Markets decline on fresh worries in Europe

Commentary

oi-Sneha

By Sneha B K

Published: Tuesday, June 12, 2012, 9:53 [IST]

Indian benchmark indices, opened lower on Tuesday due to profit booking and tracking weak Asian cues. The dramatic fall in US stocks towards the lkast hour of trade on terms of the Spanish loan, also affected sentiments. The Sensex was trading at 16,618 points, lower by 50 points and the Nifty was seen trading at 5,037 points, lower by 16 points at 9.35 am IST.

Asian bourses fell on Tuesday as hopes faded on the Spain bailout as investors felt that bailout will not halt the deepening debt crisis in Europe. The Nikkei 225 was trading down by 1.08%, while the Hang Sang was down by 0.83%. The Shanghai Composite was lower by 0.80%.

On Monday, the domestic indices slipped into the red soon after reports of a S&P downgrade threat surfaced. The global rating agency S&P has said that India may become the first country among BRIC (Brazil, Russia, India and China) to lose investment grade rating.

The gainers in morning trade were Reliance Infrastructure, Sterlite Industries, Tata Power and Jaiprakash Associates.

Stocks that failed to lure investors in early trade was HCL Technologies, Cipla, Sun Pharmaceuticals, Ambuja Cement.

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