Markets extend their morning gains

Mid-Session Commentary 30th December 2011

Indian stock markets continue to hold on to their morning gains with both the indices up more than 0.80 per cent. All the sectoral indices are trading in the green with PSU, Bankex, Metals trading strongly on the higher side while FMCG, Health care and Power trading marginally up.

Asian Markets are also trading in a positive territory on the back of gains in the US markets. Nikkei and Hang Seng are trading up 0.67% and 0.39 per cent while Shanghai is trading with a gain of over a per cent. European markets have also opened in the green.

Back home, Tata Motors continues to be the lead index gainer, up 2.32 per cent at Rs 183.40. Banking stocks like ICICI bank and SBI are also trading higher by 1.70% and 1.21 per cent respectively. Stocks like Hero Motocorp, Coal India, TCS, HDFC etc are up more than a per cent.

On the other hand, Jindal Steel, Bajaj Auto and HUL continue to trade in the red, down anywhere between 0.40% to 0.50 per cent.

GTL Infra moved up 2.68 per cent to Rs 9.19, after the board approved its corporate debt restructuring (CDR) plans. PFC shares surged 5.04 per cent to Rs 138.70, after the company decided to launch long term Infra bonds in January 2012

The market breadth, indicating the overall health of the market, is strong. A total of 1406 shares have gained while 1141 shares declined. An aggregate of 110 shares remained unchanged.

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