Global Cues Keep Trades Narrow, Negative

The Indian markets continued to trade in a very narrow range, though in the negative territory. This is on the back of global cues as well as domestic news of the gas tariff revision by the Petroleum and Natural Gas Regulatory Board. At present, both the indices are trading lower by 0.30%. Among the sectors, Metals, Capital Goods, Consumer Durables, etc. are trading on a weaker note, while FMCG and Auto are trading on a positive note.

Other Asian markets are trading in a mixed bag, with Hang Seng and Nikkei trading in the red zone, while Shanghai recovered its morning losses and is trading higher by 0.88%.

The European markets have opened in the red, taking global cues as it opened after a 4-day Easter weekend break. The region's markets will react to the dismal US job data and rising concerns over the sovereign debt crisis. The 3 major indices, viz. the CAC, DAX and FTSE, are all trading lower more than 1%.

Back home, GAIL India continued to be one of the major index losers, down 3.02% to Rs 352.20. The Metals pack is also losing its shine, with Hindalco, Tata Steel and Jindal Steel trading lower in the range of 1.93%-1.43%. IT major, Infosys, is trading lower by 1.96% at Rs 2767 ahead of its March quarter results that will be declared on April 13 (Friday). Capital Goods heavyweights, BHEL and L&T, are trading lower by 2.45% and 1.12% respectively.

On the other hand, Tata Power is the leading index gainer, up 2.29% to 102.85. FMCG stocks, which are considered as defensive bets, are witnessing some buying, with stocks like HUL and ITC trading higher by 2.24% and 1.76% respectively. Others like Mahindra & Mahindra, Bharti Airtel, HDFC etc. are trading marginally in the green zone.

Indraprastha Gas is down 32% to Rs 235.08 after media reports that the Petroleum and Natural Gas Regulatory Board (PNGRB) directed it to refund excess tariff. Gujarat State Petronet is also down 8% to Rs 70.80.

The market breadth, which indicates the overall health of the market, is weak. On the BSE, 1460 shares declined, 1124 shares gained and 141 shares remained unchanged.

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