Markets drop lower on weak global cues

Commentary

oi-Sunil

By Sunil Fernandes

Published: Friday, January 4, 2013, 9:42 [IST]

Markets dropped on profit taking and weak global cues, after the Fed meeting minutes revealed disagreement on how long the central bank should buy bonds. This led to a drop in the US markets overnight, followed by the Indian markets.

The Sensex was trading lower by 25 points, while the Nifty lost 13 points in early trade. Bharti Infratel rallied more than one per cent after the telecom tower infrastructure company said it would be included in the FTSE Global Equity Indices.

KEC dropped 4% after the infrastructure company was under the scanner of revenue authorities as the income tax department carried out extensive nationwide survey operations on nearly 9 official premises of the company.

Jet Airways gained after the company said it was in discussion with Etihad Airways.

Public sector stocks led gains on the Nifty with ONGC, BPCL and BHEL amongst the winners. The top losers from the Nifty were DLF, Sesa Goa, Tata Power, Jindal Steel, HDFC and Kotak Mahindra.

Tata Power dropped after the company said it has decided to stop supplying power to three state-owned distribution companies in Rajasthan, citing consistent failure to meet payment obligations.

IT stocks continued to gain with Wipro, HCL Tech, Mphasis, TCS, Hexaware, Mahindra Satyam and Infosys.

Auto stocks came in for selling pressure today with Amtek Auto, Ashok Leyland, Hero MotorCorp and Bajaj Auto dropping.

Real estate stocks too were amongst the losers with Brigade, Parsvnath and HDIL coming in for some selling.

Meanwhile, markets in Asia, apart from the Japanese and the Chinese market dropped on weak global cues.

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