Markets subdued, metal & capital goods stocks weigh

Markets continue to reel under the intense selling pressure in the noon deals. The Sensex is down 212 points at 17,274 and the Nifty is down 70 points at 5,252.

According to Hormuz Maloo, Technical Analyst with Geojit BNP Paribas Securities, "I expect the Nifty to move slightly downwards in the next few days. However, there is good support for the Nifty at around its 200 day moving average which is currently around 5,150 levels. So while we may move downwards, I do not expect the 200 day moving average to be broken.
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The Asian markets were also trading lower after US jobs growth was weaker than expected. Japan's Nikkei was down 1.5% or 142 points at 9,546, Shanghai was down nearly 1% at 2,290 levels and Taiwan was also down 105 points at 7,600 levels.

Hindalco is the top loser among the Sensex stocks, down 4% to Rs 128. BHEL, Jindal Steel, Sterlite Industries, Larsen & Toubro, Maruti Suzuki,m Tata Steel, Gail India, ICICI Bank, State Bank of Indis, HDFC, Hero MotoCorp and Mahindra & Mahindra are also among the laggards.

Index heavyweight Reliance Industries is also trading lower by over 1% at Rs 736. It has contributed 17 points fall in the BSE benchmark index after Kotak cut its price target for the stock, citing "conflicting" company signals on the use of cash, "confusing" news from exploration and production, and "continuing weakness" in chemicals and refining margins.

On the other hand, HUL, DLF, Cipla, Bajaj Auto, Bharti Airtel ad Tata Power are among the notable gainers.

Selling pressure is visible across the board. The metal and capital goods stocks are amongst the worst hit in trades so far. The BSE Metal index has shed 2.5% or 280 points at 11,075 levels. JSW Steel is the top loser from this space, down 4.2% to Rs 688. Jindal Steel, SAIL, Bhushan Steel, Sesa Goa, Sterlite Industries and Tata Steel are also among the top losers.

The BSE Capital Goods index has slipped 262 points to 10,097 levels. Punj Lloyd is the top loser from this space, down 4% to Rs 55. Alstom Projects, ABB, Siemens, Crompton Greaves, Praj Industries, Thermax and BEML are also among the prominent losers.

Power, Bankex, PSU, Oil & Gas, Auto, Consumer Durables, Teck, IT, FMCG and Realty indices are trading lower. While, FMCG stocks are witnessing some buying.

Among the individual stocks, Reliance MediaWorks is trading higher by 3% at Rs 84.70 in otherwise weak market on reports that that Big Cinemas, the exhibition arm of the Anil Ambani group company, is in talks for an alliance with Mexico- based Cinepolis.

The broader markets are also facing the heat of the selling pressure. The BSE mid-cap index has lost 1% or 66 points to 6,408 levels and the small-cap index is down 31 points at 6,814 levels.

The overall breadth is negative as 1,529 stocks are declining while 1,021 stocks are advancing.