Markets open lower, auto shares slips

Markets opened lower tracking subdued global cues and weakness in auto shares. The Nifty slipped 20 points, at 5513 and the Sensex declined 60 points, at 18,362.

Analysts expect markets across the world to remain jittery ahead of the US Federal Reserve Ben Bernanke's speech. Given the weak economic data from the US economy, analysts expect Federal Reserve Chairman Ben Bernanke to talk about Quantitative Easing part three when he delivers speech on the US economic outlook later today. Last year in November the Federal Reserve injected $600 billion into the system by buying bonds to propel the US economy. Markets across the world will closely watch Bernanke's speech.

Across Asia markets were trading mixed. Hong Kong's Hang Seng slipped 1.6% as it was catching up to losses led by disappointing U.S. jobs data at the end of last week. South Korea's Seoul Composite plummeted 1%. The sell off seen today is mainly in the financials which were the worst performers since the past few trading sessions. Japan's Nikkei stock average and Shanghai Composite held on to marginal gains.

Back in India market Analysts expect range bound trade. Ashish Chaturmohta, Vice President - Derivatives and Technical Analyst said, "Nifty has crucial support around 5440 level, below which selling could be intense. Also the put maximum concentration is seen at 5400 strike price, suggesting an important level for the market. On the upside, if Nifty sustains above 5600 levels on closing basis, it may lead to marginal short covering the market."

Among individual stocks Oil India was unchanged at Rs 1,293 on news report that it plans new overseas subsidiary following its experience in Libya. Also UTV Software was unchanged at Rs 731 after 12% up move yesterday over the buzz that Walt Disney may hike stake in the company.

BSE Auto shares were leading the losses down 0.5%. Maruti Suzuki dipped 1.4% after workers went on a strike in Haryana disrupting production. Hero Honda declined 1% and Tata Motors was down 0.7%.

Defensive space Healthcare saw some buying interest. The BSE Healthcare index was up 0.2%. IPCA Laboratories gained 1.3%, Gloaxosmith Pharma added 0.8% and Apollo Hospital edged up 0.5%.

Broader markets were trading flat. The midcap and the smallcap indices were off 0.1% each.

Top losers on the Sensex were Maruti, down 1.4%, HDFC was off 1.2% and Tata Power was also down 1.2%. Prominent gainers on the Sensex were Reliance Infra, up 1.1%, Cipla gained 0.8% and Tata Steel was up 0.6%. Market breadth was positive, 627 stocks advanced for 449 stocks which declined.