Markets close positive, inflation down to 6.55%

After opening on a positive note, the Indian markets remained flat throughout the day, regaining strength after the release of the inflation data. Inflation came down to 6.55% from 7.4%. The market seems to be in consolidation mode, with the Sensex and Nifty closing with gains of 0.14% and 0.16% respectively.

Other Asian markets closed trade on a mixed note. After the austerity measures taken by the Greek government, the market mood was quite positive. However, Moody’s rate cut of six more European countries dented investor sentiment.

The European markets also opened on a negative note today on the back of the rate cut by Moody’s, which worried investors over the austerity measures taken for the Greek debt revival.

Dow Jones Futures is currently trading 72 points or 0.57% up at 12874, indicating a positive sentiment in the US markets.

Back home, among the BSE sectoral indices, all the indices barring Oil & Gas and Pharma closed on a positive note. Among the leaders CG, Realty and Auto closed with gains of 2.3%, 2.29% and 2.14% respectively.

Of the Sensex shares, BHEL, DL, HDFC, Hero MotoCorp, Hindalco, L&T, M&M, Maruti Suzuki, SBI and Tata Motors are leading the index with gains between 2%-5%. In the losers pack, Cipla is leading with losses of 6.26%. Bharti Airtel, RIL and Tata Power are also down between 1.65%-3.56%.

The market breadth, which indicates the overall health of the market, was positive today. Out of the 3298 stocks traded on the BSE, 1676 advanced, 1529 declined and 93 remained unchanged.

In conclusion, we expect the markets to remain positive as investors are hoping for a recovery in the domestic economy and for some positive news from the US and European markets.