Markets open sharply lower amid weak global cues

Sensex, Nifty down over 1% each

Benchmark share indices have opened sharply lower on Thursday, amid weak global cues and sharp depreciation in the Indian rupee, as investors turned cautious ahead of the GDP for Jan-Mar quarter to be released later today.

At 9:30, the 30-share Sensex was down 157 points or 1% at 16,155 and the 50-share Nifty was down 47 points or 1% at 4,904.

The Indian rupee fell sharply to Rs 56.40 to the dollar in early trades.

US stocks tumbled on Wednesday as surging bond yields in Spain and Italy ratcheted up tensions in financial markets about Europe's ability to solve its growing debt crisis. The Dow Jones industrial average lost 1.3 per cent, while the S&P 500 Index dropped 1.4 per cent.

Asian shares, the euro and oil prices fell on Thursday. Japan's Nikkei average slid 2 per cent, while MSCI's broadest index of Asia-Pacific shares outside Japan looked set to revisit its 2012 low with a decline of 0.8 per cent.

Back home, the index may look to re-test the 5,020-odd level again. However, given the derivative expiry higher volatility may not be ruled out, analysts suggest.

All the sectoral indices are trading in red zone. BSE Consumer Durable index has plummeted by nearly 2% followed by counters like Banks, Auto, Oil & Gas, Realty, Capital Goods, PSU and Power, all dipping by nearly 1% each.

ICICI Bank is the top Sensex loser, down over 3%. HDFC, HDFC Bank and SBI have slipped between 1-2%.

From the Auto space, Tata Motors and Maruti Suzuki have slipped by nearly 3%.

Index heavyweight Reliance Inds is down by over 1.5%.

Among Realty, DLF Limited has dipped 3% to Rs 178 in opening trades after reporting a 39% year-on-year (y-o-y) drop in its consolidated net profit at Rs 212 crore for the quarter ended March 31, 2012 due to lower income and higher interest cost.

Other notable losers include Sterlite, Tata Power, Wipro, Tata Steel, Sun Pharma and BHEL. 

Meanwhile, Meanwhile, BSE Midcap index has plunged by 0.54% whereas BSE Smallcap index is marginally weak.

The market breadth in BSE ended unhealthy with 706 shares declining and 407 shares advancing.