Markets quiet in early trade

The Indian markets opened on a flat positive note today. They remained quiet in early trade though, on the back of various events all across the globe, among them being Moody’s rating downgrade of six more European countries on concerns over their debt burden. This has built negative sentiments among the investors. Sensex and Nifty are both trading up with 0.34% and 0.29% gains respectively.

Other Asian markets opened on a mixed note today following the downgrades by Moody. Both Hang Seng and Shanghai are trading in the red zone, while Nikkei is up by 0.5%.

The European markets too closed on a positive note yesterday on the hopes that the austerity plans to bail out Greece will help the economy to emerge from the crisis.

Back home, among the BSE sectoral indices, Realty, Bankex and Auto are leading with gains of 1.46%, 1.04% and 1.01% respectively. On the other hand, Pharma, Teck, IT and Power are trading down between 0.02%-0.66%. Other indices are marginally up below 1%.

Among the Sensex shares, SBI is leading the with gains of 3.89%, while other like DLF, Hindalco, L&T, M&M and Tata Motors are trading with gains between 1%-1.5%. Among the losers pack, Cipla is down by 5.12% and others like Tata Power, ONGC and Bharti Airtel are down between 1.5%-1.3%.

The market breadth, which indicates the overall health of the market, is positive. On the BSE, 1359 shares rose and 797 shares fell. 90 shares remained unchanged.

We expect the market to remain flat for the day as well as the European markets to provide some vital cues on the desired direction of the market trend in late afternoon session.