Markets opened lower following weak cues from Asia as uncertainty over consensus on US debt ceiling loomed. The Nifty slipped 17 points, at 5,550 and the Sensex declined 29 points, 18.469.
US markets clocked losses on Wednesday on renewed worries over ballooning US and Europe debt. The S&P 500 Index and the Nasdaq Composite Index fell 0.7% and 0.4% each. Markets across Asia were lacklustre on Thursday morning after China's HSBC's preliminary Purchasing Managers index, an indicator of manufacturing activity fell to a 28 month low of 48.9 in July. China's Shanghai Composite declined 0.6% and Hong Kong's Hang Seng was off 0.5%. Japan’s Nikkei Stock Average declined 0.1%.
Back in India Hero Honda was down 0.4%, Sesa Goa declined 1.1%, Hindustan Zinc gained 0.5% ahead of the first quarter results.
Biocon declined 6% after first quarter results, consolidated net profit was reported at Rs 70 crore and net sales were reported at Rs 442 crore.
Markets will take cues from Reserve Bank of India policy next week; economists expect 25 bps rate hike as Inflation accelerated to 9.4% in the month of June. Consecutive rate hikes have caused analysts’ to scale down India's growth expectation to sub 8% for FY12.
Among the sectoral pack BSE FMCG index was top gainer, up 0.2%. Marico was up 1%, United Breweries added 0.5% and Godrej Industries was up 0.4%.
BSE Realty index was the top loser, down 1%. Indiabulls Real Estate slipped 1.5%, Unitech was down 1.1% and Godrej Properties declined 0.7%.
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The smallcap and the midcap indices were trading flat.
Top gainers on the Sensex were Tata Motors, up 0.5%, Mahindra & Mahindra gained 0.4% and Hindustan Unilever was up 0.3%. Prominent losers were DLF, down 1.4%, Cipla declined 1.3% and Hindalco Industries slipped 1%.
Market breadth was negative 680 stocks advanced for 732 stocks which declined.