FY13 Opens On Positive Note

After a dismal performance in FY12, the Indian markets have seen a slightly positive opening to the new fiscal FY13. In FY12, the benchmark Sensex lost 12% in value, resulting in a massive erosion of wealth. The new fiscal brings in a new challenge of higher economic growth with a cap on inflation. With the quarterly results on the edge, we expect the markets to remain volatile today.

The Asian markets are volatile at this hour. Shanghai is flat in its trades, while Hang Seng is down by 0.31% and Nikkei has advanced by 0.71%.

Among the sectoral indices, CD is up 3.02%, while Realty, Power and CG are each up by over 1%. All the other indices are marginally up, though FMCG and Oil & Gas are taking negative pressure, and both the indices are marginally down.

Of the Sensex stocks, DLF has shot up by 1.94%. L&T is also up by 1.71%. Power equipment major, BHEL, is also up by 1.40%. Auto stocks M&M and Tata Motors are both up by 1.3%. Power major, NTPC, is up 1.26%, as the Indian President is expected to give a fresh directive to Coal India. In the banking space, SBI is up 1% while HDFC is up 0.71% and ICICI Bank is up 0.09%. There is no update on whether Coal India has signed the FSAs with the power companies. The stock is down by 1.81% at this time, and may remain negative for the whole day. Others like Bajaj Auto, HUL, RIL, Hero MotoCorp and ITC are also down.

Among other stocks, Aurobindo Pharma is down 6.85% over the news of the CBI row. The financial shares of Oil India, Opto Circuits, Sun TV and Ranbaxy Labs are also down over 1% each.

The market breadth, which indicates the overall health of the market, is positive. Out of a total of 2047 stocks 1511 stocks advanced and 474 stocks declined. 62 stocks remained unchanged.

Ahead of the weak quarterly result expectations, we expect the markets to remain volatile due to high interest rates, rupee depreciation and the overall economic scenario.