Indian markets open lower on weak Asian cues

The Indian equity markets have made a weak start as investors booked their profits recorded in the previous three sessions amid a feeble trend in other Asian markets. All the Asian peers were trading in the negative terrain at this point of time, indicating somber investors’ sentiment. Though, the US markets kept gaining for the entire passing week, their longest gaining streak in last two months. Back home, the market opened lower in the initial trade as funds and retail investors locked in gains recorded in the past few sessions amid a weakening trend overseas. On the sectoral front consumer durables, auto and healthcare remained the top gainers while, capital goods, banking and metal witnessed the most selling pressure, dragging down the Sensex. However, the broader indices too were struggling to get some traction and trading flat at this point of time while, the market breadth on the BSE was positive; there were 812 shares on the gaining side against 780 shares on the losing side while 74 shares remained unchanged. 

The BSE Sensex opened at 16,865.93; about 68 points lower compared to its previous closing of 16,933.83, and has touched a high and a low of 16,865.93 and 16,772.45 respectively.

The index is currently trading at 16,831.55 down by 102.28 points or 0.60%. There were 9 stocks advancing against 21 declines on the index.

The overall market breadth has made a positive start with 48.74% stocks advancing against 46.82% declines. The broader indices were trading flat; the BSE Mid cap index up by 0.03% while, Small cap index down by 0.01%.

The top gaining sectoral indices on the BSE were, CD up by 0.64%, Auto up by 0.55%, HC up by 0.18% and Oil and Gas was up by 0.01%. While, CG down by 1.02%, Bankex down by 1.00%, Metal down by 0.82%, Realty down by 0.73% and IT down by 0.67% were the top losers on the index.

The top gainers on the Sensex were Tata Motors up by 1.61%, ONGC up by 1.46%, Maruti Suzuki up by 1.21%, M&M up by 0.39% and Tata Power was up by 0.23%.

On the flip side, DLF was down by 2.36%, SBI was down by 1.44%, Sterlite Industries was down by 1.34%, L&T was down by 1.24% and ICICI Bank was down by 1.14% were the top losers on the Sensex.

Meanwhile, India’s foreign direct investment (FDI) for July plunged by 38% to $1.09 billion from $1.78 in July 2010. The foreign capital inflows have shown decline for the first time in current financial year. However, FDI inflow for the first four months of current fiscal increased by 92% to $14.45 billion from $7.56 billion in the same period of last fiscal.

The sectors like services, construction activities, power, computers and hardware, telecommunications and housing and real estate attracted maximum FDI. During June, the FDI inflows had surged by 310% to 11-year monthly record of $5.65 billion, and in May it had increased by 111% to $4.66 billion over the same month last year.

In the first six month of current calendar year, foreign investment surged by 57% to $16.83 billion. Despite the uncertainties in the global economy, India’s FDI inflow is expected to reach $35 billion from $19.4 billion in the last financial year, on account of major deal like RIL-BP and Posco.

In the last two financial years, India has been witnessing slowdown in FDI inflow. For the 2010-11, FDI declined by 25% to $19.43 billion from $25.6 billion in 2009-10, and in 2008-09 FDI stood at $27.3 billion. Counties like Mauritius, Singapore, the US, UK, Netherlands, Japan, Germany and the UAE are the major source of FDI.

The S&P CNX Nifty opened at 5,068.40; about 16 points lower compared to its previous closing of 5,084.25, and has touched a low of 5,036.60 while high remain its opening.

The index is currently trading at 5,036.75, lower by 47.50 points or 0.93%. There were 13 stocks advancing against 37 declines on the index.

The top gainers of the Nifty were Ranbaxy up by 1.80%, GAIL up by 1.64%, Tata Motors up by 1.48%, ONGC up by 1.16% and Maruti up by 0.78%.

On the flip side, DLF down by 2.32%, Sesa Goa down by 2.05%, SBI down by 1.71%, ICICI Bank down by 1.67% and Sterlite Industries down by 1.63%, were the major losers on the index.

All the Asian equity indices were trading in the red; Shanghai Composite was down 34.96 points or 1.41% to 2,447.38, Hang Seng was down 408.16 points or 2.10% to 19,047.15, Jakarta Composite was down 44.99 points or 1.17% to 3,790.20, KLSE Composite was down 12.29 points or 0.86% to 1,418.64, Straits Times was down 20.05 points or 0.72% to 2,768.99, Seoul Composite was down 8.54 points or 0.46% to 1,831.56 and Taiwan Weighted was down by 88.05 points or 1.16% to 7,489.35.