Markets trading flat, inflation figures pull down gains

The Indian markets continue to remain volatile, with both the bourses marginally down by 0.20%. Higher inflation numbers added woes to the investor sentiment in the afternoon trade, and the markets immediately lost their gains. Negative global news flows, especially those coming from the Euro zone, further dented the investors' confidence.

The European markets opened on a negative note. They continued the fall from the last 2 sessions over concerns from the region's debt crisis, which doesn’t seems to be close to resolution even after the European summit meet to contain the crisis. As the solution would not change anything fundamentally for the markets, it failed to convince the investors. Also, Germany remained opposed to raising the 500 billion Euro bailout plans.

Asian markets too continued to trade in the red zone over the same concerns from the European region. No change in the policy rate by the US Fed worried investors about a significant downside risk to the economy.

Back home, the BSE sectoral indices like CG, FMCG, Pharma, Bankex, Realty, Auto, Tech and IT are leading with marginal gains between 0.06%-1%. All other indices are trading with marginal losses anywhere between -0.38% to -0.75%.

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

Among the losers on the BSE Index, Tata Power, Hero MotoCorp, HDFC and Hindalco Industries were all trading down between 0.4%-1.5%. Tata Steel remains the top loser in the pack, down by 1.95%.

The market breadth, which indicates the overall health of the market, is positive. On the BSE, 1228 shares rose, 1256 shares fell and 129 shares remained unchanged.

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