Metal, realty drag Sensex down
The markets are weak in early trade with the Sensex shedding 1.8 per cent, led by selling in metal, realty and capital goods stocks. It is trading at 10,330 levels. The Nifty is trading 1.6 per cent lower.
“Yesterday Nifty closed very near to its resistance level. The Nifty would trade in the range of 3065 and 3190 points today. If it closes below 3085 then it may test 2900 levels again,” said Bharat Dalal, Fund Manager, Dawnay Day AV Financial Services.
Sterlite Industries, leads losers in the Sensex pack. It is down 7 per cent. Hindalco, JP Associates and Tata Steel are the other main losers in the group.
“Fundamentals are still weak and so markets are likely to remain volatile. Inflation and money markets still remain a concern in India. India economic indicators are pointing towards further slowdown,” said U R Bhat, Managing Director, Dalton Capital Advisors (India).
Wall Street caved in to its economic anxieties and closed lower on Monday, giving up an early rally over a stimulus package in China and refocusing on the acute pullback in spending that is pummeling U.S. companies. The Dow fell 73.27, or 0.82 percent, to 8,870.54, after rising by 215 points in early trading and tumbling by as many as 183. Broader indexes also ended lower. The Standard & Poor's 500 index fell 11.78, or 1.27 percent, to 919.21, and the Nasdaq composite index fell 30.66, or 1.86 percent, to 1,616.74.
Key Asian indices are trading mixed today. While South Korea’s Kospi has surged 0.4 per cent, Hong Kong’s Hang Seng and Japan’s Nikkei are down over 0.04 per cent each.
By Actionforex