Diwali 2011 opening - Indian Markets trade on a positive note

Market Update - 24 Oct 2011 @ 10:30 am

As mentioned in our morning update markets have opened on a positive note indicating a good start to the trade on Diwali day on the streets. The general mood, across the bourses, appears to be positive on hopes of a solution to the European debt crisis. Over the weekend, EU leaders seemed to have neared an agreement on bank recapitalization and leveraging their regional rescue fund. Wednesday's summit will show how the solution pans out.

Other Major Asian markets are also seen trading in the green zone following strong global cues on optimism about progress in resolving Europe's debt crisis.
 
Back home, financial shares like Axis Bank, SBI, ICICI Bank, HDFC are leading the SENSEX pack. Tata Motors, JP Associates, DLF, Maruti Suzuki, TCS, Wipro, Sesa-Goa, Sterlite Industries (ahead of numbers), Tata Steel, JSPL, Hindalco, Bharti Airtel and Reliance Industries are also among the leaders in the market.

ONGC has gained 2% at Rs 271 on reports that the company will get a windfall of over 1,300 crore from the domestically produced natural gas with the rupee touching a 30-month low against the dollar. Kingfisher Airlines and Jet Airways moved up 2-3.5% on FDI news.

However, Reliance Communications fell just 0.4% post court charged all 17 accused (A Raja, Kanimozi & others) in 2G case.

Vaswani Industries has plunged to Rs 13, a huge 73% discount against its issue price of Rs 49 per share, after listing at Rs 33.45 on the Bombay Stock Exchange. Around 120,000 shares have changed hands on the counter in opening deals.

The market breadth, indicating the overall health of the market, is strong. On BSE, 1405 shares rose and 725 shares fell. A total of 92 shares remained unchanged.

In conclusion, we expect the market to remain positive for the day and expect the European markets to provide some vital cues on the desired direction of the market trend in late afternoon session. Nevertheless we shall keep updating you regularly through our market commentary.