Markets open 2012 with modest gains

The Indian markets opened positively in the first trading session for 2012. Both the bourses are trading with modest gains of 0.26% points each.

Most of the other Asian markets declined in the opening session of trade for Jan 2012, signalling weak sentiments all over the globe. The Nikkei and Hang Seng will remain closed today.

Among the BSE sectoral indices, Consumer Durables, Oil & Gas, Metals and PSU are all trading with marginal gains between 0%-1%. All the other indices are trading in the negative territory, with losses between 0%-1% each.

On the 30-share Sensex, Coal India is leading with gains of 2% on the back of news that it has entered into a new coal price regime effective from Jan 2, 2011 onwards. Other Sensex gainers like Bharti Airtel, Cipla, ICICI Bank, Maruti Suzuki, Sterlite, Tata Motors, Tata Steel and TCS are trading with marginal gains between 0%-1% each. However, most of the scrips on the indices are trading on a negative note. Bajaj Auto remains the top loser among the pack, with losses of 4%. Companies like DLF, HDFC Bank, Hero MotoCorp, Hindalco, Sun Pharma and BHEL are trading with losses between 1%-2% each.

The market breadth, which indicates the overall health of the market, is positive. On the BSE, 1213 shares rose and 697 shares fell. 88 shares remained unchanged.

We expect the markets to remain flat for the rest of the day and advise readers to play with caution. There will not be many clues globally, as most of the markets will remain closed. It is hard to make any direction in the absence of strong leads.