Markets recover from low levels

Markets recovered a wee bit in the noon deals. Although the Sensex continued to trade below 16,000 levels, at 15,957, lower by 204 points and the Nifty was trading below its 200 WMA of 4,816 at 4,806, down 60 points.

Earlier in the day Sensex registered the low of 15,801.

"Today's selling is due to global turmoil backed with couple of negative domestic news flow. A close below 4800 can take us to 4600-4650 for the September Expiry," said Nandish Patel, Derivative Analyst, Sharekhan.

Meanwhile, the European markets have also opened lower adding to the worries in the Indian markets. CAC 40 index opened at 2,766, down 1.5%, FTSE opened at 4,999, down 1.3% and the DAX opened at 5,129, weaker by 66 points.

Back home, all the Sensex stocks were trading in the negative territory barring Wipro. Coal India was the top losers among the Sensex stocks, down nearly 6% to Rs 345, Hindalco lost 5.2% to Rs 127 and Sterlite Industries was also weaker by 5% to Rs 116. HDFC Bank, Jindal Steel, Bajaj Auto, ITC, L&T, J P Associates, Hero MotoCorp, Reliance Industries, Tata Motors and Tata Steel were also trading lower by 2%-3% each in trades thus far.

The sectoral picture was also looking extremely weak as all the sectoral indices were trading lower by 1-5% each. BSE Consumer Durables index was the top loser, down 5.2% or 350 points to 6,298. Metal stocks also reeled under the selling pressure. The BSE Metal index lost 10% in the past four trading sessions. Today the index lost 3.7% or 430 points to 11,083.

PSU, Capital Goods, Realty, FMCG, Oil & Gas, Auto and Bankex indices shed 1.6-2.3% each.

Titan Industries led the losers chart among the consumer durable stocks. The stock witnessed its sharpest fall in two years, down over 7% to Rs 206. Rajesh Exports was trading at Rs 114, down 6%. TTK Prestige, VIP Industries, Whirlpool, C Mahendra Exports and Bajaj Electricals were also among the losers.

Among the metal stocks, Hindustan Zinc, Sesa Goa, JSW Steel, NMDC, Bhushan Steel, NALCO, SAIL and Jindal Steel were among the top losers.

The broader markets were also trading lower by 2% each. The BSE mid-cap index was at 6,093, down 129 points and the small-cap index lost 147 points to 6,894.

The overall breadth was extremely poor as 2,068 stocks were declining while 506 stocks were advancing.