Weak global cues sees markets open lower

Mumbai: The markets have opened on a weak note following negative sentiment across the globe, especially in US markets, which slipped after weak earning reports from Morgan Stanley and FedEx. Heavy selling pressure seen in realty, capital goods, banking and cement stocks. Midcap and small cap stocks are also following same trend.

At 0956 hrs IST, the Sensex was down 228 points at 15,193 and the Nifty down 65 points at 4,517. The CNX Midcap was down 62 points at 6,151.

Amongst frontliners, Unitech, Wipro, HDFC, Tata Comm, BHEL, JP Associates, Cipla, M&M, Maruti, ONGC, L&T, HDFC Bank, ICICI Bank, Reliance Infra, DLF, BPCL, ACC, Grasim, Ambuja Cements, Hind Unilever, ITC, SBI and Reliance Ind have slipped.

Ranbaxy Laboratories has lost nearly three per cent and not responded to the news that the company has reached an out of court settlement with Pfizer on Lipitor litigation. Both companies also agreed to settle Caduet & Quinapril cases. Ranbaxy and Pfizer agreed to withdraw all litigations against each other.

On the primary market front, Niraj Cement Structurals has listed at Rs 181 as against its issue price of Rs 190.

Asian markets were trading lower; Nikkei was down 1.9 per cent, Kospi 2 per cent, Hang Seng 1.7 per cent and Taiwan Weighted 1.8 per cent.

US markets fell sharply yesterday led by financial and auto stocks after worrisome results from Morgan Stanley, FedEx and others depressed market sentiment. The Dow closed at three month low at 12,029.06, down 131.24 points, or 1.08 per cent. The Standard & Poor's 500 index lost 13.12 points, or 0.97 per cent, to 1,337.81, and the Nasdaq composite index declined 28.02 points, or 1.14 per cent, to 2,429.71.

Crude prices rose as a strike threat by oil workers in Nigeria stoked supply concerns ahead of a meeting of top producers and consumers aimed at tackling soaring energy prices. The crude rose USD 2.67 to USD 136.68 a barrel on the NYMEX.

Market cues:

• FIIs net buy $92.3 mn in equity
• MFs net buy Rs 258 cr in equity
• NSE F&O Open Interest down by Rs 554 crore at Rs 85,536 crore

F&O cues:

• Futures Open Interest down by Rs 685 crore and Options Open Interest up by Rs 131 crore
• Nifty June Futures shed 6.5 lakh shares shares in Open Interest
• Nifty July Futures add 6.5 lakh shares in Open Interest
• Nifty June at 18-point discount, July at 30-point discount
• Nifty Open Interest Put-Call ratio unchanged at 1.54
• Nifty Puts, Calls Open Interest unchanged
• Nifty 4500 Put adds 3.8 lakh shares in Open Interest
• Nifty 4400 Put sheds 3.1 lakh shares in Open Interest
• Nifty 4600 Call adds 2.1 lakh shares in Open Interest
• Nifty 5000 Call sheds 2.4 lakh shares in Open Interest
• Stock Futures shed 40 lakh shares in Open Interest