Markets swing positive, Hexaware up 8%

Backed by strong global and domestic cues, the Indian markets have opened on a very strong note. The Manufacturing Purchasing Managers Index (PMI) posted the fastest growth in 8 months, indicating a growth in the economy. On account of this, we expect the markets to gain further today. The Sensex is currently trading up by 0.97% at 17468, while Nifty is trading up by 0.87% at 5281.

The scenario in the Asian markets is also very promising and is creating a wave of positive sentiment. All the indices are trading in the green. Hang Seng has surged by 1.49% after positive data showing that the Chinese PMI rose to 50.5 in Jan 2012 from 50.3 in Dec 2011.

Earlier, all the major indices in the US and European markets ended the day in gains. The European markets rallied by about 2%, while Dow Jones and NASDAQ were also significantly up.

Among the sectoral indices, CG, IT, Metals, Bankex, PSU, Power and Teck have all risen by over 1%. The defensive HC and FMCG indices have take a back seat, and are marginally up by 0.14% and 0.26%.

27 of the 30 Sensex stocks have surged, indicating a very positive day for investors. BHEL and Sterlite industries have surged by over 5% each, while Tata Power has gone up by over 3% today. The IT stocks such Infosys, TCS and Wipro have also surged by over 1% each. Coal India though, has not yet recovered from the news of coal pricing, shedding about 1% today. Bajaj Auto and ITC also feature in the losers list.

Telecom stocks seem under pressure at the moment after the Supreme Court ruling about cancellation of several licenses granted in 2008.

Ahead in the day, over 80 corporates are due to announce their quarterly results, including companies like Piramal Health, Manappuram Finance, P&G, RCF, Thermax, Andhra Bank, Corporation Bank, Hexaware Technologies etc. P&G's stock has shed a few points, while Andhra Bank and Thermax have gained over 3% each and Hexaware Technologies has surged by 8% at this hour. Investors should keep track of these stocks.

The market breadth, which indicates the overall health of the market, is very positive. Out of a total of 2572 stocks, 1799 stocks advanced and 681 stocks declined. 92 stocks remained unchanged.

With the extremely positive news flow from the global and domestic fronts, we expect the markets to retain their sheen.