Market recover losses, backed by Dec inflation numbers

The Indian markets recovered some points from their early lows amid news of the Dec 2011 headline inflation numbers, which came down to 7.47% from 9.11% last month. Both the bourses are marginally down by 0.2%. Overall, the negative global news flows, especially those from the Euro zone, have dented investor sentiment across the globe today.

Other Asian markets too continue to trade in the red zone over the concerns coming from the European region. The credit downgrade of the major European countries worried investors as regards the revival of the economy from the ever-deepening debt crisis.

The European markets themselves opened on a negative note over the downgrade of the major European countries, following which, negative sentiments built up among the investors globally and in Europe.

Back home, Tech and IT are leading the BSE sectoral indices with 2% gains, while FMCG is also up with marginal gains of 0.55%. All the other indices are trading negatively, with losses between 0.21%-1.54%. Realty remains the top loser, with a loss of 1.54%.

The IT stocks such as Infosys, TCS and Wipro are leading the 30-share Sensex with gains between 1.5%-2.15%. Metals stocks such as Hindalco, and Jindal Steel are trading lower by 1.09% and 1.27% respectively. Capital Goods heavyweight, L&T, is also looking weak, trading down by 1% at Rs 1160.60. Other losing stocks include Cipla, ONGC, Bajaj Auto, NTPC, Sun Pharma, Reliance Industries etc., all of which are trading down between 1%-2%.

On the other hand, Maruti Suzuki is the leading index gainer, up 2% to Rs 996. Coal India, ITC, Tata Power, Tata Steel etc. are trading marginally higher in the green zone.

Investors should watch out for the stocks of companies like Dewan Housing, Motilal Oswal, Reliance Industrial Infrastructure, ING Vysya Bank, South Indian Bank etc., which are scheduled to announce their Q3 FY12 results.

The market breadth, which indicates the overall health of the market, is positive. On the BSE, 1897 shares rose and 903 shares fell, while 96 shares remained unchanged.

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