The Indian markets have lost some ground in opening trade, with the BSE Sensex and the NSE Nifty losing 0.5% each on sluggish global cues and concerns over Spain.
The broader indices are rather subdued after gaining in the past couple of sessions. Defensives like Pharma, FMCG, IT and Consumer Durables indices are back in vogue as investors return to safe-haven plays.
Market analyst Sudarshan Sukhani of s2analytics.com expects the market to remain choppy . "Now we are distinctly seeing a small mild downside, which should continue". he told CNBC- TV18.
Traders may get some support with Chief Economic Advisor Raghuram Rajan’s statement that India’s recent reforms measures has changed international perception about the country for the better and is likely to reverse the downward trajectory of economic growth and could help avert a credit ratings downgrade.
Maruti Suzuki is down 1.54 percent after settling its wage issue with the Gurgaon plant workers. The auto major has hiked salaries by an average 75%.
UB group companies too will be in limelight after announcement that United Spirits (USL) and the group’s holding company, United Breweries (Holdings), were in talks to sell a stake in USL to the world’s largest liquor company, Diageo. Kingfisher Airlines has gained 4% ahead of AGM today.
Deccan Chronicle Holdings lost 1.5 percent as lenders failed to admit the company into corporate debt restructuring (CDR) cell.
Reliance Industries is down half a percent as the company is re-entering the telecommunication business and is being talked as the most aggressive bidder in the November auction of telecom spectrum.
Yes Bank is down 0.6 % after the financial supporter of beleagured Deccan Chronicles Holdings Ltd moved the Bombay High Court, saying it would like to intervene in the petition filed by DCHL challenging the decision of the BCCI to terminate its IPL franchise 'Deccan Chargers'.
BHEL is down 2 percent after the company said intends to set up a 5 MW solar power plant in its boiler auxiliary plant complex at Ranipet near Chennai.