The markets have started the day on an extremely weak footing, succumbing to the weak cues from the equity markets worldwide. The indices had slid by nearly a per cent on Wenesday and have only extended the losses in early trade, with no respite in sight. The Sensex is quoting at 17943, lower by 146 points and the Nifty is at 5380, down 39 points. The midcap index is at 7515, weaker by 29 points and the smallcap index is at 9597, down 45 points.
The US stocks had erased the year's gains in the broadest selloff in a month-and-a-half on Wednesday as fears of sustained global economic stagnation caused investors to flee to safer assets. The Fed had made a bleak assessment of the economy on the previous day. The Dow shed 265 points, or 2.4% at 10,378 and Nasdaq lost 68 points, or 3% at 2,208. And taking cues from the developments in the US markets, the Asian indices are trading in the red as well; Hang Seng weakened by 217 points and Nikkei fell by 187 points in early trades.
The metal and IT sector are exerting pressure on the indices. Sterlite has slid by 2.6% at Rs 167 to emerge as the top loser on the Sensex. Tata Steel has weakened by 1.7% at Rs 511 and Jindal Steel has shed 1.1% at Rs 646. In the IT pack, Wipro has weakened by 1.3% at Rs 412, Infosys has shed 1.1% at Rs 2777 and and TCS has lost 0.8% at Rs 851. And Tata Motors is seeing profit-booking after the stellar gains post its Q1 numbers. The auto major has driftedf below the 1000 mark and is now quoting at Rs 995, down 1.2%. And index heavyweight RIL is just shy of the technically crucial 970 level, quoting lower by 1% at Rs 972.
There is resilience in select pockets though. SBI has strengthened by 0.6% at Rs 2621 to emerge as the leading gainer on the BSE. Hindustan Unilever has gained 0.6% at Rs 262 and ONGC had added 0.3% at Rs 1240.
The market breadth is weak. Out of 1850 stocks traded on the BSE, there are 626 advancing stocks as against 1167 declines.
