Markets@10: Indian stocks slide as auto sector faces weakness

The Indian stock market began with a small gain but quickly turned into a loss, with all sectors except IT seeing declines. The Nifty auto index dropped by 3%, while the real estate index fell by two and a half percent.

In the first hour of trading, both the Nifty and Sensex fell by up to 0.60%. Midcap and smallcap indices also decreased by 1%.

Bajaj Auto's shares fell around 10% due to disappointing expectations for third-quarter earnings. The company also reported no improvement in festive season sales, negatively impacting market sentiment. Additionally, the near 50% decline in the Nigerian currency has affected the company's exports.

The auto industry is generally struggling, with Mahindra & Mahindra down 3%, Maruti by two and a half percent, Hero Moto Corp by 3%, TVS Motors by four percent, and Eicher also by four percent. Analysts predict that the auto sector will see only single-digit growth this year.

Cochin Shipyard, which dropped 5% yesterday, fell another 3% today.

Shares of Popular Vehicles fell by 3% due to a seven percent decrease in revenue.

On a positive note, shares of Crisil jumped 7% after reporting a significant increase in third-quarter revenue and net profit.

Market sentiment has reacted negatively to the measures announced for reviving China's housing sector, which were seen as insufficient. This has affected Chinese real estate and construction stocks, weighing down Asian markets as well.

The Indian rupee started trading slightly lower today, with the dollar initially at Rs 84.01, later rising to Rs 84.04.

In the global market, gold is priced at $2,679 per ounce, while in Kerala, the price of gold jewellery increased by Rs 160, reaching a record high of Rs 57,280.

Crude oil prices have risen slightly, with Brent crude at $74.40.