Day Closes With Gains, CD Index Up 3.89%

The Indian markets have ended the first day of the new fiscal in the positive. Both Sensex and Nifty closing with gains of 0.42% by the end of the day. During the early morning trades, the markets remained volatile, but they were range bound later in the day. The PMI index figure has also shown that the expansion activity in the manufacturing segment has declined slightly.

The Asian indices gave no firm cues, with the Hang Seng down by 0.16% and Nikkei closing with gains of 0.26%.

All the key European indices have trimmed their initial gains, with FTSE and CAC turning in to negatives and DAX slightly in the positive.

Dow Jones Futures is currently trading 0.04% or 5 points down at 13137, indicating a negative sentiment in the market.

Back home. the CD index was positive for the entire day, and closed with 3.89% gains. Bankex, CG, Realty and Power are also remained positive today. Auto, HC, Metals and Oil & Gas, however, were negative by the end of the day.

Among the Sensex stocks, DLF was up 2.88%. NTPC and BHEL were up by 2.74% and 1.30% respectively. TCS and Wipro closed in the positive. M&M, Tata Motors and Hero MotoCorp were also up. Bajaj Auto and Maruti Suzuki, on the other hand, were in the red zone. Coal India remained down today, and we expect a further downside in the stock tomorrow.

Overall, the market breadth remained positive today. Out of a total of 3209 stocks traded on the BSE, 2163 stocks (67%) advanced, 951 stocks (30%) declined and 95 stocks (3%) remained unchanged.

With the quarterly results on the edge, we believe that the markets will remain volatile for the entire week. Besides, the new proposal by the current govt. to increase the service tax and excise duty will be implemented in the current fiscal, and hence, the profitability of companies will remain slightly subdued. Traders and investors may take the cues from these factors, as well as from the global indices.