Asian markets declined on Tuesday morning because of losses in financial shares on resurgence of sovereign financial debt woes. The Hang Seng index was down 1%, the actual Shanghai Composite index declined 0. 3% and the Nikkei get rid of 1. 3% in the morning trades. The US markets were shut on Monday due to Labour day holiday.
In Europe, the cost of insurance against bank climbed to some record high and this had a ripple effect about the banking shares. Risk aversion for equities resumed over worries that sovereign debt crisis would explode right into a full blown financial crisis.
Back in India, “if the actual Nifty closes below 4, 950 levels, the index might drag towards 4, 800 level supports. On the benefit, it caps an important resistance at 5, 080 amounts; if sustained with volume, support may gain momentum in the direction of 5, 120-5, 240 levels, " said Ashish Chaturmohta through IIFL Private Wealth.
On Monday, the foreign institutional traders were net buyers of Rs 133 crore and household institutional investors were net buyers of Rs 1, forty seven crore.
Among the sectoral indices, BSE IT and financial indices were leading the losses in morning trades, lower almost 1% each.
From the IT space, Tech Mahindra ended up over 1%, Infosys and Mphasis was off 1%.
Investors also cashed from midcap banks, Union bank was off 2%, Bank associated with Baroda and Punjab National Bank slipped over 1% every.
BSE Auto index was in top gear, up more than 1%. Bajaj Auto zoomed over 1%, Hero Motor Corp additional 1% and Ashok Leyland was up 0. 5%.
In the broader markets, the midcap and the smallcap indices had been trading marginally higher.
The top gainers on the Sensex had been Maruti Suzuki, up 3%, followed by Bajaj Auto as well as Tata Motors, up over 1% each. Among the losers had been Wipro, TCS and DLF, down over 1% each.