Markets rebound; Metals, Realty, Power up

The Indian markets, which showed high volatility in the morning trades, have rebounded with nearly 1% gains. The BSE Sensex is currently up by 144 points, while Nifty is up by 45 points.

Other Asian indices have ended the week with a mixed trend. The Nikkei and Hang Seng were in positives, while Shanghai closed with 1.34% negative returns.

Meanwhile, European markets have opened in the positive.

From the sectoral indices, Metals is up by 4.17% and led the intra-day rally. The Realty index is also up by 3%. The Power index, sparked by the positive IIP data, has risen by 2.56%. The Teck index has also trended into the positive after two days of fall, though IT is still trading in the red.

Of the 30 Sensex stocks, Tata Steel is leading, up by 8% in an hour’s time in the afternoon session. Coal India is also up by 5.61% after it announced a 25% pay hike for its employees. The shares of GAIL India, Bajaj Auto, Hero MotoCorp and HDFC however, have slipped by over 1%.

Power companies such as Reliance Power, Tata Power, Torrent Power, Suzlon Energy, Areva T&D India, Jaiprakash Power Ventures and Alstom Projects India etc. are in the green after positive IIP data. JP Power is the top ‘A’ group gainer, up by over 12%. JSW Ispat is also up by over 10.91%.

The market breadth, which indicates the overall health of the market, has turned positive. Of the total 3028 stocks traded, 2195 stocks advanced, 749 stocks declined and 84 stocks remained unchanged.

In our opinion, the markets will remain positive ahead in the day.