Market breadth remains strong

As mentioned in our morning update market opened sideways and now is trading higher 200 points on the back of good numbers from Infosys and  cues from China where there is Speculation that government will provide more financial support to equities after valuations dropped to record low levels. BSE I.T index is up 4.50 per cent and other Technology and Banking stocks are trading firm.

Infosys reported a growth of 10.8 per cent in net profit at Rs 1,906 crore for the quarter Q2FY12 versus previous quarter of Rs 1,720 crore. Revenues jumped 8.2 per cent to Rs 8,099 crore as against Rs 7,485 crore on quarter-on-quarter basis. Earnings per share rose 33.36 per cent in the quarter ended September 30, 2011. S D Shibulal, Managing Director of the company said that "The global macroeconomic environment is still uncertain. It is and should be a concern for the IT industry. In this scenario, clients are looking for new opportunities for growth, accelerated innovation and increased returns on investments"

Max India shares gave up its initials gains and is now trading one per cent higher at Rs 180. The stock in the initial trading sessions was up 5 per cent at Rs 185 after making an intraday high of Rs 190.05. on the back of Life Healthcare acquired 26 per cent stake in its subsidiary Max Healthcare. Among the sectoral pack, banking shares like ICICI, SBI and HDFC bank were up a per cent. TCS and Wipro on expectation that they would also post good numbers after Infosys were trading higher 3 per cent. FMCG major ITC and HUL were also trading higher a per cent. On the other hand Tata Motors and Tata Power were among the top losers among the Index stocks both down 2.5 per cent.

The market breadth, indicating the overall health of the market, is strong. On BSE, 1723 shares rose and 887 shares fell. A total of 99 shares remained unchanged.

In conclusion, we expect the market to remain volatile for the day as markets await the IIP data figures and advice reader to wait and watch for the European markets to open as they may provide some vital cues on the desired direction of the market trend. Nevertheless we shall keep updating you regularly through our market commentary.