Markets Trading Flat, Negative

As expected in our morning update, the Indian markets opened in the flat, negative territory today. Infosys' quarterly results and guidance disappointed the markets and continues to dampen investor sentiment. Moreover, weak global cues and a weak rupee against the dollar added to the woes.

At present, both the indices are trading lower, with the Sensex marginally down by 0.07 points at 17361 and Nifty up by 14 points at 5209. Among the sectors, Realty, Bankex, HC, etc. are trading higher between 0.42%-1.39%. On the other hand, Oil & Gas, Metals and IT are trading lower by 0.65%, 0.42% and 0.30% respectively.

The other Asian markets too are trading lower. Hang Seng and Shanghai are trading lower by 0.7% and 0.2 each, while Nikkei is trading lower by 1.58%. The markets are down on the back of growing concerns over the rising borrowing cost in Spain, which is putting pressure on the Euro and resulting in weaker cyclical stocks.

Back home, the Realty stocks have risen on the back of expectations that the RBI may cut the rates in its monetary policy meet due on Tuesday, Apr 17. DLF and Parsvnath Developers are among the leading realty stock gainers, up by 1.39% and 5.79% respectively. The banking players are also trading higher, with SBI up by 1.92% on the back of the rate cut hopes from the RBI.

On the other hand, the Metals stocks are trading lower. Hindalco, Jindal Steel, Sterlite, etc. are trading down with losses of 1.16%, 1.03% and 1.41% respectively. A depreciating rupee inching towards 51.20 against the dollar led the fall in the Metal stocks' trade today. Higher cross currency exposure and high imports of raw material impacts the profitability of these companies.

The market breadth, which indicates the overall health of the market, is positive. On the BSE, 1355 shares rose and 701 shares declined. 78 shares remained unchanged.

We expect the market to remain volatile for the day, with a negative bias.