Markets flat, Sterlite down 3%

The Indian markets have opened sideways for the 2nd time in this week. Both the benchmark indices are showing volatility, and may continue trading in same fashion ahead in the day.

The scenario on the 3 key Asian indices is mixed at this hour. The Nikkei is trading marginally up, while Shanghai and Hang Seng are trading down.

Earlier, the US as well as European stocks closed negative over the Euro zone debt crisis. The economic data showed that home sales in the US increased for the month of Jan 2012, though weekly mortgage applications declined. The US jobless claim data is also expected today, which will guide the global markets tomorrow.

Among the sectoral indices, CD, Oil & Gas, FMCG, Bankex, HC and PSU are seen in the green zone, while the rest are in the red. Both Metals and Realty have lost over 1% in the early trades.

From the Sensex stocks, SBI, which was down yesterday, is back in the positives with over 2% gains in the morning session. Hindustan Unilever, Tata Motors and BHEL are also up by more than 1% each. RIL has gained 0.6% so far. The financial shares of Sterlite Industries have further tanked by 3% and may see more downtrend ahead in the day. In the Auto space, M&M, Hero MotoCorp, Bajaj Auto and Maruti Suzuki are seen taking the selling pressure. Energy stocks such as NTPC, Tata Power, GAIL India and Coal India are all in the losers list.

In other stocks, the shares of Ranbaxy have risen by about 1%. The company will announce its Dec 2011 quarter and CY11 results today, and is expected to put in weak numbers as well as a forex loss. The shares of Unitech are trading down by 2.61%. Lanco Infra showed good volumes and trades last week. Its shares are currently trading up by 3.85% and may hold the gains ahead in the day.

The market breadth, which indicates the overall health of the market, is negative. Out of a total of 2507 stocks, 855 stocks advanced and 1580 stocks declined. 72 stocks remained unchanged.

We expect the markets to remain volatile today.