance of 5750 level. Volatility is likely to continue till Nifty sustains well above 5850 level and upcoming quarterly results will weigh. Kinra added, for daily purpose, trend deciding level is 5710. If Nifty shows strength above 5710 level, then rally to 5750 na d5800 levels may be seen."
Across Asia, markets retreated from two month highs led by losses in banks after dissapointing earnings on Wall Street. Goldman Sachs, one of largest banks narrowly beat street estimates.
China's fourth quarter GDP expanded faster-than-expected at 9.8% from 9.6% a year earlier and consumer prices rose 4.6% versus 4.7% estimated. Raft of data from China failed to lift the indices as investors gauged the impact of recent round of tightening by the government and if it was enough to tame inflation.
Hong Kong's Heng Seng index was down 311 points, at 24,108 dragged by losses in financials and property developers. China's Shanghai Composite was up 36 points, at 2,721. Japan's Nikkei Stock Average was off 130 points, at 10,428, financials weighed.
Among individual shares, Biocon climbed 1.3% ahead of quarterly results, Kotak Mahindra Bank was up 0.6% and Yes Bank advanced 1% as will report quarterly results today. Hindustan Zinc dropped 1.4% after it reported third quarter results, net profit surged 12% at Rs 1,289 cr. Berger paints gained 1.8% on reports that it plans 300 exclusive retail outlets.
All the sectoral indices were trading in the red. Metal shares lost sheen, the index was down 1.1%. Sterlite Industries fell 2.03%, followed by Steel Authority of India, down 1.7% and Sesa Goa dipped 1.5%.
BSE oil & gas index was also one of the top sectoral losers, down 0.9%. Gail India dipped 2.2%, Indian Oil Corporation declined 1.2% and Petronet LNG was off 1.1%.
On the Sensex, Tata Motors was the top loser, down 2.2%, Reliance Communication slipped 1.3% and Bharti Airtel edged lower by 1.3%. Only 9 components on the Sensex were trading in the green, Larsen & Tourbo and Bajaj Auto advanced 0.9% and Hero Honda was up 0.7%.
From the broader markets, midcap and smallcap indices were down 0.1% and 0.2% each.