Markets weak ahead of IIP numbers
The markets are weak in early deals with the Sensex trading well below the 10K mark. Heavy selling has emerged in realty, metal and banking stocks. The Nifty is trading 2.7 per cent lower.
“Even if IIP numbers are positive then too it would not make too much of a difference for the markets. GDP at 7.5 per cent has already been factored in and this would get reflected in the IIP numbers,” said Sandeep Shenoy, Head of Equities, PINC Research.
Heavy selling has emerged across the board. The realty index on the BSE is down over 5 per cent and the metal index has shed 3.4 per cent. BSE Bankex has lost 3 per cent while oil&gas index is trading 2.8 per cent lower.
“US recession is long drawn out and markets would remain muted. Markets are still not factoring slowdown in earnings and may test October lows in near term,” said Sandeep Bhardwaj, CEO and Head Equity Strategy, Tower Capital & Securities.
Realty major, DLF, leads losers in the Sensex pack. It is down 7 per cent. Hindalco, JP Associates and ICICI Bank are the other main losers in the group.
U.S. stocks fell on Tuesday on a wave of worrisome news that revealed few industries are safe from the consumer spending slump.
The Dow Jones industrial average closed down 176 points, or nearly 2 percent, at the 8,693 level while broader stock indexes fell more than 2 percent.
Key Asian indices are trading weak today. South Korea’s Kospi, Hong Kong’s Hang Seng and Japan’s Nikkei are down over 1 per cent each.
By NDTV