Markets recoups yesterday's losses

As expected in our morning update, the markets recouped the losses made yesterday. At present, both the indices are trading in the green zone, with the Sensex up 187 points at 17633 and Nifty up 59 points at 5340. All the sectors are trading in the positives, except IT, which is trading marginally red, down 0.32%. Consumer Durables, Realty and Metals are among the leading indices, trading higher more than 2% each.

The other Asian markets are trading in a mixed bag, with the Nikkei and Shanghai trading in the red, down 0.41% and 0.39% respectively. On the other hand, the Hang Seng is trading higher by 0.40%. Nikkei is trading down after one of its companies, Elpida Memory, filed the nation’s biggest bankruptcy in 2 years.

Back home, Sterlite Industries is witnessing some buying after yesterday’s fall, and is trading higher by 3.89% at Rs 120.15. Other Metals stocks like Hindalco and Tata Steel are also trading higher up by 3.54% and 2.94% respectively. Banking heavyweights ICICI Bank and SBI are trading higher 2.44% and 1.97% respectively. ITC, Infosys, Sun Pharma and Maruti Suzuki are trading marginally in the green zone. On the other hand, IT majors TCS and Infosys are the only index stocks that are trading red, down 1.17% and 0.13% respectively.

JSW Steel is trading higher by 2.04% at Rs 774 after the news that the company's steel production for Jan 2012 came in at 8.05 lakh ton. Pennar Industries is trading 4.91% higher at Rs 32.05 on the back of the news that the company has bagged orders worth Rs 13 cr.

The market breadth, which indicates the overall health of the market, is strong. On the BSE, 1602 shares rose and 520 shares declined. 77 shares remained unchanged.

We expect the markets to remain volatile for the day.