Markets remain subdued, global cues weigh

The markets are trading on a subdued note in the noon deals on the back of weak global cues. The Sensex has shed 53 points at 17,120 levels and the Nifty is down 13 points at 5,209 levels.

According to Shshank Mehta, Derivatives Strategist, Shah Investor's Home, "The expectation of Nifty to drift lower are increasing but we would advise traders with a bearish view to be cautious as Nifty is trading near its psychological support level of 5,200 and above its 200 DMA of 5,189. We advise short traders to book profits. However, we also advise traders with a bullish bias to wait for today’s close. Do not initiate positions today as it is important for Nifty to close above the two suggested points."

Asian shares fell for a third day in a row on Wednesday as investors grew more risk averse, with renewed uncertainty over Greece's bailout and mounting worries about slowing global economies overshadowing support from ample liquidity. Japan's Nikkei slipped 62 points to 9,576 levels. Hang Seng was down 180 points at 20,626 levels. Taiwan and Shanghai were also trading marginally lower.

Back home, Jindal Steel is the top Sensex loser, down 3.2% to Rs 529. BHEL, Sterlite Industries, index heavyweight Reliance Industries, Maruti Suzuki, SBI, ONGC, NTPC, Bharti Airtel, Mahindra & Mahindra, TCS and HDFC Bank are also trading lower by 0.6-1.6% each.

On the other hand, Hero MotoCorp is trading higher by 1.2% at Rs 1,888 on reports that India's largest two-wheeler maker by sales is working towards expanding its global presence. Wipro, Bajaj Auto, DLF, Hindustan Unilever, Sun Pharma and Tata Motors were among the notable gainers.

Oil & gas, metal and power stocks are among the worst hit in trades so far. The BSE Oil & Gas index is down 1.2% or 101 points at 8,235 levels. Metal and Power indices have also shed over 1% each. PSU, capital goods and banking
stocks are also facing a mild selling pressure.

While, IT, Realty, Healthcare, Auto, FMCG and Consumer Durable indices are trading marginally higher.

From the oil & gas space, HPCL, BPCL, Indian Oil, Gail India and Gujarat State Petronet are among the top losers.

Among the individuial stocks, Hexaware Technologies has rallied 3% at Rs 110 on reports that the Larsen and Tourbro’s (L&T) information technology arm, L&T Infotech, is exploring options of buying out the company.

The broader markets are also under a mild selling pressure. Mid and small-cap indices have shed 0.4% each. The BSE mid-cap index is down 24 points at 6,177 and the small-cap index has shed 27 points at 6,373 levels.

The overall breadth is negative as 1,554 stocks are declining while 386 are advancing.