Markets slump in opening trades

Markets have opened in the red following global cues. The Sensex has opened down 245 points at 16,243. The index is now down 300 points at 16,188. Nifty is down 89 points at 4,855.

Wall Street fell on Thursday after the European Central Bank dashed hopes that policy-makers were preparing a grand financial plan to contain the debt crisis, and Germany rejected some proposals to add power to the euro zone's bailout fund.

In Asia, The Nikkei dropped 1.4% to 8,541 after falling as far as 8,511, its lowest level since November 30. Hang Seng slumped 2% in trades. The broader Topix index shed one per cent to 738.00.

"The coming session is likely to witness a range of 4740 on declines and 5050 on advances," SMC Global wrote on a research report this morning.

As per provisional figures, foreign institutional investors (FIIs) bought shares worth a net Rs 25.72 crore on 8th December 2011.

Realty, metal and financial shares are among the key losers. BSE realty index dropped 2.3% to 1,561. The metal index slipped 2.2% to 10,267 - following he decline in the London Metal Exchange.

All 30 stocks in the Sensex are in red with Reliance, HDFC Banka nd ICICI Bank accounting for a 89 point fall in the Sensex. Jaiprakash Associates has dropped 3.3%, followed by BHEL, Sterlite, Bajaj AUto and Hindalco.

Reliance ADAG group stocks are in the red. Reliance Capital has managed to recover from its morning lows and is now trading flat at Rs 292. The company is in talks with at least three international firms to sell a 26 per cent stake in its general insurance arm.

Reliance Communications is down 0.3%, Reliance Infrastructure has slipped 1%, while Reliance Media Works trades down 1.3% this morning.

Kingfisher Airlines has crashed 5.2% to Rs 23.65 on reports that the service tax department has frozen its bank accounts for non-payment of dues. Jet AIrways has dropped 4.2% on fears that airline companies may have to shell out more money by way of service tax. Spice Jet is down 3.2% at Rs 20.80.

BSE market breadth is extremely negative this morning. Out of 1,348 stocks traded, 995 shares have declined while 328 shares have advanced so far.