Markets extend gains, IT still down

The Indian markets have extended their morning gains. At present, both the indices are trading higher by more than 1.60%. All the sectors are trading in the green zone, except IT, which is trading marginally down by 0.29%. Realty, Metals and Bankex are the sectors that are trading higher by more than 3% each.

Other Asian markets are also trading in the positive territory. The Hang Seng is trading higher by 1.47%, while Nikkei and Shanghai are trading up 0.92% and 0.20% respectively.

The European markets have opened on a very flat note, though they are trading in the positive territory. FTSE and CAC are up 0.10% and 0.15% respectively, while CAC is up 0.31%.

Back home, banking major, SBI, is one of the leading index gainers, up by a whopping 5.79% to Rs 2248.05. The Metals pack, which includes Hindalco and Sterlite Industries, is also trading higher by 4.93% and 4.50% respectively. Other stocks like RIL, Coal India, Bajaj Auto, Jindal Steel and ICICI Bank are trading higher by more than 2%. Sun Pharma, NTPC, HUL, etc are trading marginally in the green zone. On the other hand, the IT pack continues to trade lower, with TCS and Infosys down 1.82% and 0.12% respectively. Other stocks like ONGC, ITC and NTPC are also trading in the red zone.

Orbit Export is up 3.51% to Rs 93 after the news that the company's board has decided to declare an interim dividend of Rs 2.50 per share. JSW Steel extended its morning gains, and is trading higher by 4.13% at Rs 789.80 after the crude steel production numbers came in at 8.05 lakh tonne for Jan 2012.

The market breadth, which indicates the overall health of the market, is strong. A total of 2003 shares have gained, 718 shares declined and 113 shares remained unchanged.

We expect the markets to remain volatile for the rest of the day, and advise readers to play with caution.