Markets open soft on global cues

Markets have opened in the red this morning following mixed cues from global peers. The Sensex having recovered from the opening lows is down 20 points at 17,445. Nifty is down six points at 5,253. Markets would be watching out for weekly inflation and services PMI data which are due for release today.

"The trend deciding level for the day is 17,473 / 5,255 levels. If Nifty trades above this level during the first half-an-hour of trade then we may witness a further rally up to 17,608 – 17,751 / 5,304 – 5,350 levels. However, if Nifty trades below 17,473 / 5,255 levels for the first half-an-hour of trade then it may correct up to 17,330– 17,195 / 5,209 – 5,159 levels," Angel Broking said in a research note today. Wall Street rebounded from two days of sharp losses on Wednesday after the Federal Reserve said it is prepared to do more for the economy if conditions warrant. Th Dow added 1.5% to 11,836. S&P 500 was up 1.6% at 1,238.

Meanwhile in Asia, shares plummeted as fears that Europe's debt crisis could unleash financial chaos prompted investors to continue shedding riskier assets in favour of the relative safety of the dollar. The Hang Seng dropped 2.5% to 19,231. Nikkei slipped 2.2% to 8,640.

Most of the sectoral indices are trading on a flat note this morning. BSE FMCG index has dropped 0.5% at 4,160. OIl & gas, metal and bankex have slipped marginally in trades. Meanwhile, BSE power and consumer durables indices have moved up 0.4% each in trades.

Hindustan Unilever has dropped 1.3% to Rs 385. ITC is down marginally at Rs 209. HDFC Bank, HDFC, JInsal Steel, Sterlite and ONGC are down around 1% each.

On the other hand, Tata Power has gained 1.5% at Rs 104. BHEL, SBI and Bharti Airtel have advanced 1% each.

SAIL ahead of its quarterly results have dropped 1% to Rs 111. Ashok Leyland is up 1.3% at Rs 27.20 before it comes out with its numbers later today. Meanwhile, SKS Microfinance has added 2% to Rs 205. SKS Microfinance plans to raise 900 crore via share sale.  Arvind Ltd has divested its entire 40 per cent stake in its joint venture with V-F Mauritius for 257 crore. The stock is up 0.7% at Rs 107.

BSE market breadth is positive. Out of 1,052 stocks traded so far, 689 shares have advanced while 331 shares have delcined.