Markets trade flat with marginal gains

Indian markets opened on a flat positive note today after witnessing volatile trade in the previous session. Both, the Sensex and the Nifty are up with marginal gains of 0.35% and 0.29% respectively. A mixed opening of the Asian markets on the back of Euro debt concerns that resurfaced yesterday created negative sentiments among investors in early trade.

The Asian markets opened on a mixed note, with the Hang Seng and Shanghai trading with marginal gains of 0.44% and 0.32% respectively. The Nikkei is down by 0.68% on the back of Euro debt concerns.

Previously, the European markets had closed in the red zone amid concerns that the banking sector will face problems in raising further capital.

Back home, Auto is leading among the BSE sectoral indices with gains of 1.26% after a weak session yesterday. Consumer Durables, Consumer Goods and Metals are up with marginal gains of 1.20% , 1.15% and 0.87% respectively. All the other indices barring Realty are up with gains below 1%. Realty is down by 0.49%.

Of the Sensex shares, Hero MotoCorp is leading the index with gains of 2.18% on the back of news that the company will be launching new motorbike models in the market. Others such as BHEL, Cipla, HDFC Bank, Tata Motors, etc. are up with gains between 0%-1.5% each. On the other hand, DLF, Hindalco, HUL, Maruti Suzuki and Wipro are all down between 0.5%-3.34%. DLF remains the top loser, down by 3.38%.

The market breadth, which indicates the overall health of the market, is positive. On the BSE, 1210 shares rose and 633 shares fell. 89 shares remained unchanged.

We expect the markets to remain flat and volatile for the day, and the European markets to provide some vital cues on the desired direction of the market trend in the late afternoon session.