Markets remain volatile

Indian markets continue to remain volatile and in the red. However, they have recovered from the day’s low on the back of lower inflation numbers, which improved investor sentiment in the negative global environment. The Sensex and Nifty were down by 0.3% each. Sensex heavyweights like Reliance Industries and BHEL are trading with losses of 1.14% and 1.21% respectively.

Earlier, on Wednesday, Nov 23, the European and US markets tumbled over concerns on the rising yield, on the back of low demand for the German government bonds. This fuelled fears of the existing issues spreading  to the other major countries in Europe.

The European markets opened positive today, with gains between 0.39%-1.22%. Investors are looking to buy at lower levels, while short sellers will book profits after a continuous drop since the last 2 weeks. However, this bounce may remain limited, as concerns over the debt crisis continue to remain unresolved.

Asian markets are marginally up, after recovering from their initial losses. However, the Japanese Index Nikkei opened lower, as investors returned from yesterday's holiday with concerns over the European and global developments.

All of the BSE sectoral indices are trading in red zone, with marginal losses. CD, Realty and IT are taking most of the beating, each down by nearly 1%. Other indices like Metals, Tech, Bankex, Pharma, Oil & Gas and FMCG are down between 0.07%-0.6%. Auto and Consumer Goods were the top gainers, at 0.5% and 0.37% respectively.

The 30 share Sensex was lead by the gains of L&T, Jaiprakash Asso., Jindal Steel, Mahindra & Mahindra and Maruti Suzuki. Each of these gained between 1%-2% each. HDFC, HDFC Bank, Hindalco, Infosys and Tata Steel remained among the losers, all of them shedding between 1%-2%.

The market breadth, which indicates the overall health of the market, is very weak. On the BSE, 1429 shares fell, 1144 rose and 111 remained unchanged.

In conclusion, we expect the markets to remain  volatile for the rest of the day, and advise readers to exercise caution.