Indian markets continue trading sideways

Mid-Session Commentary 31thOct 2011

Markets To Move Sideways

The Indian markets have continued moving sideways on the back of some buying witnessed in the Bankex and IT space and selling pressure in the oil and gas, auto and healthcare sectors. 

Meanwhile, the European markets have also opened on a negative note, tracking weak global cues and on the back of renewed concerns over the Euro debt crisis. 

Back home, IT major Wipro continued to be the Index gainer, trading 2% higher at Rs 379. Other banking heavyweights like HDFC and SBI are trading higher by 1%. Tata Motors is trading down 3% at Rs 200. Other Index losers include Sterlite Industries, Jindal Steel, ONGC, DLF, Coal India, etc., which are trading down by 1-2%. ICICI Bank and Hindustan Unilever are trading in a very narrow range, and will take some cues once they come out with their Q2 FY12 earnings.

Bank of Baroda surged 5.51% to Rs 779.60 after posting its Q2 FY12 numbers. The total income of the bank increased by 37% to Rs 7985 crore, while the Net Profit rose by 14% to Rs 1166 crore.

The market breadth, which indicates the overall health of the market, is strong. On the BSE, a total of 1471 shares rose and 1187 shares fell. 92 shares remained unchanged.

In conclusion, we expect the markets to remain sideways for the remainder of the day, as there is no major news which can drive the markets. Investors are also waiting for monetary policy meeting by the European Central Bank and the U.S Federal reserve, as well as the G-20 summit, with a focus on stabilising the global financial markets.