Markets trading flat, expected to remain volatile

Indian stock markets opened in the red on negative global cues. However, they managed to recover some of their early morning losses. The benchmark indices are currently trading flat with a gain of less than 1%.

The sell off in global equity markets have extended to the Asian region as well. All Asian markets are trading in the red zone, down 0.5% to 1.5%.

Euro zone's latest plans to allow a central agency to oversee budgets of 17 countries, will only solve the Euro zone debt crisis but not serve as a solution for other critical issues. Fitch Ratings said that a comprehensive solution needs to be designed and has predicted a “significant economic downturn” in the region. The agency also added that it might cut ratings for some European countries.

Back home, BSE sectoral indices like FMCG, IT and Tech are leading with marginal gains. While Consumer Durables, Bankex and Capital Goods are the top losers with losses between 1% to 1.7%. All other indices are trading on a flat note, anywhere between -0.04% to - 0.8%.

Bajaj Auto, Bharti Airtel, Hindalco, TATA Power, Wipro, HDFC, DLF, JSPL, and ITC have gained between 0.5% to 1.2%.

In the loser's pack, ICICI Bank, JP Associate, and BHEL are trading down by 1% to 2% each. TATA Steel and L&T are leading the oack with losses at 2.32% and 2.35% respectively.

The market breadth, indicating the overall health of the market, is looking weak. On BSE, 1211 shares fell and 601 shares rose. A total of 104 shares remained unchanged.

Investors will watch out for the Inflation numbers (to be declared tomorrow) and we at DSIJ expect the markets to remain volatile for the rest of the day and advise readers to play with caution.