Markets U-Turn Into Positives, Europe Opens Strong

The Indian markets have given up all the negativity seen in the morning session, to turn positive. TCS has rallied 12.71% and has lifted the overall sentiment on the IT stocks. The IT index is up 4.82% at this time. Other IT stocks such as HCL Tech, Hexaware, Wipro, etc. have also rallied by over 2% each. Infosys, which had declined in value in the last few sessions, has also surged by 1.47%.

The peer Asian stocks have also recovered from their morning losses, and are reflecting flat to positive trades.

After a positive opening, the European markets are giving key support to the equity markets. DAX is up nearly 1% despite lower PMI numbers. CAC is up 0.84%, while FTSE is up 0.45%.

The rupee has further declined by 15 paise per dollar, and now stands at 52.65 per dollar.

Of the Sensex participants, the Power-related stocks such as Coal India, Tata Power, BHEL and NTPC are trading with gains. Metals stocks such as Hindalco, Tata Steel and Sterlite Industries are also trading up. On the other hand, Bharati Airtel is still trading with losses over the news of the higher spectrum prices set by TRAI. L&T, Bajaj Auto and M&M are also trading in losses.

Among the sectoral indices, IT, Teck, Power, Metals, PSU, CD and Realty are trading in green. All the other indices are in the red.

The shares of Nalco have surged by 6%. Voltas is also up by 3.32%. Alstom is marginally up after reporting improved margins in the Mar 2012 quarter. Lupin has announced that it will set up a new formulations manufacturing facility in Mihan.

Rajesh Exports has announced the opening of 20 new Shubh Jewellers showrooms in Karnataka. The scrip is marginally up. Sun Pharma has announced that it has received USFDA approval for the generic version of Zyprexa. The scrip has touched an intra-day high of Rs 604, and is trading at Rs 597.50 at the moment. Wockhardt saw an intra-day high of Rs 702 after the announcement that it has launched a drug in the US with 180 day exclusivity. The scrip has now turned volatile.

Companies like Cummins India, Idea Celluar, Britannia Industries, TCS, etc. are seeing strong volumes. ELANTAS Beck India and Kajaria Ceramics have touched an all-time high, while Kingfisher is still holding on to its all-time low.

Yesterday's institutional statistics on the BSE indicate that FIIs were net sellers, while DIIs were net buyers.

The market breadth at this time is mixed. Of a total of 2585 stocks traded, 1210 stocks have advanced, 1245 stocks have declined and 130 stocks have remained unchanged.

As the markets have managed to cut their morning losses, we expect them to close the day in the green, but with lower gains.