Markets shed morning losses

Mid-Session Commentary 2nd Nov 2011

The Indian market gave up its morning losses and is trading in the green zone, as Asian stocks recovered. The Sensex is trading higher by 121 points at 17602, and Nifty is up by 37 points at 5295. All the sectors are trading in the green zone, with oil and gas, healthcare and power giving some strength to the benchmarks.

Asian market indices like Hang Seng and Shanghai recovered from their day’s low. Nikkei, though, remained in the red amid concerns of a Greece referendum that will spoil Europe’s rescue plan.

European markets rose, as the Federal Reserve prepared to release its latest policy statement, and after the US futures’ upward move.

Back home, Index heavyweight Reliance Industries is trading higher by 1.56% at Rs 874, helping the market to gain some momentum. Other gainers, including Mahindra & Mahindra, ONGC, Jaiprakash Asso., Tata Power etc., are trading up by 1%. Hero MotoCorp continued to be the biggest Index losers, down by 2.18% at Rs 2095. Other losers include Wipro, Bharti Airtel, Coal India and Tata Steel, which are down by 1%. Reliance Communications jumped 6% to Rs 81.90, on news that Reliance Industries could use the company’s telecom assets to launch its wireless broadband services. Indo Thai Sec, which got listed today, had a very volatile session. It made a high of Rs 99.10, but is currently trading lower by 12% at Rs 65.20.  

Allahabad Bank is trading 6% higher at Rs 157.80, after posting some good Q2 FY12 numbers. Its Net Profits increased by 21% to Rs 488 crore.

The market breadth, which indicates the overall health of the market, is strong. On the BSE, 1340 shares rose and 1265 shares fell. 134 shares remained unchanged.

In conclusion, we expect the market to remain volatile for the rest of the day. Investors are also waiting for the G-20 summit, which will focus on stabilising global financial markets.