Markets open marginally up

After last week's gains, the Indian markets have opened marginally higher today. Both Sensex and Nifty are currently trading up with gains of 0.38%.

Earlier, the European stocks closed in positives over the positive news flow over the Greek bailout. Dow Jones also closed with marginal gains, while NASDAQ closed on a negative note.

We believe that the Asian markets have discounted the positive news flow on the Greece front. The key concern at the moment is how Greece will go ahead with the fiscal deficit measures. On the back of this news, the Asian markets are trading in negatives at the moment. All three major Chinese and Japanese indices are trading with marginal losses. The Taiwanese index, however, has gained by a few points.

Among the sectoral indices, Realty, Power, Metals, CG and PSU have gained by over 1%. On the other hand, IT, Teck and CD are trading in negatives at this hour.

From the Sensex stocks, BHEL is leading the gains with 3.95 % gains so far. ONGC and Tata Steel have surged by over 3%. Hindalco and Tata Power are also up by more than 2%. GAIL, TCS, Infosys, Tata Motors, HDFC Bank, Wipro, Maruti Suzuki and Hindustan Unilever are all seen trading with losses at this time.

MOIL has surged by about 7% in the initial hours. Jet Air India, Bajaj Finserv and Motherson Sumi Systems have also gained by over 5%.

The market breadth, which indicates the overall health of the market, is positive. Out of a total of 2872 stocks, 1785 stocks advanced, and 974 stocks declined. 113 stocks remained unchanged.

We expect the markets to remain volatile ahead today. We also expect the RPI data that will be announced shortly to guide the further progress of the market today.