Subdued opening for the markets

The Indian markets opened with marginal gains. However, they lost the early gains and remained volatile, with the Sensex down by 180 points and Nifty down by 51 points.

Yesterday, the European stocks went down on the back of poor demand at a German government-bond auction, which raised concerns about the European issues starting to affect the stronger countries.

In the US too, the stocks ended in the red on Wednesday, Nov 23, on the back of concerns from poor demand for the German bonds and weak Chinese factory data.

Asian markets recovered after initial losses, and were trading with marginal gains. However, the Japanese Index, Nikkei, opened lower, as investors returned after a day's holiday with concerns on the European and global developments.

Back home, all the sectoral indices are trading in the red zone. The BSE Realty, Consumer Durables and Metals indices, down by nearly 1.7% each, are leading the losses. Other indices too were down between 0.12%-1.3%.

Coal India, Bharti Airtel, Tata Power, Hero MotoCorp, Mahindra & Mahindra  ICICI Bank, Maruti Suzuki and HUL were all up between 0.5%-1% in early trade. However, others like Tata Steel, Reliance Industries, TCS, Jindal Steel, Tata Motors and Bajaj Auto were under pressure.

The market breadth, which indicates the overall health of the market, is very weak. On the BSE, 1318 shares fell, 604 shares rose and 56 shares remained unchanged.

In conclusion, we expect the market to remain volatile for the day. Also, the European markets will provide some vital cues on the desired direction of the market trend in the late afternoon session.