Markets trading in narrow range

As expected in our morning update, the Indian markets opened in the positive territory but quickly turned into the red. At present, both the indices are trading negative, with the Sensex down 42 points at 17541 and Nifty down by 11 points at 5328. Among the sectors, the Realty index is among the worst performers, down 0.41%. FMCG and IT are among the others trading marginally in the red zone. On the other hand, Healthcare, Metals and Power are among the gainers.

On the other hand, the Asian markets are trading in the positive territory, with the three major indices, i.e. Nikkei, Hang Seng and Shanghai, trading higher in the range of 0.50%-1%. The Asian stocks are trading higher on the back of the fall in the US jobless claims and also due to some positive sentiments from the Europe, where there is speculation on the bailout.

Back home, Realty heavyweight, DLF, is down 4.43% to Rs 205.15. ONGC is down 1.49% to Rs 283.55 after the its FPO flop show yesterday. Other stocks like HUL, ITC, HDFC and Infosys are trading lower. On the other hand, the Metals pack is shining in today's trading session. Hindalco is among the leading index gainers, up 2.39% to Rs 154.25. Tata Steel and Jindal Steel are also trading higher by 1.06% and 0.96% respectively. Stocks like Sun Pharma, NTPC and BHEL are some of those that are trading higher by more than 1%. Cipla, RIL and Bharti Airtel are some of the stocks that are trading marginally in the green zone.

Suzlon Energy extended its gains from yesterday, and is trading higher by 1.18% at Rs 30. Orchid Chemicals & Pharmaceuticals is up 2.05% to Rs 189.50 after the news that it has redeemed the FCCBs that were due in Feb 2012. Pennar Industries is trading 3.61% higher at Rs 33 after the company bagged orders worth Rs 25 crores.

The market breadth, which indicates the overall health of the market, is strong. On the BSE, 1376 shares rose and 690 shares declined. 91 shares remained unchanged.

We expect the market to remain volatile for the day.