Markets build on morning gains

The Indian markets extend their morning gains, with both the indices trading higher by almost 2%. All the sectors are continuing to trade in the green zone, with Realty and Metals up more than 4%. Other Indices like Capital Goods, Oil & Gas, Auto and Power are also trading higher by over 2%.

Other Asian markets are also trading in the green zone, with the Hang Seng and Nikkei up 1.05% and 2.5% respectively, while Shanghai is up by a whopping 4%. This is on the back of the Chinese economy's Q4 GDP growth rate that came in at 8.9%, accelerating at a faster pace.

The European markets have also opened on a positive note, with DAX up more than 1%, and CAC and FTSE trading higher by 0.91% and 0.98%.

Back home, Maruti Suzuki is the leading index gainer, trading up 7.30% at Rs 1078. The Metals pack is also shining with stocks like Hindalco, Sterlite Industries and Tata Steel trading higher in the range of 4.51%-7.21%. Capital Goods heavyweights, L&T and BHEL, are trading higher by 4.10% and 2.08% respectively. Other stocks like NTPC, SBI, Jindal Steel, Bajaj Auto and RIL are trading higher over 2%. TCS, GAIL India, HDFC etc. are trading marginally in the green zone. ITC still remains the only index loser, down marginally by 0.05% to Rs 209.

HCL Tech is up 5.43% to Rs 428.10 after the company posted robust Q2 FY12 (book closure June) numbers. The Net Profit of the company grew by 43% to Rs 573 cr on a YoY basis. Opto Circuits India gained 3.20% to Rs 222.65, after the company’s US subsidiary received an order.

The market breadth, which indicates the overall health of the market, is very strong. A total of 1871 shares have gained, while 824 shares declined. 104 shares remained unchanged.

We expect the markets to remain volatile with a positive bias for the rest of the day, and advise investors to play with caution.