Markets Recover Some Morning Losses

The Indian markets have recovered some of their morning losses, though they are still trading in the negative territory. At present, both the indices are trading down by less than 0.50%. Among the sectors, Metals, Capital Goods, Oil &Gas, etc. continued trading lower, while Heathcare and Bankex are trading marginally in the green zone.

Other Asian markets are trading in a mixed bag, with Hang Seng and Nikkei trading in the red, while Shanghai is trading marginally in the green. The Chinese market is trading higher on the back of speculations that property sales will increase and that the government may take steps to fuel growth in the economy.

The European markets have opened in a very narrow range, with FTSE trading marginally in the red, while CAC and DAX are trading in the green zone. The markets in the zone are taking cues from the Aluminium Company of America (ALCOA), which posted a surprised profit in the March 2012 quarter.

Back home, the Metals stocks led the losers list, with Jindal Steel, Sterlite Industries, Tata Steel, etc. trading down in the range of 1.5%-3%. The Capital Goods heavyweights are also dragging the market southwards, with stocks like BHEL and L&T trading down by 1.52% and 1.06% respectively. Others like Maruti Suzuki, ICICI Bank, Coal India, HDFC Bank, etc. are trading marginally in the red zone.

On the other hand, GAIL India is witnessing some buying and is the leading index gainer, up 0.69% at Rs 359 after being beaten down in the past trading sessions. The Pharma stocks like Sun Pharma and Cipla, which are defensive bets, are trading higher. Infosys is trading in a very narrow zone, though in the positive territory, ahead of its March 2012 quarter result that are to be announced on April 13, 2012 (Friday). Other stocks like NTPC, ONGC, HUL, etc. are trading marginally in the green zone.

Tecpro Systems is trading higher by 1.84% at Rs 188 after the company received orders worth Rs 296.90 crore. Indraprastha Gas has witnessed some buying, as the stock is trading up by 1.70% at Rs 233.70 after being beaten down in the past couple of trading sessions. The stock is looking nervous after the Petroleum and Natural Gas Regulatory Board (PNGRB) directed the company to refund excess tariffs.

The market breadth, which indicates the overall health of the market, is weak. On the BSE, 1326 shares declined, 1265 shares gained and 129 shares remained unchanged.

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