 "Markets open weak as banks and metal shares weigh")
Markets have opened on a very weask note this morning, taking cues from Asian bourses. The Sensex is down 185 points at 19,243. All eyes are on the RBI policy review which is set to be announced on Tuesday. Nifty meanwhile is down 50 points at 5,823.
On the global front, the Federal Open Market Committee (FOMC) holds a two-day meeting on the interest rates in the United States on 19 and 20 March 2013. Meanwhile on Friday, the broader market measure S&P 500 Index is just a couple points away from its all-time closing.
In Asia this morning, Exporters opened lower with the dollar and the euro falling against the yen, in line with growing uncertainty over the economic outlook in Europe and the U.S. The Nikkei is down 2% in morning deals at 12,297. Hang Seng has also slumped 2%, followed by Shanghai Composite and Taiwan Weighted.
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Meanwhile, Standard & Poor’s has indicated that it may upgrade India rating outlook to stable if the government continues to progress on the path of fiscal consolidation. In a data heavy week, dichotomy remains the central theme though on balance, a trend improvement in economic environment is becoming clear.
Broader markets have fallen in line with the benchmark index. BSE mid-cap index is down 0.7% at 6,386. Small-cap index, however, is down 0.4% at 6,154.
Metal realty and banking shares are weak this morning. BSE metal index has slumped 2% in opening trades to 9,072. PSU, realty and bankex are down around 1.5% each. Meanwhile, BSE FMCG index is trying to stay afloat in the positive zone and is up 0.3% at 5,869.
Hindustan Unilever is up 0.8% at Rs 462. Cipla and Sun Pharma from the healthcare space are up marginally in trades.
On the other hand, Coal India has dipped 4.7% at Rs 305. According to reports, the government is quickly pushing ahead a blockbuster share sale of Rs 20,000 crore by offloading 10% equity in Coal India to meet half of the disinvestment target of 2013-14 in one stroke.
Bharti Airtel is down 2.3% at Rs 304. The department of telecommunications (DoT) has asked Bharti Airtel to stop 3G services within three days in the seven circles it does not have the required licences.
Among other key losers are Sterlite, ICICI Bank, Tata Power and Tata Steel.
The Karnataka High Court has urged the UB Group comprising UB Holdings and Kingfisher Airlines to come up with a concrete plan on how it intends to pay dues worth around Rs 330 crore towards a clutch of aircraft lessors. Kingfisher may be in focus after this. Kingfisher AIrlines has dipped 0.5% at Rs 9.45.
Three power distributing companies (discoms), managed by Reliance Infra in the state, owe Rs 2,649.95 crore dues to the state owned bulk power trader Gridco towards power purchase and securitised loans, as per government data revealed in the state assembly. Reliance Infra has dipped 1% at Rs 415.
Hero MotoCorp, which is set to kickstart its international business by foraying into new geographies by the end of this financial year, will design and develop all future products taking into account requirements in global markets. In spite of this, the stock has given in to market pressure and is down 0.6% at Rs 1,672.
BSE market breadth is negative. Out of 1,349 stocks traded, 864 shares have declined and 435 shares have advanced this morning.