Markets open on weak note, expected to remain volatile

The Indian markets opened on a weak note, losing yesterday gains in early trades. Weak global cues continued to hurt investor sentiments in the market. The Sensex and Nifty were up by 0.33% and 0.22% respectively.

A meeting held by the Fed yesterday did not provide any big change in policies to boost the US economy, which sent negative sentiments among investors on concerns of a significant downside risk to the economy. The Fed also highlighted the risk to the US economy due to the European debt crisis.

Asian markets too continued their fall since yesterday, and are trading in the red after the statement of the German chancellor, who rejected to suggest on the 500 billion euro bailout fund. This affected investor sentiment globally.

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

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

Among the losers on the BSE Index were TATA Power, Hero MotoCorp, Bajaj Auto, HDFC and Hindalco Industries, which were all trading down between 0.4%-1%. NTPC remains the top lose in the pack, down by 1.65%.

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

We expect the market to remain volatile for the day. Inflation numbers are to be declared today. The European markets will also provide some vital cues on the desired direction of the market trend in the late afternoon session.