Markets opened on weak note expected to remain volatile

The Indian markets opened on a weak note loosing yesterday gain in early trades.  Weak global cues continue to hurt the investor’s sentiments in the market. Sensex and Nifty both were up by 0.33 and 0.22% respectively. A meeting held by Fed yesterday did not provide any big change in the policies to boost the US economy which sent negative sentiments among investors on concerns on significant downside risk to the economy. Fed also highlighted the risk to the US economy by the European debt crisis.

Asian markets too continued its yesterdays fall and are trading in red after the statement of German chancellor who rejected to suggest on the 500 billion euro bailout fund which affected the sentiment of the investors globally.

Back home, BSE sectoral indices like CG, FMCG, Pharma, Realty, Tech and IT are leading with marginal gains between 0.3-1%. While all other indices are trading on a flat note, anywhere between -0.04% to - 0.8%.

BHEL, Cipla, HUL, JP Associate, L&T, TCS, Wipro, Bharti Airtel, ITC, gained between 0.2-1.2%. While Sun Pharma is leading with gains of more than 2%.

Among the losers on the BSE Index TATA Power, Hero Moto Corp, Bajaj Auto, HDFC, and Hindalco Industries, were trading down between 0.4-1% each. While NTPC remains the top loser among the pack down by 1.65%.

The market breadth, indicating the overall health of the market, is positive. On BSE, 929 shares rose and 725 shares fell. A total of 96 shares remained unchanged.

In conclusion, we expect the market to remain Volatile (Inflation number to be declared today) for the day. Also European markets will provide some vital cues on the desired direction of the market trend in late afternoon session. Nevertheless we shall keep updating you regularly through our market commentary.