Markets remain flat and volatile on profit booking

Indian markets continue to remain flat and volatile, with both the bourses marginally down by 0.20%. Mixed results from the Asian markets and some profit booking have made the Indian market volatile. Also, investors are worried as to how the global economy, especially Europe, will revive itself from the deepening debt crisis. The negative opening of the European market is further leading to negative sentiments among investors.

The other Asian markets closed on a mixed note today. The Nikkei was up by 1.22% after a holiday, while the Hang Seng and Shanghai ended with losses of 0.82% and 1.42% respectively.

European markets opened on negative note, halting their 4-day rally ahead of the bond sale by Germany and Portugal.

Among the sectoral indices back home, CG and PSU are leading with gains of 0.66% and 0.65% respectively. PSU stocks are up ahead of the Cabinet meeting on the disinvestment policy. Others like Power, Pharma, Metals and Bankex remained positive with marginal gains between 0.1%- 0.30%. All the other indices were down between 0.30%-1.38%. Auto remained the top loser for the session, down by 1.38%.

Heavyweights BHEL and Tata Motors continued to lead the 30-share Sensex, with gains of more than 2.48% and 1.88% respectively. Among others, stocks like Cipla, ICICI Bank and Wipro are trading with gains between 0.30%-1.28%. All other scrips are trading with losses between 0.08%-4.6% each. Bajaj Auto remains the top loser on the index, down by 4.46%.

The market breadth, which indicates the overall health of the market, is positive. On the BSE, 1619 shares rose, 972 shares fell and 107 shares remained unchanged.

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