Markets trade on a subdued note

Realty, banking and metal stocks amongst the worst hit

Markets are trading on a subdued note in the noon deals. The Sensex is down 59 points at 16,487 and the S&P CNX Nifty is down 23 points at 4,977.

According to Somil Mehta, Sr Technical Analyst (Equity), Sharekhan, "Medium term and short term bias for the markets remain negative. Key support would be around 4,950 and 4,770 and Key resistance would be around 5,125 and 5,280 levels."

Meanwhile, the Asian marketss were also trading on a lacklustre note. The Hang Seng is down 153 points at 20,332, Shanghai has shed 38 points to 241 and the Nikei was down 136 points at 9,045 levels.

Back home,DLF is the top loser, down 2.7% at Rs 185. Index heavyweight Reliance Industries is also trading lower by 1.3% at Rs 699 near its 4-month low price after the company in its annual report said that it has cut estimates for proven gas reserves in its Krishna-Godavari (KG) block off the east coast by 6.7%, to 3.67 trillion cubic ft (tcf). NTPC, Sterlite Industries, Bharti Airtel, Mahindra & Mahindra, Coal India, State Bank of India, Cipla, ICICI Bank and Jindal Steel are also among the prominent losers.
 
On the other hand, ITC is the top gainer among the Sensex stocks, up 4.5% to Rs 238. TCS, BHEL, Larsen & Toubro, Hindalco, Wipro, HUL, Sun Pharma and HDFC Bank are also among the gainers, up 0.2-2.6% each.

Realty, banking and metal stocks are facing the heat of the selling pressure. The BSE Realty index is the top sectoral loser, down nearly 2% at 1,588 levels. The bankex and metal indices are also quoting lower by 1% each in the noon deals. Oil & gas, PSU, power, auto and consumer durable stocks are also facing the selling pressure.

At the same time, FMCG stocks are witnessing buying in trades so far. The BSE FMCG index is the top sectoral gainer, up 2.3% or 104 points at 4,669 levels. Capital goods, IT and teck stocks are also witnessing some bit of buying.

Among the individual stocks, Punjab National Bank has slipped 3% to Rs 759, falling 5% from day’s high, after reporting a single digit 9% year-on-year (y-o-y) growth in net interest income (NII) at Rs 3,310 crore for the quarter ended March 2012. Analyst expected NII of about Rs 3,510 crore from the second largest state-run lender.

The broader markets are also trading on a subdued note. The BSE mid-cap index is down 29 points at 6,024 and the small-cap index is down 33 points at 6,517 levels.

The overall breadth is negative as 1,472 stocks are declining while 967 are advancing.