Markets open lower tracking weak Asian cues

BSE Bankex down by almost 1%

The markets have opened lower tracking weak Asian cues after gaining over 4% in the last four consecutive trading sessions. At 9:40, the Sensex was down 94 points at 16,555 and the Nifty lost 31 points at 5,019.

Meanwhile, the rupee opened weaker against the dollar on Friday, retreating from a 2-week high in the previous session, as investors dumped riskier assets on reduced hopes for more monetary stimulus by the Federal Reserve.

The partially convertible rupee was at 55.25/27 per dollar, weaker than its previous close of 54.94/95.

Overnight, US ended barely changed as optimism about China's interest-rate cut was offset by Federal Reserve Chairman Ben Bernanke's comments that dimmed hopes for more US stimulus.

Asian shares also edged lower on Friday with MSCI's broadest index of Asia-Pacific shares outside Japan slipping 0.2% and Japan's Nikkei average dipping 1.2%. Strait Times, Hang Seng, Taiwan and Kospi have dipped between 0.4-1%.

Back home, the Nifty may seek support around 5,030 – 5,015, while it can face resistance around 5,070 – 5,080 levels, analysts suggest.

On the sectoral front, BSE Consumer Durable, Auto, Capital Goods, Oil & Gas, Power, Realty, Metal, Bankex, PSU and Healthcare indices have fallen between 0.5-1.2%. Infact, all the sectoral indices are trading in negative zone.

From the Consumer Durable space, Rajesh Exports, Titan Inds and VIP Inds have slipped between 1-3%.

Auto stocks like Maruti Suzuki, Tata Motors, Bajaj Auto, M&M and Hero MotoCorp have declined between 1-2%.

Capital Goods majors L&T and BHEL have dipped by nearly 1% each.

Among Power segment, Tata Power is the top Sensex loser, down almost 2%. NTPC has declined by nearly 1%.

Other notable losers include Cipla, SBI, ONGC, RIL, DLF, Sterlite, ICICI Bank and Sun Pharma.

On the gaining side, HUL, GAIL, Tata Steel, HDFC Bank and Wipro have increased by nearly 1% each.

Meanwhile, BSE Midcap index has slipped by 0.4% whereas BSE Smallcap index is trading marginally lower.

Among individual shares, India Cements has dipped 5% to Rs 72.65 in morning trades on reports that the Central Bureau of Investigation (CBI) has summoned N Srinivasan, managing director of the company for questioning in connection with YSR Congress chief Jaganmohan Reddy's disproportionate assets case.

The market breadth in BSE remains weak with 694 shares declining and 431 shares advancing.