The market is trading flat and with a negative bias

As mentioned in our morning update markets opened positive, however lost the momentum in the next session. Benchmarks have witnessed volatility this morning. Oil and Gas stocks were under pressure while Realty and CD stocks were on buyers' radar.

Asian stocks rose, extending the biggest weekly gain since March on the region’s benchmark index, after Group of 20 finance chiefs meeting in Paris endorsed parts of a plan to contain Europe’s debt crisis. While there is no clear indication over the debt plan, markets will take the cue from the opening of European markets.

Back home Tata Motors shares were trading 2.95 per cent higher, while its peer Maruti Suzuki gained 2.28 per cent in the morning trades. Sterlite industries, DLF, SBI, Hindalco Inds, Mahindra and Mahindra, HDFC, ONGC, Bajaj Auto, ICICI bank, Tata Steel, Hero Motorcorp, Hindustan Unilever, ITC and Tata Power were among the gainers list. RIL was down 3.15 per cent in the early trade today, while NTPC and coal India were also in the losers list indicating another bad day for them. New listing candidate Onelife captial surged 25 per cent to 146.40 its debut. Jaypee Infratech Ltd surged by 14.82 per cent and was the major gainer in the morning.

As we said in our morning update Zenith Infotech dropped 4.95 per cent over its FCCB issue. Shares of NIIT were trading 14.91 per cent higher as its management has approved its divestment plan. Karur Vysya Bank was trading marginally higher over expansion spree. Oberoi Realty has also been on the buyer’s radar after a decent performance was reported by the company in Q2.

The market breadth, indicating the overall health of the market, is positive. On BSE, 1506 shares rose and 1021 shares fell. A total of 94 shares remained unchanged.

In conclusion, we expect the market to remain volatile for the day and advice readers to 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.