Markets trading positive on a flat note

Indian markets opened positively and are trading on a flat note, with both the bourses up by less than 1%. Short covering helped the market to gain after falling continuously for the last one week. Sensex heavyweights like Reliance Industries and BHEL rose by 1.14% and 2.23% respectively.

Back home, investors will keep a watch on the rupee, which lost 1.6% on Monday, 21st Nov, to end at 52.15 against the dollar.

However, Asian shares fell, as fears mounted about the European politicians' ability to tackle huge debt burdens. The Nikkei, Hang Seng and Shanghai Composite are each down by an average of 0.9%.

Amongst the BSE Sectoral Indices, all the indices barring Consumer Durables are trading positively, with gains between 0.6%-1%. Tata Motors, Reliance Infrastructure, JP Associates, Reliance Communications, SBI, ICICI Bank, IDFC, DLF, Sterlite, Hindalco, JSPL, Reliance Industries, NTPC and SAIL all gained between 1-2%.

Among the losers on the BSE Index were Bajaj Auto, Hero MotoCorp, Bharti Airtel, Wipro and Sun Pharma Industries, trading down by 1-2% each.

The market breadth, which indicates the overall health of the market, is weak. On the BSE, 1037 shares fell, 920 rose and 74 shares remained unchanged.

We expect the markets to remain volatile for the rest of the day, and advise investors to play with caution.