Markets open positive, slip marginally to red

As expected in our morning update, the Indian markets opened in the positive territory today. However, at present, both the indices are trading in the red zone, with the Sensex down 26 points at 17723 and Nifty down by 15 points at 5366. Among the sectors, Healthcare, Oil & Gas and Auto are trading in the green zone, while Realty, Capital Goods; Power, etc. are trading in the red, dragging the markets southwards.

Other Asian markets are trading weak in the positive zone, with Hang Seng and Nikkei trading higher 0.70% and 0.60%, while Shanghai is trading marginally in the green zone, up 0.14%.
 
Back home, Tata Power is the leading index loser, down 3.16% to Rs 107.35. DLF, SBI and L&T are all trading down by more than 2%. Metals heavyweights like Hindalco and Sterlite Industries are also trading down by 1.54% and 1.39% respectively. Other stocks like NTPC, Infosys, Jindal Steel and BHEL are trading marginally in the red zone. On the other hand, Hero MotoCorp is the leading index gainer, up 1.92% at Rs 2007.55. Other stocks like Coal India, Sun Pharma, GAIL India and Mahindra & Mahindra are trading up between 1%-2%. HUL, ITC, ONGC and HDFC are trading marginally in the green zone.

VA Tech Wabag is trading flattish in the red zone, down 0.54% to Rs 375.10 after the news that its order intake for Q3 FY12 is Rs 533 cr and Rs 914 cr in 9M FY12. Bharti Shipyard plunged 5.70% to Rs 89.40 after disappointing Q3 FY12 numbers. The net profits of the company fell 93% to Rs 1.62 cr.

Other stocks that are going to announce their Q3 FY12 numbers today are Cipla, SBI, Shree Renuka Sugar, Coal India, Everonn, SAIL, etc. These could be volatile on the back of their numbers and management guidance.

The market breadth, which indicates the overall health of the market, is strong. On the BSE, 1270 shares rose and 1022 shares declined. 80 shares remained unchanged.

We expect the markets to remain volatile for the day.