Sensex cuts some losses but still in deep red

Indian markets pulled off from the day's low but were still trading in the red on weak global cues. The benchmark indices - Sensex and Nifty- both opened more than a per cent down. The Sensex was down 223 points while Nifty was trading 67 points down from yesterday's close.

Stocks have declined to the lowest in three months. The Nifty was trading below 4,900 for the first time since February 26 this year.

The S&P 500 Nifty and most Asian indices were trading below the 200 daily moving average (DMA). Among the sectoral indices, high beta realty and metal were the worst hit.

The Sensex and Nifty closed in the green yesterday despite negative global cues on the back of the oil and gas index doing well led by index heavyweight ONGC that gained 8 per cent. But there was no saviour for the Dalal Street today. ONGC recoverd from a 2.5 per cent slump and was trading down 0.65 per cent.

All the sectoral indices were trading in the red and the fall was led by metals and realty. Realty was down 2.9 per cent while metals lost 2.73 per cent. The market breadth was negative and the broader indices were in red. The BSE smallcap was down 2.1 per cent and BSE midcap was down 1.84 per cent.

Among individual stocks, Bank of Rajasthan rose 9.98 per cent while ICICI Bank fell 1.48 per cent.

Among the top gainers were Piramal Healthcare (3.9 per cent), Cipla (1.54 per cent), GAIL (1.81 per cent) and IOC (0.58 per cent). ITC was up 0.36 per cent. The company will announce its results today.

Among the losers were HDIL (4.3 per cent), Hindalco (4.25 per cent), Lanco Infra (4.22 per cent), IVRCL Infra (3.69 per cent), JP Associates (3.47 per cent).

Jaypee Infratech got listed BSE today at Rs 92. Its issue price was Rs 102.

Japan's benchmark index, the Nikkei 225, was down 2.79 per cent and was trading at 9,750. The Shanghai Composite was down 0.39 per cent while the Australian index, the S&P ASX 200 was down 0.58 per cent. The Australian market slumped to its 10 month low at one time.

Earlier, the S&P 500 broke its 200 day moving average while the Dow posted a 376 point decline, its biggest since March 5, 2009. Analysts said more investors seemed to be grasping the possibility that the U.S. recovery could be in jeopardy, and that many were realizing that the stock market's big rebound since March 2009 may not have been justified.

European markets fell for a second session on Thursday to a two-week closing low.