Markets still looking quiet

The Indian markets continued trading in a very narrow range, as both the indices are currently trading marginally in the red zone.

Among the sectors, only Oil & Gas showed some strength, up by more than 2%. Consumer Durables and Realty are trading marginally in the green zone. On the other hand, IT, Metals, Teck and Bankex are the sectors that are dragging the markets southwards.

Asian markets are trading in a mixed bag, with the Hang Seng and Nikkei trading in the green, while Shanghai is down by more than 1%. The Chinese market saw some profit booking after yesterday’s rally of more than 4%.

The European markets have opened on a quiet note, and are currently in the red zone.

Back home, Mahindra & Mahindra is among the leading index losers, down 3.74% to Rs 679.60. Other stocks like Tata Steel, Wipro, ICICI Bank, Sterlite Industries and BHEL are down by more than 2%. SBI, ITC, Jindal Steel, etc. are trading marginally in the red zone.

On the other hand, Reliance Industries continues to be the index gainer, up 3.68% to Rs 767.60. This is on the back of the news that the board is considering a buyback of shares. The Oil & Gas stocks are giving support to the market, with ONGC trading higher by 2.46% at Rs 268.20. Other stocks like L&T, Maruti Suzuki, Bharti Airtel, etc. are trading marginally higher in the green zone.

KEC International gained 2.85% to Rs 50.50 after the company secured a new order worth Rs 340 cr. Chambal Fertilisers continued yesterday’s losing momentum, and the stock is down 1.91% to Rs 77 after the company reported losses on the back of exceptional deferred tax liability.

The market breadth, which indicates the overall health of the market, is weak. A total of 1525 shares declined, 1055 shares gained and 105 shares remained unchanged.

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