Markets continue to trade flat

Not finding direction in the last two days, the Indian markets continue to trade on a flat positive note. The Sensex and Nifty are trading with gains of 0.27% and 0.33% respectively.

Other Asian markets recovered from the early lows. The Hang Seng and Nikkei are up with marginal gains of 0.15% and 0.58% respectively, while Shanghai is up by 0.15%. However, investors remained worried over a series of Euro zone ratings cuts by Moody's.

The European markets opened on a negative note today on the back of the ratings cut by the Moody’s, which further warned on ratings downgrade of the other major European nations.

Back home, among the BSE sectoral indices, Auto, Realty and Bankex continue to lead with gains of 1.07%, 0.79% and 0.73% respectively. Power, Pharma, Teck and IT are marginally down between 0.10%-0.53%. Other indices are marginally up between 0%-0.6%.

Among the Sensex shares, SBI and Hindalco are leading the  bourses with gains of 3.06% and 3.22% respectively, while other scrips like Hero MotoCorp, L&T, M&M, Maruti Suzuki and Tata Motors are trading with gains between1.33%-2.2%. From the losers pack, Cipla is down by 5.53% and others like Tata Power, ONGC and Bharti Airtel are down between 1%-4.63%.

The market breadth, which indicates the overall health of the market, is positive. On the BSE, 1430 shares rose, 1303 shares fell and 111 shares remained unchanged.

We expect the markets to remain weak for the rest of the day.