Markets to remain volatile through the day

Mid Session Commentary 3rd November 2011 (10:30AM)

As we mentioned in our morning update, the markets opened in the negative, in line with global cues. At present, both the bourses are trading in the red zone, with the Sensex down by 74 points to 17391 and the Nifty down by 22 points at 5236.

Asian markets are trading in a mixed bag. The Chinese market is up after speculations that the government will accelerate measures to boost the economy. The Japanese market is closed today. 

Back home, Hero MotoCorp continued yesterday’s losses, and is among the top losers on the Index, down by 2% to Rs 2048. FMCG major, HUL, saw some profit booking after three days of gains on the back of its strong Q2 FY12 numbers. The scrip is down 1.74% to Rs 383.40. Other losers, including Sterlite Industries, Jindal Steel, TCS, Infosys, HDFC Bank, Tata Motors, etc., are down by 1-1.5%. On the other hand, BHEL is among the top Index gainers, up 1.25% at Rs 320. Other gainers include Cipla, Coal India, SBI, Tata Power, all up by 0.5-1%. Indo Thai Securities, which was listed yesterday, continued its losses and is down 8.26% at Rs 21.10.

The market breadth, which indicates the overall health of the market, is strong. On the BSE, 1072 shares rose and 733 shares fell. 96 shares remained unchanged.

In conclusion, we expect the market to remain volatile for the day. Today, companies like Ashok Leyland, Gujarat Gas, Jubilant FoodWorks, SAIL, Sun TV Network, Tata Teleservices, TVS Motors, Welspun Corporation etc, will post their Q2 FY12 numbers.

The European markets will also provide some vital cues on the direction of the market trend in the late afternoon session. We shall keep updating you about these developments regularly through our market commentary.