Makets trade on a firm note

Indian markets have continued to trade on a firm note, led by a sharp rally in major sectors like Metals, Realty, Capital Goods and Banks. Both the Sensex and Nifty are trading up with gains. The positive opening of the Asian markets and fresh buying at lower levels in the all the sectors took the markets higher. The Sensex and Nifty are up by 1.91% and 2.04% respectively.

Asian markets continued their rally, and have been witnessing positive trade. Investors flocked back to the equity markets following the pick up in the Chinese market and in manufacturing activity, which boosted investor sentiment across the region.

After a strong positive close in yesterday’s trade, the European markets have climbed today, and opened on a positive note with gains between 0.22%-1.65%. UK's FTSE, after having a positive close on Monday's trade, moved up today with gains of 1.65%. However, the French index CAC is trading on flat note.

Back home, Metals is leading the sectoral indices, with gains of 4.26%. All the other indices are trading with good gains between 1%-3% each. In the Metals and Mining space, Coal India rose 5.2%, extending yesterday's 3.61% gains. Hindalco Industries, Tata Steel and Jindal Steel all gained between 2.5%-5% on the Sensex. Other stocks like DLF, Jaiprakash Associates, L&T, Tata Motors, TCS and Wipro are also trading with strong gains between 3%-4% each. M&M continues to trade lower by 1%.

The market breadth, which indicates the overall health of the market, is positive. On the BSE, 1820 shares rose, 683 shares fell and 107 shares remained unchanged.

We expect the markets to be positive for the remainder of the day, and don’t see much of a downside coming.