Markets still volatile, close flat

Indian markets closed flat after remaining volatile for the entire trading session. The European markets rose as the Federal Reserve prepared to release its latest policy statement and following the upward move of the US futures. Among the sectors, oil and gas, healthcare and FMCG supported the market, while auto and tech closed marginally in the red, dragging the market down.

Asian markets remained a mixed bag. China and Hong Kong’s markets closed up on speculations that the Federal Reserve might hint at new stimulus measures for the US economy as it concludes its two-day policy meeting. Japan closed in the deep red.

The Dow Jones Futures is currently trading 110 points or 0.93 per cent down at 11700 indicating a negative sentiment in the US markets.

Back home, Reliance Industries remains the top gainer among the Sensex heavyweights, with a 1.72% gain, closing at Rs 871 on reports that it may tie up with Reliance Communications for telecom services. Other stocks like Tata Power, Jindal Steel, Wipro, Hindustan Unilever and ONGC also added 0.11-1% each.

On the other hand, Bharti Airtel and Hero MotoCorp were the biggest losers today, falling 2.6% and 2.8%, respectively. Bharti Airtel is going to declare its second quarter numbers on Friday. Anil Dhirubhai Ambani Group's stocks rallied today.

Reliance Capital, Reliance Power and Reliance Infrastructure gained between 1.5-4%. Reliance Communications shot up 5.5% on reports that RIL may tie up with the company for telecom services, and is likely to use the towers and fiber optic cables of Reliance Communications to provide high-speed data services.

We advise our reader to keep track of companies like SAIL, TVS Motors, Ashok Leyland, Welspun Corp. Mannapuram Finance, Jubilant Food, etc., as they are going to post their Q2 FY12 numbers tomorrow. 

The BSE clocked a turnover of Rs 1984 crore, lower than Rs 2231 crore as on 1st November 2011. The market breadth, which indicates the overall health of the market, was negative. Out of the total of 3277 stocks traded, 1601 stocks declined, 1559 advanced and 117 stocks remained unchanged.

In conclusion, we expect the markets to remain volatile for tomorrow. Investors should also watch out for the G-20 summit, which will focus on stabilising global financial markets.