The BSE Sensex opened with over 80 point cut while the broader Nifty slipped below the key 5,250 mark in early trade Wednesday. Markets in Asia also traded lower with investors waiting for a European Central Bank meeting on Thursday and US payrolls on Friday for signs of more action to counter European debt woes and support growth.
At 09.20 a.m., the Sensex traded 73 points or 0.42 per cent lower at 17,368 while the Nifty was down 24 points to 5,250.
Markets have largely been in a range over the past few days in the absence of domestic and global cues. Analysts say the range has been getting tighter and soon there might be a breakout or a breakdown that will provide some momentum to stocks.
"The Nifty will remain frustratingly in a year-plus range between 4,538-4,728 support and 5,402-5,700 resistance. A break of either level is needed to mark further moves," Laurence Balanco of CLSA said in a note.
Sectorally, all groups of stocks traded lower, barring FMCG stocks, which are considered defensive bets in a falling market. Metals and capital goods stocks traded with the deepest cuts.
On the Nifty, 42 of the 50 stocks traded lower, with private lender Axis Bank taking the biggest hit. The stock was down 2.2 per cent after global brokerage Morgan Stanley downgraded the stock to "underweight".
Reliance Infra shares traded with over 1.5 per cent cut after a section of under construction Mumbai metro collapsed on Tuesday. Reliance Infra is the contractor for metro in Mumbai.
Private steel maker JSPL has been under selling pressure because of fall in steel prices. The company has also been hit by the CAG report on CAG. The stock traded 1.5 per cent lower. It is down 13 per cent over the last month.
State-run oil refiners like BPCL, HPCL and IOC gained on hopes of a price hike across all fuel categories after Parliament session ends. BPCL was the top Nifty gainer, up 1.7 per cent.
FMCG major HUL and tobacco major ITC also traded with gains.
The market breadth was weak with only 25 per cent stocks trading higher on the broader BSE 500.
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